Showing posts with label Vector Energy. Show all posts
Showing posts with label Vector Energy. Show all posts

Sunday, November 7, 2010

Vector Ltd: Share Price chasing fibre network success





Vector Ltd [VCT.NZX] is not a sexy stock. It is an electricity lines company run largely by so,so management appointed under a quasi local government regime, with a small public shareholding.

What has been sexy though is the share price rise over the last two months. (see two month chart above) The stock has risen from just over $2.05 back in September to finish at $2.43 at close of business last Friday. Just under 20%.

Its full year result to June 2010 was a good one but the stock price didn't take off until mid September (see 6 month chart below) and it has been going northwards since.

Much speculation has been made as to whether VCTs bid to become a player in the roll-out of a taxpayer funded fast internet fibre laying programme and the management of that network with Vector branded internet customers providing additional income for the company but the jury is still out as to whether the company will be a player and even if they are just how profitable such a network might be for them.

This market speculation, I think, is the reason behind the share price rise. It isn't warranted and even when the facts come out about who the winners and losers will be in the battle for taxpayer moola to install and manage "fast broadband" it will be sometime before we see if it will be a money spinner for anyone.




Vector @ Share Investor

Long Term View: Vector Ltd
Vector sale decision hangs on political knife edge
NZX's Top 10 Dividend Returns

Discuss VCT @ Share Investor Forum
Download VCT Company Reports





c Share Investor 2010







Monday, August 23, 2010

Long Term View: Vector Ltd



In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO. The calculation of returns includes dividends and tax credits.

Vector Ltd [VCT.NZX] has been a poor investment for shareholders since its August 2005 listing at $2.38c per share . With 61c in net dividends and 30% more in tax credits gives (see NZX chart above) VCT a 15% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the nearly 5 year listing of VCT an annual net return of 3%.

This compares to an annual return from the average of all NZX indexes of minus 2%.




Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
ANZ Banking Group Ltd
Briscoe Group Ltd
Cavalier Corporation Ltd
Comvita Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hallenstein Glasson Holdings Ltd
Hellaby Holdings Ltd
Infratil Ltd
Kirkcaldie & Stains Ltd
Kiwi Income Property Trust Ltd
Mainfreight Ltd
Michael Hill International Ltd
Metlifecare Ltd
Methven Ltd
Mowbray Collectables Ltd
NZ Oil & Gas Ltd
New Zealand Refining Ltd
New Zealand Stock Exchange Ltd
Nuplex Industries Ltd
PGG Wrightson Ltd
Port Of Tauranga Ltd
Postie Plus Group Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Skellerup Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Steel & Tube Ltd
Telecom NZ Ltd
Telstra Corp Ltd
Tourism Holdings Ltd
Trustpower Ltd
Turners Auctions Ltd
Turners & Growers Ltd
The Warehouse Group Ltd
Wakefield Health Ltd


Vector Ltd @ Share Investor


Vector sale decision hangs on political knife edge

Discuss VCT @ Share Investor Forum
Download VCT Company Reports


Recommended Amazon Reading

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c Share Investor 2010

Thursday, July 30, 2009

List of Bruce Sheppard's top NZX listed company debt worries (UPDATE 7)

Image result for bruce sheppard

This update adds GFF, SKT & SKC to the List

Further to rumblings made by Bruce Sheppard on behalf of the New Zealand Shareholder's Association in May that in his opinion, roughly 20 listed companies in New Zealand were breaching banking covenants and after writing to these companies 2 so far have replied to Bruce. He is naming names as each company replies to him.


1. Fisher & Paykel Appliances [FPA.NZ]

2. Nuplex [NPX.NZ]

3. Tourism Holdings [THL.NZ] - Read THL's letter to Bruce
4. Vector Ltd [VCT.NZ] - Read VCT's letter to Bruce

5. Freightways Ltd [FRE.NZ] - Read Bruce's letter to FRE & the reply
6. Skellerup Holdings [SKL.NZ] - Read Bruce's letter to SKL & the reply

7. Comvita Ltd [CVT.NZ] - Read Bruce's letter to CVT & the reply

8. Ebos Ltd [EBO.NZ] - Read Bruce's letter to EBO & the reply

9. Abano Healthcare Group [ABA.NZ] Read Bruce's letter to ABA & the reply

10. Metlifecare Ltd [MET.NZ] Read Bruce's letter to MET & the reply

11. Restaurant Brands Ltd [RBD.NZ] Read Bruce's letter to RBD & the reply

12. Kirkcaldie & Stains [KRK.NZ] Read Bruce's letter to KRK & the reply

13. Sky Network TV [SKT.NZ] Read Bruce's letter to SKT *

14. Sky City Entertainment Group [SKC.NZ] Read Bruce's letter to SKC & the reply

15. Goodman Fielder [GFF.NZ] Read Bruce's letter to GFF & the reply *


I will post the rest here as and when the other 5 odd companies reply to Brucie.

The laggers need to get a wriggle on, otherwise it wont look good for them.

Bruce is going to list those that didn't reply to him next week.


Disc I own FRE, SKC & GFF shares in the Share Investor Portfolio


Related Links

NZ Shareholders Association

Recent Share Investor Reading


Discuss this topic @ Share Investor Forum




c Share Investor 2009





Wednesday, December 17, 2008

Share Investor's 2009 Stock Picks


It is that time of the year to pick stocks for 2009.

In the face of a global recession, an uncertain economic future and dwindling values, even for good assets, it is going to be hard to pick winners.

Please keep in mind dear readers that the picks are my own and they reflect my investment philosophy and not necessarily anyone else's.

My picks are based on a long-term view, regardless of the current short to medium term market turmoil and economic uncertainty.



Fisher & Paykel Healthcare
[FPH:NZ]



With that in mind I will kick off my picks with a company that I consider will be one of the big successes of the next 5-10 years, Fisher and Paykel Healthcare, the health care products provider.

I had it as a pick for 2008 and it has been one of the better performers this year, even though it is still well off its highs share price wise.

Company profit forecasts to March 31 2009 have been estimated at NZ$84 million and revenue is also set to grow as it has done for the past.

Fisher profits are largely immune from the current market turmoil as buyers simply have to have the products that the health care company makes regardless of a global recession.

This invincibility from outside economic influences makes the pick for my next stock a relative no-brainer.


Fisher & Paykel Healthcare @ Share Investor

Stock of the Week: Fisher & Paykel Healthcare
Analysis - Fisher & Paykel Healthcare: FY Profit to 31/03/09
Schroder Investment Management takes big Fisher & Paykel Healthcare stake
Long VS Short: Fisher & Paykel Healthcare
Big Fisher & Paykel Healthcare trades a curious tale
Why did you buy that stock? [Fisher & Paykel Healthcare]

Drinking and Trading
Share Investor's 2008 stock picks
Share Investor's 2009 stock picks
Fisher & Paykel: A tale of two companies
FPH downgrade masks good performance

Discuss Fisher & Paykel Healthcare @ Share Investor Forum - Register free 




Ryman Healthcare 

[RYM:NZ]



Ryman Healthcare, the retirement home operator, carer and developer, has been increasing revenue and profit for many years and the most current profit result shows that there has been no let up in this trend with a rise of 10% to NZ$25.9 million.

Development of new villages has increased apace over the last year and there are at least half a dozen new ones ready to go at beginning 2009, including two massive villages at Orewa and Whangerei.

The long-term prospects for this company are excellent as New Zealands elderly are set to grow markedly in the future.

Metlifecare [MET:NZ], Rymans major listed competitor is also worth a look at for the same reasons as Ryman.

I have Metlifecare on my watchlist.


Ryman Healthcare @ Share Investor

Share Price Alert: Ryman Healthcare Ltd 2
Ryman Healthcare Ltd: 2011 Half Year Profit Review
Gordon Macleod on Ryman Healthcare's Australian Expansion
Share Investor Q & A: Ryman Healthcare's CFO Gordon MacLeod
Ryman Healthcare: Interview sneak peak
Ryman Healthcare Ltd: Australian Expansion Needs Care
Share Investor Q & A: Reader Questions to Ryman CFO Gordon Macleod
Long Term View: Ryman Healthcare Ltd
Stock of the Week: Ryman Healthcare Ltd
Why did you buy that stock? [Ryman Healthcare]
Long VS Short: Ryman Healthcare Ltd
Time for retirement?


Discuss Ryman Healthcare @ Share Investor Forum - Register free 



Mainfreight Ltd
[MFT:NZ]



Mainfreight Ltd, the New Zealand global logistics operator, have a goal of NZ$1 billion in revenue before 2010 and are only a gnats whisker short of that figure.

It is on my pick list again for 2009 as it is New Zealands best managed company and if management is good then results generally follow-this has been the history of the company thus far.

Currently business is experiencing a slow down, although profit was up nearly 10% in the last reporting period.

Management are going to approach the global market downturn with a "prudent, cautious approach to costs"-the status quo for the business since its inception.


Mainfreight @ Share Investor


Long vs Short: Mainfreight Ltd
Mainfreight drives excellent results through prudent management
Why did you buy that stock? [Mainfreight Ltd]
Mainfreight 2008 Annual report worth reading
KiwiRail will cost Mainfreight
Mainfreight keeps on truckin
A rare breed



Pumpkin Patch Ltd 

[PPL.NZ]

N/A

One of the worst performing stocks of 2008 if you consider a 60% odd drop in share price this year and a drop of nearly 30% in full-year after tax profit to July 31 2008.

All is not lost though!

The company has great long-term potential, with excellent product a strong brand and very loyal customers and with the share price at just over a buck it is a relative bargain when one considers it was trading at nearly 5 dollars just over a year ago.

One to stock up on during price dips and it probably will when pre-Christmas sales figures come through during the beginning of 2009.




Pumpkin Patch @ Share Investor


Pumpkin Patch buyback shows confidence in the future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buying

Why Did you but that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery

Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch VS Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills



Other quotable notables.

Telecom NZ [TEL:NZ] for its dividend. Buy around $2.

Contact Energy [CEN:NZ], Trustpower [TPW:NZ] and Vector[VCT:NZ] Any infrastructure company, especially these electricity companies are a good buy at any time but battered share prices are a good opportunity to stock up on more or make a first buy.

Auckland International Airport[AIA:NZ] A near monopoly with a beaten down stock price, buy on further weakness.

Westpac [WBC:NZ] and ANZ Bank [ANZ:NZ]. Good opportunities exist to buy at low stock prices.

If you have the nerve, any good company is going cheap in 2009 so there are plenty of companies worth buying.

Pick wisely!


Disclosure: I own RYM, FPH, PPL, AIA, and MFT shares


Share Investor's Annual Stock Picks


Share Investor's 2017 Stock Picks
Share Investor's 2014 Stock Picks
Share Investor's 2013 Stock Picks
Share Investor's 2012 Stock Picks 
Share Investor's 2011 Stock Picks
Share Investor's 2010 Stock Picks
Share Investor's 2009 Stock Picks
Share Investor's 2008 Stock picks

Broker Picks

Brokers 2014 Stock Picks
Brokers 2013 Stock Picks
Brokers 2012 Stock Picks
Brokers 2011 Stock Picks





c Share Investor 2008







Monday, April 28, 2008

Vector sale decision hangs on political knife edge


From the Share Investor Blog an article with a political bite which continues in the vein of The Labour Party and its inconsistent political decisions purely based on returning them to power regardless of the real consequences and the impression it gives the voting public at large.


The dilemma I would be facing now if I was a minister in the New Zealand Government is, if I gave to go ahead for the Hong Kong based, Cheung Kong Infrastructure Holdings (CKI) to buy 100% of Vector (NZ Herald story) energy's[VCT] lines infrastructure, in the Wellington region, then I would be going against a decision I made just a few weeks ago to refuse the sale of a non-controlling interest in Auckland International Airport[AIA], to a Canadian pension fund, thereby making me look like an utter plonker.

On the other hand If I turned down the sale of arguably a much more "strategic" asset, again Wellington region power line infrastructure, then I would put the Chinese Government's nose out of joint by reneging on detail of various free trade agreements made only a couple of weeks ago and again look like an utter plonker.



Lets face it, our government is at least consistent in its inconsistency.The vetoed sale of the airport and Vector's Wellington lines is the same scenario whatever way one cuts the cable.To say otherwise is to be just ever so slightly more than economical with the truth. For Helen Clark to give the reasons for a go ahead for a Vector sale that "the sale doesn't include any sensitive or strategic land" is a pure unadulterated lie. She made reference to the Airport sale over this "land issue" but that deal wasn't turned down because of "sensitive land", it was turned down for political reasons.



The issue of land rights in the Vector deal may actually be applicable. The power infrastructure and lines that Vector is selling has to have easements over the land they transverse thereby making Helen Clark's claim just a generator or two short of a full load.



It is hard to say what the Labour Government will do in the Vector case, but one can be sure it will be a purely political decision, rather than the financial one it should be, and once again the investing public is unsure about how their investments will be treated by such Governments in future takeovers.The consistency we investors need, especially during these tough economic times, is found wanting by the very authorities that are supposed to be instilling security and a level hand to one of the backbones of our economy-the stockmarket and the essential funds it provides for investment and economic expansion.



The university trained political plonkers who make these decisions have clearly not woken up to the fact that they are not working in theories anymore and the real world consequences of their ludicrous strokes of the pen is costing us millions.Vector is going to retire some of its large debt with the proceeds of the sale, ironically established when management went on a buying spree around 5 years ago and borrowed heavily to buy the Networks now up for sale off United Networks.



Worryingly, Micheal Stiassny, Board Chairman and his management are also looking to use proceeds to buy more infrastructure assets, probably "greener" forms of electricity assets, like wind turbines, in which they already have interests in. Stiassny and his crew don't have a good track record in management or the purchasing of assets.



Investors marked VCT shares down 1c to NZ $2.10 on average volume on today's news.



Related Share Investor Reading



Cullen's move on Auckland Airport has far reaching effects



Related Reading



Stiassny.org

NZ Herald report on Vector sale

www.vector.co.nz

c Share Investor & Political Animal 2008




Vector sale decision hangs on political knife edge

The dilemma I would be facing now if I was a minister in the New Zealand Government is, if I gave to go ahead for the Hong Kong based, Cheung Kong Infrastructure Holdings (CKI) to buy 100% of Vector Vector Ltd [VCT.NZX] lines infrastructure, in the Wellington region, then I would be going against a decision I made just a few weeks ago to refuse the sale of a non-controlling interest in Auckland International Airport[ Ltd [AIA.NZX], to a Canadian pension fund, thereby making me look like an utter plonker.

On the other hand If I turned down the sale of arguably a much more "strategic" asset, again Wellington region power line infrastructure, then I would put the Chinese Government's nose out of joint by reneging on detail of various free trade agreements made only a couple of weeks ago and again look like an utter plonker.

Lets face it, our government is at least consistent in its inconsistency.

The vetoed sale of the airport and Vector's Wellington lines is the same scenario whatever way one cuts the cable.

To say otherwise is to be just ever so slightly more than economical with the truth. For Helen Clark to give the reasons for a go ahead for a Vector sale that "the sale doesn't include any sensitive or strategic land" is a pure unadulterated lie. She made reference to the Airport sale over this "land issue" but that deal wasn't turned down because of "sensitive land", it was turned down for political reasons.

The issue of land rights in the Vector deal may actually be applicable. The power infrastructure and lines that Vector is selling has to have easements over the land they transverse thereby making Helen Clark's claim just a generator or two short of a full load.

It is hard to say what the Labour Government will do in the Vector case, but one can be sure it will be a purely political decision, rather than the financial one it should be, and once again the investing public is unsure about how their investments will be treated by such Governments in future takeovers.

The consistency we investors need, especially during these tough economic times, is found wanting by the very authorities that are supposed to be instilling security and a level hand to one of the backbones of our economy. The stockmarket and the essential funds it provides for investment and economic expansion.

The university trained political plonkers who make these decisions have clearly not woken up to the fact that they are not working in theories anymore and the real world consequences of their ludicrous strokes of the pen is costing us millions.

Vector is going to retire some of its large debt with the proceeds of the sale, ironically established when management went on a buying spree around 5 years ago and borrowed heavily to buy the Networks now up for sale off United Networks.

Worryingly, Micheal Stiassny, Board Chairman and his management are also looking to use proceeds to buy more infrastructure assets, probably "greener" forms of electricity assets, like wind turbines, in which they already have interests in. Stiassny and his crew don't have a good track record in management or the purchasing of assets.

Investors marked VCT shares down 1c to NZ $2.10 on average volume on today's news.


Related Share Investor Reading

Cullen's move on Auckland Airport has far reaching effects

Related Reading


Stiassny.org
NZ Herald report on Vector sale
Vector.co.nz

Vector Ltd @ Share Investor

Long Term View: Vector Ltd

Discuss VCT @ Share Investor Forum
Download VCT Company Reports




c Share Investor 2008