Bought a few of these today at $3.75. I like them as a defensive stock in turbulent times and there is always the chance of a bid coming with them. Really good yield as well.

Well spotted opportunity, Gemma (as usual)

Now that the Alinta bust -up has happened, many shareholders now have :

A cash payout, plus Hold
APA - Australian Pipelines
BBW - Babcock & Brown Wind
BBP - Babcock & Brown Power
BBI - Babcock & Brown Infrastructure
BEPPA - a BBI converting preference share

APA is the industry leader in energy infrastructure with an interest in over 7,500 kilometres of gas transmission pipelines translating into a 25% share of Australia´s natural gas transmission market. Gas, whether natural or coal seam, continues to be the fastest growing energy source in Australia. Coal still dominates as the energy source for base load power generation. But, increasingly the growth of cogeneration and gas fired plants will see gas consumption increase at a faster rate than coal in the power generation industry. The portfolio is well positioned to share in this growth. Management is astute and conservative. Aspect Huntley have an Accumulate recommendation

Babcock & Brown Wind Partners (BBW) has interests in a globally diverse portfolio of wind energy generation assets. BBW’s portfolio comprises an interest in or agreement to buy 23 wind farms on three continents that have a total installed capacity of approximately 1,150MW located in Europe (33%), North America (24%) and Australia (43%). BBW was established in 2003 as a single asset private investment, and upon listing acquired the US assets and Olivo. No recommendation

Babcock & Brown Power (BBP) invests in a portfolio of power stations consisting of base load, intermediate and peaking power stations. BBP intends to develop a diversified portfolio of power station assets, both in Australia and internationally. BBP is managed by Babcock & Brown Power Limited and Babcock & Brown Power Services Limited. No recommendation

Babcock & Brown Infrastructure (BBI) is a stapled security over a trust containing transport and energy infrastructure assets and the company which manages the trust. The stock’s cash yield is high but distributions are fully tax-deferred and come off the investor's cost base for capital gains tax purposes. Distributions are likely to remain tax-deferred for at least two to three years. Distributions are paid out of a reliable and diversified stream of operating cashflows from regulated infrastructure assets with stable market shares. There are no distributions from Macquarie-style revaluations. BBI is highly geared and we expect more capital raisings. Rising bond yields would increase interest expense, although the effect is not strong. BBI is likely to demerge or sell major assets. A high-yield but low-growth investment. Aspect Huntley have an Accumulate recommendation.

So there may be some selling pressure on these holdings now. A lot of shareholders have sub economic or very small holdings in a diverse set of assets.


JBWere came out and said that APA was now about 13% under NTA and with prospect of increasing gas volumes, growth above CPI for pricing and takeover possibilities, put it as a Buy up from Hold.

And its another duopoly situation emerging

Gemma,
I looked at APA a few weeks ago but they are a stapled stock.
They are so damned complicated I found it a real headache.
I there a simple way of treating stapled stocks from a financial viewpoint.
cheers
Ian

I hold APA. Very very ordinary share price performance though over last couple of years.

big al wrote:I hold APA. Very very ordinary share price performance though over last couple of years.

I note that performance big al but I'm sure they are a very good buy at these levels. I've looked at them before and my "gut" said wait. Wait I did and they are now at a value price in my opinion. More later.

Initial Thoughts - APA Group (APA) FY10 Result

Result in line with our expectations with EBITDA of $460m (GS&PA $462m) and at the top end of guidance ($445-460m). NPAT of $100m was below our forecast (GS&PA $114m) given slightly higher interest and tax.

Key Drivers: Most segments performed in line with expectations with NSW transmission continuing to be the notable area of strength (EBITDA was up 16% on pcp) albeit we had factored this into our forecasts.

DPS guidance: APA provided FY11 guidance of 5% growth. We're at +4.6%, whilst the market is ~+4%.

EBITDA Guidance: FY11 EBITDA expected within a range of $465-485m. We are currently at $491m and consensus is at $485m.

Growth Opportunities: APA is focusing on "enhancing its portfolio of gas infrastructure assets in Australia’s growing gas market" and "capturing revenue and operational synergies from its significant asset base". This suggests the potential for new developments and acquisitions.

Balance Sheet: Gearing declined to 69.8% from 70.3% in pcp. APA has $538m of cash and committed undrawn facilities.

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still high gearing

APA was included in a (global? EAFA?) MSCI Infrastructure index - hence the 30c pop on Friday?

plus some of the debt is being rolled over successfully - this time into a Japanese Yen tranche - with longer time horizons, as befits infrastructure/ longer term contracts.

and with its "part shares/ part cash" takeover offer for HDF, the latter responded in kind

Thanks for that information, was wondering why it jumped.