Hicl Infrastructure Share Discussion Threads

[spectoacc] 03/10/2017 09:23

PFI is a farce, but it's a farce all govnts seem to go along with - public works without the public debt. The calculations are twisted to make it more cost-effective when it rarely is in reality.

So I'm no fan of PFI, but I'm much less a fan of Corbyn, McDonnell, and the hard-left communist clowns behind them.

Is far from impossible it'll be President Corbyn & Comrade McDonnell in charge in 4 years time, but I'll cross that bridge (probably to Australia, if the bridge is long enough) when we come to it.

A collapse in the £ & resurgent inflation may yet counter the confiscation of UK PFI for the likes of HICL.

[skinny] 03/10/2017 09:18

"Corbin" & "invest" - an oxymoron surely! :-)

[schofip] 03/10/2017 09:16

An interesting thought. If all these companies doing PFI projects are making so much money why don't the british government under Jeremy Corbin invest pubic money in the shares. Everybody happy Sounds like a no brainer.

[holts] 02/10/2017 16:42

What twisted accounting would allow labour to take on all these burdens without having to take them on to the UKs books ? never mind the cost of compensating the current holders , the extra liabilities that come with it , pensions alone make it impossible , surely ? although I appreciate they are liable for some pensions already .

[jonwig] 02/10/2017 16:03

Personally, I can't get exercised over these threats. Apart from the impracticality of the agenda, the Labour party isn't yet unified behind the marxists - there are enough moderates to dilute the maddest policies (for now, anyway until enough deselections have happened). The main factor preventing them, though, would be the ECJ which Labour would have to adhere to if it wanted the kind of access it seeks.

It might be worth thinking what HICL might do now that it can't realistically raise new equity in the way it's accustomed. Perhaps it can find buyers for some UK PFI projects (at a discount) and recycle into overseas ones? What would put me off would be if it took on extra debt to fund acquisitions.

[spectoacc] 02/10/2017 13:32

All fair points, but the fact the Tories know they may lose means we've another 4.5 years of them I reckon.

And if Labour aren't going to do PFI, they can only borrow/print (taxing more won't raise much more, and certainly not nearly enough). That means inflation, and a lot of HICL returns are index-linked.

Whether it (or any of them) should be trading at a premium is another matter.

[schofip] 02/10/2017 13:29

Yes I have decided to step out as well.
Putting Labour policies aside for a moment. We currently have higher interest rates around the corner and a cash raising exercise in the pipeline. On top of that with the pound under pressure it is going to be more expensive to bid for projects in other countries.

If the prospect of new PFI projects are not going to be available in the uk, assuming a labour win (and to be quite honest I think the tories are in complete disarray under Theresa may), I am not sure where the share price may end up.

[apollocreed1] 02/10/2017 11:03

I think it's an overreaction. They'd have to pay adequate compensation to avoid a currency Crisis. Check out this article hxxp://moneyweek.com/473654-2/

[hiddendepths] 29/9/2017 11:29

Seems that someone belatedly notice McDonnell's threat. Good job that the party line is a long way removed from what he said - and that they distanced themselves from his comments pdq!

[spectoacc] 27/9/2017 10:03

I topped up too - it still isn't cheap, & still needs to raise cash sometime, but HICL got plenty of foreign exposure - that'll be good when the pound turns to pence under the Corbynistas :)

[edwardt] 27/9/2017 09:56

well I topped up today. he promises to unwind a promise - bring pfi in house,back on balance sheet, good luck with that.

[mw8156] 26/9/2017 22:36

mcDonnell lost any credibility as a politician after he allegedly refused to apologise for his alleged comment that Esther McVey should be lynched at the last election...

[markth] 26/9/2017 15:55

I'm in JLIF HICL 3IN and GCP. My pension income relies on these sorts of funds. I bet those bar stewards shorted the sector before that announcement.

[apollocreed1] 26/9/2017 13:57

hxxp://citywire.co.uk/investment-trust-insider/news/labour-threat-to-seize-pfi-assets-hits-infrastructure-funds/

[jonwig] 26/9/2017 12:44

Spec - whilst I'm sure they're capable of anything - in principle - the EU might be our saviour. It looks like what they want is to leave but have everything. To get anywhere near that they would need to accept the supremacy of the ECJ, which doesn't seem to be a debating point with Labour. Whilst I don't know my EU treaties and directives as well as I ought to (cough!) I'd have thought there would be big challenges which could take years to resolve.

[spectoacc] 26/9/2017 12:36

@riverman77 - they'll print, they won't borrow (they won't be able to). Confiscation will be the order of the day.

[essentialinvestor] 26/9/2017 12:23

I don't necessarily see the abolition of ISA's.
A reduced allowance and perhaps a dividend tax applying to amounts
over certain levels, that have already been sheltered in ISA's.
Worth keeping in mind that McDonnell is to the left of Corbyn.

[riverman77] 26/9/2017 12:22

Anything along the lines of confiscation would see the UK become a deeply unattractive place to invest in (think Argentina) pushing government borrowing costs sharply higher. Given that Labour would need to borrow vast amounts through government bond markets to finance its spending plans I just don't see a confiscation type scenario playing out.For these reasons I see this as an over reaction, but these funds are likely to stay under pressure for the time being given the negative speculation.

[belgraviaboy] 26/9/2017 12:18

All existing PFI contracts to be settled in Venezuelan Bolivars as we align with Momentum's Socialist idil

[holts] 26/9/2017 11:52

No no no Belgravia you don't understand , they are going to fund everything either by confiscation (will not be called that) or taxation of all those nasty people who are careful enough to be prudent (Gordon liked that word , but he was a nasty PFI man anyway )or sensible with their money , ISAs will be first in line , you must not save or invest for reward .

[belgraviaboy] 26/9/2017 11:45

Labour just ensured any new PFI contracts negotiated will be looking for a greater margin of safety - i.e. they will be more expensive for the government and taxpayer

[jombaston] 26/9/2017 11:11

Definitely a reaction to the shadow Chancellor's speech.

He has made an explicit threat to PFI investors. But there is an implicit threat to any private ownership of productive assets.