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APA - APA Group

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Dutchy3

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5 January 2006
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Hardly be it for me to suggest yet anothery that I now consider a buy .... Bit of good news and it's had its rest 5.10 + this time?
 

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Re: APA - Australian Pipeline

I'm still long and taking some pain ... anyone suggest why this stock is bounce along against lows again ... It broke out! I saw it!!!
 
Re: APA - Australian Pipeline

Ive been watching the trades a bit this morning and there seems to be a Sell spread being done, probably an Institutional.

Someone seems to be offloading perhaps.

Think there may be a change in substantial shareholiding notice to follow.
 
Re: APA - Australian Pipeline

I just bought into this when I thought the price was right.

As an ex Gasnet holder (prev asx GAS) I was disappointed to lose such a solid high yielding stock. Since APA bought them and have a similar yield and business I got in (gas - cant go wrong, fuel always required and this is set to expand as oil and coal become expensive and environmentally unfriendly).
 
Re: APA - Australian Pipeline

My partner has held APA since $3 days, not a bad one, pretty conservative though, strong steady growth for the long term. This is one for the back pocket not one for the watch list.
 
Re: APA - Australian Pipeline

Current Price for this stock seems very cheap,.... especially considering.

I have these as an accumulate below $3.00
 
Re: APA - Australian Pipeline

APA have a high level of debt, although alot of it is hedged, I would say that once they refinance the worst of the credit crisis will be gone, so all good for a rebound in SP given it's near year lows.
 
Re: APA - Australian Pipeline

I understand this is generally accepted as a good defensive stock, with a great yield. Am looking to pick up a few myself...

however one questions is with there eps vs there dps


Year to date 2007 2006 2005
Earnings (cents) 17.00 20.88 17.81
Dividends (cents) 28.00 30.00 22.50

how do they consistently pay out more in dividends than they earn??
is this through borrowing??
and is this sustainable??

just some things I haven't quite figured out yet
 
Re: APA - Australian Pipeline

doogie_goes_off said:
APA have a high level of debt, although alot of it is hedged, I would say that once they refinance the worst of the credit crisis will be gone, so all good for a rebound in SP given it's near year lows.
Click to expand...

Most of the debt doesn't mature for another 5 years,... and infrasture deals are not really having any trouble refinancing.
 
Re: APA - Australian Pipeline

As I see it there are three ways they could be paying the dividend they have done
1. By borrowing.
2. From reserves.
3. Sale of assets.(or a run down of assets)
Since any of these will reduce the fundamental value of the Company, I can't work out how they are a good defensive stock as you suggest. If I kept paying out more than I was earning I know what the result would be.
They may be writing down the value of pipelines for tax reasons faster than they are depreciating so that they may end up with little book value but still be great earners. Personally I prefer to judge earnings per share ahead of dividends per share.
They don't even make a watch list for me. But then I'm often wrong.
 
Re: APA - Australian Pipeline


Cause not all of the payments are dividends, some are capital distributions....

Their model is ok, plenty of free operating cash flow here so their distributions are supported by EBITDA. Investment in PP&E is 2X D&A, so they are reinvesting strongly. But yes, it's pretty clear that an increase in debt is the balancing item.... Gearing has gone up a fair bit, but that looks to be due to a recent acquisition.... Quick check on weighted average interest rate gives me about 7.5 - 8%, but maturity on debt is out a long way (only abut 500 mil maturing soon), so they don't have repricing exposure in the medium term to long term....

Just some quick observations...... I don't trade this entity and don't invest in it....

Cheers
 
Re: APA - Australian Pipeline

Big move today on high volume, looks to be more than just bargain hunting, anyone got any ideas?

I have said it in the high yield thread, these guys have been looking fundamentally cheap... Price query here we come.........

Cheers
 
Re: APA - Australian Pipeline

Well I dont think a takeover at APA's consitently undervalued and cheap Share Price is out of the question.

Potential for an opportunistic move by a predator possibly.
 
Re: APA - Australian Pipeline

APA is on the move this morning. Hardly any sellers with big gaps.... and its been on an uptrend for the last few days.

Something in the pipeline or just investors realising that its a secure regulated and well managed investment?
 
Re: APA - Australian Pipeline

Have noticed this myself, holding a few for a steadier in my speccie biased portfolio. Quite pleasing.
 
Re: APA - Australian Pipeline

Looks like there were 2 trades of 1,000,000 each in Australian Pipeline Trust this morning. Someone is interested.
 
Re: APA - Australian Pipeline

Is this stock forming a double bottom and the price is recovering back towards $4 or do you think profit takers might bring the stock back down.

I am trying to decide whether I should sell of some of my holding at around $3.60 to put into another stock that hasn't made as much of a recovery yet or hold on hoping we hit $4 before I sell some.
 
Re: APA - Australian Pipeline

Interestingly APA was one of the solids whom held up very well yesterday. I guess its the safety of regulated incom. A safe stock for the portfolio at the moment (and it even seems to be rising).
 
Re: APA - Australian Pipeline

APA is now languishing at lows around the $2.50 mark after the SPP closed at the end of last month. Is there a debt refinancing problem or are they just getting punished due to the general market downturn and percieved lack of demand. I would have thought the fundamentals of APA were still soild, any theories?
 
Re: APA - Australian Pipeline

How large are APA's asset management fees?

Can anyone tell me if they are having any liquidity issues or refinancing problems, looking out for the next two years of debt coming due?
 
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