# HDF - APA Sub Group



## It's Snake Pliskin (22 June 2007)

It appears this may be set to move on again. Simple trade management applies for me on this one..................


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## psychic (9 March 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

Time to bump this thread, major selling on HDF of late, what is going on?  Is this worth a trade at these levels?


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## dmagnus (9 March 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

this is getting hurt pretty bad....

mite be a good opportunity soon I think... or it may go the way of the other infra funds


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## skc (9 March 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

A good bunch of the infrastructure funds are being hammered in the last month.

Since start of Feb

The good 
ENV +7%
AGK -8%

The bad 
APA -10%
SPN -12%

The ugly 
CIF -28% 
SKI -33% 
DUE -35%
TSI -49% 
HDF -80%   

Some of these may be oversold, but which ones? Perhaps a smartly chosen pairs trade is the way to go...


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## psychic (10 March 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

...and still HDF continues to drop, when will the selling end?  My current average price is 31 cents, so I am sitting pretty


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## skc (12 March 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

Jumped back up to $0.4 yesterday - are you cashing in some chips, psychic?

A news article here... highlights quoted.

http://business.smh.com.au/business...-up-the-battle-of-hastings-20090311-8v9k.html



> However, the share price through January continued to show signs of being under pressure - sufficiently so that the ASX bowled the company a share price query.
> 
> In response to the usual ASX questions on whether the 2008 numbers would differ by 15 per cent or more came the bizarre response that it would do so in part due to the performance fee. Indeed, share price underperformance resulting from a fee for share price outperformance has to be a first.






> It was on March 5 that the company dropped the real bombshell, that the distribution for 2009 would fall to 12c a security.
> 
> The volumes traded in the two days before this announcement are worthy of further investigation by the regulators because they certainly suggest there was a whiff of this news floating about the market. And investors are within their rights to question why this information did not emerge in any of the announcements in the days and weeks earlier.


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## persistentone (5 June 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

So has anyone done an analysis on the offer TCW has made to buy Epic Energy from HDF?  

A key question for me in evaluating this offer is what will be the value of the South East Water company that HDF would be left with, absent its debt?   Are there any comparables for water companies in Australia that are currently trading as pure plays on water?   How are those companies valued on either a price to book ratio, or alternately as an enterprise value to EBITDA?

Where is the best place to find the current sales and earnings for South East Water, so we might start to put some valuation metrics around it?


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## persistentone (5 June 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

So my first pass at the TCW offer for Epic Energy suggests a few things:

1) Hastings probably doesn't want to sell the Epic Energy pipelines.   These pipelines are probably the crown jewel of the Diversified Utility Fund.   They are being forced to consider doing this only because they have $60M in debt due in August 2009 and it is a tough environment for funding.

So what happens if Hastings comes back in a month and announces that they are going to refund that $60M in debt and they no longer therefore need to sell Epic Energy?     Won't the HDF stock instantly crater from its current trading range back down to 30 cents?    That possibility alone makes this an unbelievably speculative investment, and one with relatively poor risk and reward with the HDF stock trading above even 75 cents.

2) TCW wants to suggest that shareholders will be left with $1.47 in value for South East Water after the transaction to buy Epic.   But are we really sure that the $1.47 will fall through into value for HDF?   Might not shareholders impair some of that $1.47 simply because of the annoying HDF habit to take out large fees?    Second, I'm seeing $521M of debt on the latest HDF balance sheet on Reuters.  Is that right?   So wont' HDF be left with large amounts of debt even after TCW assumes some of their loans, and won't that debt potentially impair some of the remaining $1.47 in value in South East Water?   

3) TCW is offering a big distribution directly to the shareholders, probably as a bribe to accept their proposal.   But what if HDF kicks back and decides it would rather get paid the money directly so it can invest it in some other activity for the shareholders.    It seems to me that TCW wants this pipeline and would probably agree to such terms.   That leaves the shareholders high and dry on the distribution part of the deal, and leaves any potential distribution subject to HDF's large fees.

It seems to me that the runup after release of the TCW proposal was mostly retail investors comparing the current HDF share price against the supposed $2.15 of value claimed in the TCW proposal.   But what can be argued on paper to be a $2.15 offer might actually materialize as something much less than $2.15 when measured in the final HDF share price.  

A runup of the HDF stock to over $1.50 seems potentially unjustified to me.  I am interested in hearing the counterpoints.


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## sdmartin10 (11 June 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

It is fairly clear why Hastings would want to hold on to part of Epic. They obviously see significant growth opportunities once they have access to capital.

As far as TCW's offer the big question has to be why they are so adamant to go outside of the current tender process. As you say they are nearly trying to bribe shareholders into supporting their proposal without even seeing what other options are out there.  Why do they care about a "whole of fund solution" they just want the asset. We may see Hastings as being compromised due to the revenue stream, I don't kid myself that TCW really is concerned about HDF shareholder value.

The question is if HDF can get 5x EBITDA for a 50% stake would they be a more valuable stock than losing the whole of Epic now at 10x. It seems like 50% might be enough to sort out their immediate debt issues and keep the upside. We will only know though once the other bids (assuming there are some) are revealed. There better be a better one or there will be big problems for Hastings.


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## persistentone (1 July 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

As predicted, HDF pulled the rug out.   It should be interesting to see how it trades, but it looks like (again) there was an insider leak and the stock absorbed much of the capital raising before it was announced.

The 52 page capital raising says on page 2:
"The net proceeds from the Offer...will be used to:
...
* cash cover HDF's hybrid securities...(TAPS, $110 million)"

So what do they mean by "cash cover"?  Does this mean they will simply keep paying interest when due, or does this mean they are going to call the security and pay it off in full?


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## sdmartin10 (1 July 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

110M is cash redemption. Be interesting to see how the share price responds tom. It wouldn't take much pressure for the stock to head under $1. 

I think the plan is pretty sound though. Epic is a great asset with a solid growth path. If stage 3 proceeds the outlook is very strong. If they sold to TCW I would be think the fund would have struggled.


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## persistentone (2 July 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

Why are they not allowing TAPS Trust to trade today?   Hastings Diversified appears to be trading, and is getting awfully close to the offering price.


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## So_Cynical (4 August 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

Brought into HDF today at 84 cents...i figure its good value considering the recent capital raising was done at 90 cents, and going forward HDF is in alot better shape than before the capital raising, assuming the distribution holds at 3 cents per quarter, its a pretty amazing return of over 14% PA....my first fund to


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## So_Cynical (22 September 2009)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> Brought into HDF today at 84 cents




7 or so weeks later and HDF trading at around $1.05 and looking good to deliver on the 12 cents per share PA distribution projection...great for those that were buying in at under 85 cents just 6 and 7 weeks ago. 

The chart seems to be building nicely...and one would think that 1.20+ would be likely considering the distribution return when compared to interest rates.


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## sdmartin10 (24 September 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

Nice return SC in 7 weeks not even considering the yield. Has held up okay today considering XD.

The real kicker is still Epic stage three and the funding conditions. Nearly doubles Epic cash flows with not much extra cost. Worth over $2 if they can gt decent financing for stage 3 (a big if).


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## So_Cynical (5 November 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

HDF in a trading halt today...expected to be lifted on Monday.

Perhaps a capital raising to pay for the pipeline expansion or perhaps some news on the sale or non sale of Epic or perhaps some news about TAPS. :dunno:


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## $20shoes (11 November 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

Chugging along this morning. Having been watching this one for a while. Could be setting the stage for a broader move upward. A lot of supply was removed the last couple of months.


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## $20shoes (11 November 2009)

*Re: HDF - Hastings Diversified Utilities Fund*



$20shoes said:


> Chugging along this morning. Having been watching this one for a while. Could be setting the stage for a broader move upward. A lot of supply was removed the last couple of months.




Faded like a two pot screamer  tight stops now, as she exhibited a lot of weakness today. et cetera et cetera


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## sdmartin10 (11 November 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

first time it cracked 1.10 though and sell side is still thinnish. still think 1.20 is a realistic short term goal. assuming they can manage the stage 3 development well, and the rumours of 18% are not for the entirity of the project finance then I think 1.50+ in 12 months.

Epic Stage 3 is a fantastic project. Sell SE Water to reduce debt, get rid of the RE and we have a fantastic single asset COY.


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## So_Cynical (11 November 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

Orbis Australia is a big fund manager that has HDF as its number 1 holding with over 20 mill invested...In there last quarterly report they have a bit of a write up on HDF and thought i would share.

Ill do a little quote then link....u need to scroll down a few pages.



			
				link said:
			
		

> Unlike many other utilities in Australia, HDF’s accounts give a fair reflection of the underlying business and its cash flows. The cash flows which HDF generates from its pipelines are sustainable, require no financial engineering and will grow with CPI given the nature of its contracts.




http://www.orbisfunds.com.au/reports/SMEF-QuarterlyReport2009Q3.pdf


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## $20shoes (11 November 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

There's no denying she's a pedigree stock. Pays well too!! 
However, if you are trying to place your trade in front of some momentum, the wind was taken out of her sails today on heavy volume. Seems capped around the $1.10 mark with a potential medium term double top. 
I would be more bullish if she could hold above $1.04 for a few trading days before having another crack. 

Long term Buy and Holders would no doubt be looking for an income stream - I wouldn't pay any heed to my short term focus if that's your game.


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## So_Cynical (11 November 2009)

*Re: HDF - Hastings Diversified Utilities Fund*



$20shoes said:


> Long term Buy and Holders would no doubt be looking for an income stream - I wouldn't pay any heed to my short term focus if that's your game.




I'm getting a 14%+ return for simply backing my judgement....i could care less what the traders do. :cowboy: Just watch HDF break out now.


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## $20shoes (11 November 2009)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> I'm getting a 14%+ return for simply backing my judgement....i could care less what the traders do. :cowboy: Just watch HDF break out now.




HAHA precisely...talk it up for me  it is hard to beat that kinda return. Great one for SMSF and those who buy and hold on fundamentals.


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## So_Cynical (18 November 2009)

*Re: HDF - Hastings Diversified Utilities Fund*

HFD announced today that the South West Queensland Pipeline Stage 3 expansion is now fully funded (subject to finalisation of documentation) via a senior debt facility.

http://data.iguana2.com/hastings/news-item?Number=328267&Code=HDF

Blue sky's?


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## Tysonboss1 (21 January 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

I only learned of this company when APA took a 3% holding, I think if the authorities allowed such a deal APA would love to take over this little gem. HDF's piplines are a perfect fit in APA's existing pipline portfolio, and at current prices they are picking them up at a bargain rate.

I was actually thinking of increasing my holdings in APA, but having researched HDF I may put the funds into HDF (how ever APA does offer the better yield at the moment by about 2%.) But if HDF reinstated the higher div it will smash the yield on apa. I have a bit of thinking to do on this one.

I am also a little cautious of these type of financial company run infrastructure investments in the wake of Babcock and brown etc.etc where as APA are a self managed entity.

Does anyone know what the current yeild on the prefrence share is (ttxpa). I think it is 2% above the 90 day bank bill rate. Whats the easiest why to find out the 90 day bank bill rate.

I have noticed that HDF has cut their dividend from from 22c to 12c, But as far as I can see they still have the free cashflow of 22c but are choosing to use the extra 10c to reduce debt, which is great in my book.


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## akkopower (21 January 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



Tysonboss1 said:


> Whats the easiest why to find out the 90 day bank bill rate.




http://www.macquarie.com.au/macsecmc/codi/CodiServlet?nav=start&documenttosend=income_security_doc

as the price of the hybrids are updated daily i am pretty sure the bbsw is also


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## So_Cynical (21 January 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



Tysonboss1 said:


> Does anyone know what the current yeild on the prefrence share is (ttxpa). I think it is 2% above the 90 day bank bill rate. Whats the easiest why to find out the 90 day bank bill rate.
> 
> I have noticed that HDF has cut their dividend from from 22c to 12c, But as far as I can see they still have the free cashflow of 22c but are choosing to use the extra 10c to reduce debt, which is great in my book.




Hey Tyson...don't know about the yield for TTXPA - TAPS but i do know management were going to pay them out a few months ago but changed there mind and decided to just hang on to the money...one reason they hung on to the TAPS payout money was because the stage 3 financing wasn't finalised at that time.

So now that funding is in place they mite decide to buy out TAPS again :dunno: or issue more to cover the new debt...these guys change there mind a fair bit. 



So_Cynical said:


> 22nd-September-2009,
> The chart seems to be building nicely...and one would think that 1.20+ would be likely considering the distribution return when compared to interest rates.




HDF traded at 1.20 just a few days ago...We really do need a pat on the back smiley....yet another one i got right.


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## So_Cynical (19 February 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

HDF back above 1.13 today after a little dip over the last few weeks (same as everything else) also released there 2009 Annual Results and a Presentation and Outlook write up.

Highlights include

Epic Energy operating income up 25.2%
HDF EBITDA up 16.4%
SWQP expansion Currently on target - budget for completion January 2012

Interesting to also note from today's announcements is that Orbis Investments has increased 
there holdings in HDF to 15.52%

http://data.iguana2.com/hastings/news-item?Number=332466&Code=HDF


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## So_Cynical (8 April 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

HDF was today's biggest ASX200 mover (7.4%) after a big spike up on a very positive announcement from APA, they disclosed that they had increased there holding in HDF to 14.9% at an average price of $1.30 

APA also claim to have no interest in a takeover however made the proviso that "unless any future actions of HDF or others make it necessary for APA to protect the value of its investment in HDF."

http://www.apa.com.au/media/174681/2010 04 08 apa group increases holidng in hastings.pdf 

Interesting 
~


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## roland (8 April 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> HDF was today's biggest ASX200 mover (7.4%) after a big spike up on a very positive announcement from APA, they disclosed that they had increased there holding in HDF to 14.9% at an average price of $1.30
> 
> APA also claim to have no interest in a takeover however made the proviso that "unless any future actions of HDF or others make it necessary for APA to protect the value of its investment in HDF."
> 
> ...




Yes, the volume on HDF gave me a little shock today, until I saw that nearly all the volume was APA. I wonder why they  settled at $1.40 ? At least it benchmarked the SP value - well, as far as APA was concerned.

I suppose if you wanted $50mil worth of stock on the open market then you take what is available - hence the $1.40 final price.

Sounds silly, but I kind of like the fact that dividends are paid quarterly, and I am tempted to hold as a growth exercise.

10% annual return compounded with an anticipation of higher percentage returns as time goes on makes buy/hold/reinvest quite compelling

Maybe I should get some more


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## roland (18 May 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

Interesting changes amongst the major holders. Australian Pipeline increased their holdings by 10Mil and Orbis reduced by around the same figure both on the 14th May.

Almost sounds like a cross trade.

Nice resistance level at $1.38, if we can get through this we may grab another $0.10


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## So_Cynical (26 October 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

HDF hit a $1.50 today for the first time in 20 months :dance: on the back of yesterdays announcement about the 15 year gas transportation agreement with Santos, turns out STO will need to transport gas to its part owned GLNG development on the Qld coast...who would of thought that one of Australia's biggest gas producers would need to transport gas from the biggest onshore gas field in Australia to the nearest coastal port....

http://data.iguana2.com/hastings/news-item?Number=344249&Code=HDF

So HDF are gona do a little work to the pipeline to facilitate gas being able to be shipped in both directions....i love pipelines because i love monopoly's especially monopoly's that cant realisticl'y be duplicated...and im done averaging up, no more distribution reinvestment.
~


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## roland (26 October 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> HDF hit a $1.50 today for the first time in 20 months :dance: on the back of yesterdays announcement about the 15 year gas transportation agreement with Santos, turns out STO will need to transport gas to its part owned GLNG development on the Qld coast...who would of thought that one of Australia's biggest gas producers would need to transport gas from the biggest onshore gas field in Australia to the nearest coastal port....
> 
> http://data.iguana2.com/hastings/news-item?Number=344249&Code=HDF
> 
> ...




Your entry was a little better than mine, so I'll give it at least another year of distribution reinvestment.


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## So_Cynical (25 November 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

More good news for HDF today  with the Beach Energy, Itochu announcement of there intentions to (explore the possibility's) of building a billion-dollar liquefied natural gas export facility in South Australia.

http://www.adelaidenow.com.au/busin...-south-australia/story-e6frede3-1225960790440

HDF's Epic Energy owns and operates the only Gas pipeline from the Cooper Basin to Adelaide imp: also remember reading how that particular pipeline actually has quite a bit of spare capacity....so all going according to plan, HDF will transport Gas for export from the Cooper basin for Santos and Beach in two directions to 2 different export facility's. :

http://bpt.irmau.com/IRM/Company/Sh...OCHU investigate LNG facility locations in SA


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## So_Cynical (30 November 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

And the share price drivers just keep on coming...APA announced today that they have increased there share holding in HDF to almost 20%  buying around 3% of the issued stock in HDF over the last 6 or so months...there even participating in the distribution reinvestment plan!

http://www.asx.com.au/asxpdf/20101130/pdf/31v974k779y28s.pdf


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## roland (17 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

Does this part of HDF's announcement mean $0.09 per quarter in distributions, or $0.09 for the whole year?




> HDF maintains its policy of making distributions from operating cash flows. Underlying free operating cash flow per
> security following the sale of the SEW investment will support a distribution of 9 cents per security in 2011, however
> actual distributions per security in 2011 will be influenced by the return made on the cash receipts and the final
> decision as to the utilisation of the proceeds from this transaction


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## So_Cynical (17 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

HDF was today's biggest ASX200 mover up over 6% on the back of the sale of its investment in SEW - South East Water for A$206 million...the realisation of proceeds equivalent to 40 cents per security.

http://data.iguana2.com/hastings/news-item?Number=347634&Code=HDF



roland said:


> Does this part of HDF's announcement mean $0.09 per quarter in distributions, or $0.09 for the whole year?




From memory the investment in SEW accounted for about 3 cents per year of the distribution payment...thus HDF can only afford to pay 9 CPS not 12 CPS, on the capital growth side of the equation, post the SEW sale they will be sitting on around 300 million in cash.

You cant deny that the market liked today's news.


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## roland (18 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> HDF was today's biggest ASX200 mover up over 6% on the back of the sale of its investment in SEW - South East Water for A$206 million...the realisation of proceeds equivalent to 40 cents per security.
> 
> http://data.iguana2.com/hastings/news-item?Number=347634&Code=HDF
> 
> ...




Must be time then, to stop averaging up with the dividend roll overs. HDF have had a stella run. It's a bit sad to see the div yield go backwards


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## So_Cynical (18 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



roland said:


> Must be time then, to stop averaging up with the dividend roll overs. HDF have had a stella run. It's a bit sad to see the div yield go backwards




True i will miss the extra 3 CPS but this deal means that HDF is sitting on a pile of cash and that cash gives them options.


A buy back
A Special dividend
A return of Capital (maybe tax free)



			
				HFD ann said:
			
		

> HDF maintains its policy of making distributions from operating cash flows. Underlying free operating cash flow per security following the sale of the SEW investment will support a distribution of 9 cents per security in 2011, however actual distributions per security in 2011 will be influenced by the return made on the cash receipts and the final decision as to the utilisation of the proceeds from this transaction




What ever happens...in the short term there gona be earning 5 or 6% on that money, fingers crossed they time the change over to AUD well.


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## danbradster (29 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

A capital return of $0.40 CPS would be awesome.

I vaguely remember it being like this - "the sale *won't decrease EBIT* and it will release $0.40 CPS capital, probably to be used for improving the more profitable assets".  I could be wrong though, it's a vague memory.

I am liking HDF.



So_Cynical said:


> True i will miss the extra 3 CPS but this deal means that HDF is sitting on a pile of cash and that cash gives them options.
> 
> 
> A buy back
> ...


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## So_Cynical (29 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



danbradster said:


> A capital return of $0.40 CPS would be awesome.




Yes and no...a return of capital of $0.40 CPS mite be somewhat awesome but almost certainly would also be share price negative after the ex-date...and then again it mite lead to a great opportunity to pick up some more HDF shares at a significant (20-30%) discount. :dunno:

I'm also thinking that a fund calling its self "diversified" probably needs to actually be a little diversified...1 possible outcome could be a partial float of Epic energy with HDF keeping 55% or so as a long term investment/revenue stream, thus retaining control while freeing up a large chunk of capital for the fund to get diversified. :dunno:


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## danbradster (31 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> Yes and no...a return of capital of $0.40 CPS mite be somewhat awesome but almost certainly would also be share price negative after the ex-date...and then again it mite lead to a great opportunity to pick up some more HDF shares at a significant (20-30%) discount. :dunno:
> 
> I'm also thinking that a fund calling its self "diversified" probably needs to actually be a little diversified...1 possible outcome could be a partial float of Epic energy with HDF keeping 55% or so as a long term investment/revenue stream, thus retaining control while freeing up a large chunk of capital for the fund to get diversified. :dunno:




I realize the SP would fall after ex-return, although it could easily rise leading up to that if they announced in advance.  The part I love is the no-tax part!


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## skc (31 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



danbradster said:


> I realize the SP would fall after ex-return, although it could easily rise leading up to that if they announced in advance.  *The part I love is the no-tax part!*




You do realise that it has no tax because it is a capital return?   

Buy HDF @ $1.70 before ex-date and get 30c captial return. Wow. A 17% tax free return in a week!!!

OR

Buy HDF @ $1.40 after ex-date.

Any difference between the two scenario is simply the movement in the HDF share price leading up to the ex-date. And that movement may or may not be upwards...


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## roland (31 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*



skc said:


> You do realise that it has no tax because it is a capital return?
> 
> Buy HDF @ $1.70 before ex-date and get 30c captial return. Wow. A 17% tax free return in a week!!!
> 
> ...




Hi skc, is HDF really a capital return? It doesn't seem to be stated anywhere. I've been rolling it over as a taxable distribution. Is it really tax deferred?


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## roland (31 December 2010)

*Re: HDF - Hastings Diversified Utilities Fund*

OK, answered my own question, it's no longer tax derferred:


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## absolute1 (5 January 2011)

*Re: HDF - Hastings Diversified Utilities Fund*

http://www.financial-partners.biz/australian/hartleys/hartleys.pdf

page 4 states that its a possible takeover target


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## skc (5 January 2011)

*Re: HDF - Hastings Diversified Utilities Fund*



roland said:


> OK, answered my own question, it's no longer tax derferred:




Missed your post/question earlier. 

What you see on the ASX website is their regular dividends with tax status as stated.

The money I was talking about refer to a potential speical one-off distribution/capital return from their recent asset sale.


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## roland (5 January 2011)

*Re: HDF - Hastings Diversified Utilities Fund*



skc said:


> Missed your post/question earlier.
> 
> What you see on the ASX website is their regular dividends with tax status as stated.
> 
> The money I was talking about refer to a potential speical one-off distribution/capital return from their recent asset sale.




Oh, I didn't know that was cast in mud, a capital return ...... I'll vote for that!


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## So_Cynical (21 March 2011)

*Re: HDF - Hastings Diversified Utilities Fund*

With today's announcement the distribution reduction is official, also no surprise that the distribution reinvestment plan has been suspended.



			
				HDF announcement said:
			
		

> As a result of HDF’s current cash reserves and fully funded operating position




Quarterly distribution of 2.50 cents per security...some scope for this to be maintained i would think :dunno: 

http://data.iguana2.com/hastings/news-item?Number=352235&Code=HDF


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## So_Cynical (6 October 2011)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> (4th-August-2009) Brought into HDF today at 84 cents...i figure its good value considering the recent capital raising was done at 90 cents, and going forward HDF is in alot better shape than before the capital raising, assuming the distribution holds at 3 cents per quarter, its a pretty amazing return of over 14% PA....my first fund to




Took some profit/established free carry in HDF today...mixed feelings as this stock has been very good for me, but felt it was time to free up some capital and complete stage 2 of this now 2 year old trade. 

92.58% profit on my original parcel of shares + a distribution return of about 28% over the 2 years ive held. :bier: because of the size of my profit ive been able to hold on to about half my shares that will now be moved into the hold part of my portfolio for long term yield and cap growth.

HDF's only remaining business has a big future in my opinion and i am more than happy to hold my remaining shares for the long term...im very keen on almost anything gas.


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## skc (7 October 2011)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> Took some profit/established free carry in HDF today...mixed feelings as this stock has been very good for me, but felt it was time to free up some capital and complete stage 2 of this now 2 year old trade.
> 
> 92.58% profit on my original parcel of shares + a distribution return of about 28% over the 2 years ive held. :bier: because of the size of my profit ive been able to hold on to about half my shares that will now be moved into the hold part of my portfolio for long term yield and cap growth.
> 
> HDF's only remaining business has a big future in my opinion and i am more than happy to hold my remaining shares for the long term...




That's a nice trade. HDF will probably eventually find a home under APA which had been busy with wind and gas of its own.



So_Cynical said:


> im very keen on almost anything gas.




Here you go.


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## So_Cynical (14 December 2011)

*Re: HDF - Hastings Diversified Utilities Fund*

The reason for the sharp move up in the HDF share price over the last month has been revealed....APA have announced a take over offer..ill quote the ann below.



			
				APA said:
			
		

> Hastings Funds Management Limited (HFML) has today been advised that APA Group intends to make a takeover offer for all the securities of HDF it does not own, at a price of 0.326 APA Group Stapled Securities and $0.50 cash per HDF Security




Supposedly valuing HDF at $2 per share....ive always wanted to own some APA shares anyway so im ok with this.

http://www.asx.com.au/asxpdf/20111214/pdf/42382zrpvqrvtk.pdf


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## PT Cruiser (14 December 2011)

*Re: HDF - Hastings Diversified Utilities Fund*

Have had this in my portfolio for a fair while just collecting dividends, been a solid stock through some tough times, but when $1.90 arrived I couldnt help but sell it!


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## skc (15 December 2011)

*Re: HDF - Hastings Diversified Utilities Fund*



skc said:


> That's a nice trade. HDF will probably eventually find a home under APA which had been busy with wind and gas of its own.






So_Cynical said:


> The reason for the sharp move up in the HDF share price over the last month has been revealed....APA have announced a take over offer..ill quote the ann below.
> 
> Supposedly valuing HDF at $2 per share....ive always wanted to own some APA shares anyway so im ok with this.




The $2 per share is a little bit mis-leading, as APA goes ex-div next week for 17.4c and HDF holders are not entitled to that dividend. Further the offer is reduced by the HDF distribution after 14 Dec. This means the real value of HDF on today's APA close of $4.57 is only ~$1.93.


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## So_Cynical (15 December 2011)

*Re: HDF - Hastings Diversified Utilities Fund*



skc said:


> The $2 per share is a little bit mis-leading, as APA goes ex-div next week for 17.4c and HDF holders are not entitled to that dividend. Further the offer is reduced by the HDF distribution after 14 Dec. This means the real value of HDF on today's APA close of $4.57 is only ~$1.93.




^Yep i noticed that to...bit cheeky hey.

------------------

HDF holders also have to consider that i reckon we are in a round about way buying APA shares at the top of there range, not a place that i would be comfortable buying at.

No big deal if the HDF board rejects the offer...kinda hope they will.


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## So_Cynical (22 December 2011)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> No big deal if the HDF board rejects the offer...kinda hope they will.




I got an official email from HDF/computershare today...turns out the board has rejected the offer..see below.



			
				HDF said:
			
		

> Your Board considers that APA Group’s highly conditional offer undervalues HDF securities and advises you not to accept it because:
> 
> The offer does not account for HDF’s significant cash flow growth that is both contracted and prospective.
> 
> ...




I reckon APA will sweeten the deal.


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## Tysonboss1 (20 January 2012)

*Re: HDF - Hastings Diversified Utilities Fund*

The Apa deal would provide the HDF shareholder with a higher dividend yield, a Higher free cash flow per share, a greater mix or assets and would take them from being owners of a non operated fund, to owners of a owner operated business.

The assets will be more profitable under Apa ownership.

I think the HDF shareholders will be better off with the combined company.

Offcourse the board and HDF management will not aggree, Their jobs depend on the deal not going through.

I think APA manage HDF's pipelines anyway, So why not cut out the middle men ( the HDF Fund Managers)

I disclose that I own APA shares and have always thought the HDF portfolio would be a great fit for apa.


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## Tysonboss1 (20 January 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



PT Cruiser said:


> Have had this in my portfolio for a fair while just collecting dividends, been a solid stock through some tough times, but when $1.90 arrived I couldnt help but sell it!




the deal would take you from 5.5% dividend to 7.5%,


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## So_Cynical (20 January 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



Tysonboss1 said:


> The Apa deal would provide the HDF shareholder with a higher dividend yield, a Higher free cash flow per share, a greater mix or assets and would take them from being owners of a non operated fund, to owners of a owner operated business.
> 
> The assets will be more profitable under Apa ownership.
> 
> ...




Agree...however i want $2.25 per share (equivalent) and wont sell for anything less..Epic energy would be the jewel in APA's crown.


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## Tysonboss1 (21 January 2012)

*Re: HDF - Hastings Diversified Utilities Fund*

Moomba to Sydney is the jewel,


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## So_Cynical (21 January 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



Tysonboss1 said:


> Moomba to Sydney is the jewel,




Oh so Sydney has an export gas facility?


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## Tysonboss1 (21 January 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> Oh so Sydney has an export gas facility?




No, but the population of Sydney and the interconnected Victorian network absorb many times more gas than any export facility, add the amount of gas fired power generation under development in Nsw and Vic, 

Moomba sydney is moving more gas everyday that any other pipeline,


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## So_Cynical (21 January 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



Tysonboss1 said:


> No, but the population of Sydney and the interconnected Victorian network absorb many times more gas than any export facility, add the amount of gas fired power generation under development in Nsw and Vic,
> 
> Moomba sydney is moving more gas everyday that any other pipeline,




Victoria is also interconnected via the HDF pipeline to Adelaide.

List of Central QLD Export LNG Projects


Aust Pacific LNG Project, Curtis Island at Gladstone, Origin and ConocoPhillip
Gladstone Liquefied Natural Gas Project, Gladstone, Santos and PETRONAS
Gladstone LNG Project - Fisherman's Landing, Arrow Energy and Gladstone LNG 
Queensland Curtis LNG, Gladstone, QGC  & BG Group  

http://www.energyskillsqld.com.au/i...ied-natural-gas-industry/csglng-in-queensland

Export facility's = growth and exposure to global markets...the HDF pipeline is the only way to get Cooper basin conventional and shale gas to those export markets.


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## Garpal Gumnut (21 January 2012)

*Re: HDF - Hastings Diversified Utilities Fund*

APA are having some problems with the board of HDF accepting their takeover offer.

There was an article in the Australian today, I don't have the link to hand.

If APA can take this out, they will be well set for the future.

gg


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## Tysonboss1 (21 January 2012)

*Re: HDF - Hastings Diversified Utilities Fund*

Those projects have 10 and 20 year contracts with the qld csm boys, but any way I am not saying it not a wonderful asset, just say it is no where near the capacity of moomba Sydney, and it will take 10 years worth of expansion and looping projects to match moomba.

Either way both great assets, no doubt about that, and the combined entity would be better.


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## So_Cynical (21 February 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



PT Cruiser said:


> Have had this in my portfolio for a fair while just collecting dividends, been a solid stock through some tough times, but *when $1.90 arrived I couldnt help but sell it*!




HDF trading above $2.15 again today, still with no Acceptance or change in substantial holder announcement from APA...anyone want to speculate on who's buying and why? is it as simple as the market thinks the APA offer is unrealistic and they will have to bid substantially more to get control? above $2.15? :dunno:
~


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## So_Cynical (16 May 2012)

*Re: HDF - Hastings Diversified Utilities Fund*

HDF touching a new 3 and a half year high of $2.40 yesterday and today on the back of a rival take over offer....A consortium called Pipeline Partners Australia has made an all cash offer of $2.35 per share.

http://www.asx.com.au/asxpdf/20120515/pdf/42689v3lb4fycr.pdf

Tax wise not a great time for me to realise such a large Cap Gain, but i sure would like to free up a chunk of cash to throw into the market...i mite just think about it for a week or so.


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## skc (16 May 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> HDF touching a new 3 and a half year high of $2.40 yesterday and today on the back of a rival take over offer....A consortium called Pipeline Partners Australia has made an all cash offer of $2.35 per share.
> 
> http://www.asx.com.au/asxpdf/20120515/pdf/42689v3lb4fycr.pdf
> 
> Tax wise not a great time for me to realise such a large Cap Gain, but i sure would like to free up a chunk of cash to throw into the market...i mite just think about it for a week or so.




These bidders are pretty serious so you can easily delay your capital gain tax event to next financial year without too much risk imho.


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## So_Cynical (31 May 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



So_Cynical said:


> (*4th-August-2009*) Brought into HDF today at *84 cents*...i figure its good value considering the recent capital raising was done at 90 cents, and going forward HDF is in alot better shape than before the capital raising, assuming the distribution holds at 3 cents per quarter, its a pretty amazing return of over 14% PA....my first fund to




I totally sold out of my HDF position today ($2.40) my remaining 3 parcels consisting of mostly my original parcel (quote) and the cheapest 2 dividend reinvestments (see chart) close to 3 years in the trade for a profit of 176% ~ with distributions it would be a little over 200%  
~





~

Mixed feelings as this has been an amazing stock for me, the only stock where i let the profits run, mostly cos the distribution yield was just so damn good...mixed feeling also because i will now certainly have to deal with another large tax bill this year as my FY income has just gone up 9% due to this exit.

I just feel this market bottom wont last as long as last years...so need to move on and there's so many great cheap stocks at the moment.

Good luck to the HDF holders going forward.


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## Gringotts Bank (21 August 2012)

*Re: HDF - Hastings Diversified Utilities Fund*

Any fundamentalists still following this? 

Thanks.


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## skc (21 August 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



Gringotts Bank said:


> Any fundamentalists still following this?
> 
> Thanks.




What do you want to know? It's recommended a deal with APA so that's probably the end of the story for them.


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## Gringotts Bank (21 August 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



skc said:


> What do you want to know? It's recommended a deal with APA so that's probably the end of the story for them.




Thanks.

Do you think there's any upside potential in the price?


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## McLovin (21 August 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



Gringotts Bank said:


> Thanks.
> 
> Do you think there's any upside potential in the price?




It's highly unlikely that a new bidder will emerge now. And the board has recommended the offer to shareholders.


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## skc (21 August 2012)

*Re: HDF - Hastings Diversified Utilities Fund*



Gringotts Bank said:


> Thanks.
> 
> Do you think there's any upside potential in the price?




Not from new bidder, but it's a cash and script deal so if APA rises, HDF will move in line. APA reporting soon.


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