Hicl Infrastructure Share Discussion Threads

[jonwig] 19/5/2016 06:45

hiddendepths ... NAV is, for all its shortcomings, the best metric for me. The way it's calculated (net present value of future cashflows) is pretty reliable year-on-year, with the discount rate used not moving much.

Also, the infrastructure funds keep an eye on the discount rates used by each other so it becomes useful for comparison purposes.

The fact that some assets change hands way above this is probably a temporary factor brought about by low interest rates and the need by pension funds, etc. for reliable assets. That's why HICL and others are searching abroad for investments and taking on early-stage projects.

If not NAV, how to value? Eps fell from 18.6p to 11.9p (owing to the disposals above NAV you mentioned) so P/E ratio looks a bit volatile!

[skinny] 18/5/2016 15:52

A new high @166p.

[hiddendepths] 18/5/2016 15:47

Love this stock!

Don't get too hung up over the stated premium to asset value. Remember that the Colchester Garrison was sold at an 88% premium to book value a year or two back. I'm sure that the book value is very conservatively stated and it is likely that the shares are trading at a discount to the market value of the assets.

[jonwig] 18/5/2016 07:28

"Solid portfolio performance in line with projections" - I must have read that every year!

Interesting that they are moving outside the UK to a greater extent, and increasing the number of early stage development projects in their portfolio.
Both of these increase risk a bit, but standard UK PPP projects are getting very expensive.

Projected dividend next year 7.65p. NAV 142.2p so premium 15.5%.

[jonwig] 14/5/2016 08:22

FY Results are next Wednesday, Shavian.

[shavian] 14/5/2016 08:19

Been watching HICL for a while, and took the opportunity of the pull back to come in at 160p. Looks very solid, compared with a pretty shaky market.

[jonwig] 30/4/2016 06:36

What's up today? It's giving back some of the good run over the past few weeks - that's all, I think. And it did fall less than the market yesterday.

[hiddendepths] 29/4/2016 16:45

jonwig - belated response! Wealth managers love this stock and several I know put it in most of their clients' portfolios.

What's up today?

[yam114] 25/4/2016 15:38

Good day for this share.

[yam114] 22/4/2016 21:48

Nice share for difficult markets all time high and more to come. Great quarterly divi.

[nimbo1] 01/4/2016 12:13

The value of steady income is clearly on the way up. just annoying it hasn't waited for the ISA deadline to refresh.

[jonwig] 25/2/2016 14:23

hiddendepths - I didn't really understand your sentence: "This is truly a City insiders' stock!"

I'd have said not at all, though infra funds are not bulletin boards' hot favourites of course. The list in the header of substantial holdings is a bit out of date, but won't have changed much in substance: low risk equity income funds marketed to PIs and discretionary wealth managers (eg. Brewin).

There isn't much to say about today's statement; I think it's good to see expansion out of the UK, and I don't think EU investments would be affected either way by the referendum.

It's interesting to compare this with JLIF's statement today, where they are also bidding into Europe and (unlike HICL) want to increase gearing to do it - from 25% to 35% of total assets. (I don't know whether this would be permanent gearing, or be flushed out with periodic equity raises.) HICL's current gearing is 1.4%.

[sailing john] 25/2/2016 13:37

XD today 1.86p

[hiddendepths] 23/2/2016 14:12

OK, what's up?

This is truly a City insiders' stock! For me it's a long term safe haven.

[nimbo1] 09/2/2016 12:33

Thanks. WPCT is defying gravity at the moment. Biotech sell off continues and sentiment getting worse. So I think we will get our chance to find a decent entry point this year.

[nimbo1] 08/2/2016 15:38

jonwig it seems there are others out there sheltering today!

[nimbo1] 08/2/2016 12:18

Do you have any more on your watch list which pay a decent div and offer some diversification from the norm?

[nimbo1] 08/2/2016 12:04

I purchased it at IPO at sold when it was trading at 15% above NAV. I think it should be trading at a discount in current market conditions - only reason it is not is because of Woodfords excellent record. That said I like the trust and will own again at some point. At the moment it is hard to justify owning too much that isn't supported by a decent dividend IMO. Have you come across the Medicx fund? I purchased an equal holding there this am to HICL.

[jonwig] 08/2/2016 08:47

I see you're watching WPCT - as I am. I don't feel like buying until I know that they won't be trying to raise more funds, and ideally a healthy discount shows up!

[nimbo1] 07/2/2016 12:56

Everything looks very risky! One minute people panic selling and the next realise they need an income so have to own something. I am changing my portfolio to reduce things like worldwide healthcare trust which pays 0.79% and has had a good few years to things like this...hoping to diversify and shelter for less capital erosion and greater income. At some point fantastic buying ops will present themselves in risky assets like biotech. More QE could reverse that in fast order of course but I think we are not there yet. Some dry powder to hand if things get silly also a good idea I think.

[jonwig] 07/2/2016 06:26

That's my view, nimbo.

A rise in interest rates (if it ever happens!) wouldn't produce more than a wobble.
The possibility of retrospective government action ought to be ruled out or that would scare off much needed private investment in infrastructure.
Brexit (if) would hit share prices, but the fundamentals here shouldn't change.

[nimbo1] 06/2/2016 16:54

Is this a port in the storm? Hope so am increasing here.

[badtime] 26/1/2016 15:15

Cheers..I liked the way they fared in recent market volatility