IPL - Incitec Pivot

[Bluebeard]

IPL has continued to fall in price now trading around the $2.30-2.35 range yesterday and today, I have a small stake, would people be looking to acquire this stock at these levels or would people wait?

I also have another question, wouldnt it have been a better fit for IPL to look at say Nufarm rather than the Dyno acquisition they made, do people think that the Dyno acquisition was a good acquisition longer term?

 

[TheAbyss]

Immediate issue for IPL is the lost revenue due to Rio pulling their horns in. Nothing else to say for 100 chars

 

[Sean K]

This is similar to a few other charts, where a bottom looks to have appeared.

Or, just a pause for the next capitulation...eeeeek

One to watch for a break up I reckon.

 

[Julia]

Good Grief! I haven't been watching this since I sold 1.7.08 at $178
(equiv to about $9 after the split).

Has there been a fall in fertiliser prices? Any other reason for such a sharp fall?

 

[tcoates]

With the split there was 1 for every 5 shares (I think) which moved the price to around $4.50 from $6(ish). Followed by another drop and capital raising at $2.50(ish).

Fertiliser prices not helping much.

Also dropped due to association (industry group only) with US stocks whose share price was also dropping.

See also -

http://finance.google.com/finance?client=ob&q=ASX:IPL

Tim

 

[basilio]

Does anyway have any thoughts of the effect of IPL's involvement with CNX's trial of syngas production? As I understand it if the CNX trial is successful there is the opportunity for a $1bil plus ammonia plant as a feedstock for IPL's fertilizer/munitions business.

Would this result in better cost efficiencies and more reliable production?

 

[nulla nulla]

Hhhhmmmm....if the world reverts to a global war to stimulate the economy and reverse the recession/depression, shares in a munitions manufacturer could be the way to go.......

 

[Julia]

With the split there was 1 for every 5 shares (I think) which moved the price to around $4.50 from $6(ish). Followed by another drop and capital raising at $2.50(ish).

Fertiliser prices not helping much.

Also dropped due to association (industry group only) with US stocks whose share price was also dropping.

See also -

http://finance.google.com/finance?client=ob&q=ASX:IPL

Tim

Tim, the split was 20 for 1.
Following is a quote from the news release:



September 5, 2008 - 4:36PM
Advertisement

Shareholders of explosives and fertiliser maker Incitec Pivot have overwhelmingly approved a share split of 20 for one.

The share split will apply to shares held as at 1900 AEST on September 23.

The total number of fully paid shares in Incitec will increase to about 1,217,230,560 from 60,861,528.

"It (the share split) is intended to benefit shareholders by lowering the nominal value of shares, so that the affordability of the shares to retail investors will be increased and facilitate the introduction of a dividend reinvestment plan for Incitec Pivot shareholders," chairman John Watson told a general meeting of shareholders.

 

[tcoates]

You are correct that it was a 20 for 1 split. But I also got an additional 50 shares out of it?!? (I had dipped my toes in before the split)

Unrelated, when they went to the market for additional capital, the shares were offered at a substantial discount to the current price at that time.

Tim

 

[JTLP]

From 60 million shares to over 1 billon?

I hope everyone held onto their shares and didn't sell...that's a hell of a lot of liquidityyyyyyyyyyyyyyyy

Do not hold IPL...was looking to but didn't like the cap raising or t/o over Dyno

 

[Julia]

I hope everyone held onto their shares and didn't sell...that's a hell of a lot of liquidityyyyyyyyyyyyyyyy

Why would you hope people held onto their shares? I'm very glad I sold mine, given that they're now little more than a quarter of the value at which I sold.

Tim, what was the deal that meant you got the extra 50 shares?

 

[tcoates]

Tim, what was the deal that meant you got the extra 50 shares?

I could bore you with the history. BUT WONT.

I doubled checked my chess statements, and there was/is no extra 50 shares.

Apologies for any confusion.

Tim

PS. Will double check emails next time for accuracy of information. (really stupid now)

 

[JTLP]

Why would you hope people held onto their shares? I'm very glad I sold mine, given that they're now little more than a quarter of the value at which I sold.

Tim, what was the deal that meant you got the extra 50 shares?

Ahh sorry Julia...I meant post split! Not like held them from $200 all the way down...that's just silly

 

[numbercruncher]

Good Grief! I haven't been watching this since I sold 1.7.08 at $178
(equiv to about $9 after the split).

Has there been a fall in fertiliser prices? Any other reason for such a sharp fall?

Recently Urea was selling overseas for like 300 us bucks a tonne but around 1200 aud retail here - crazy, has to fall here .....

 

[Go Nuke]

Im thinking of increasing my small holding in IPL, but as Kennas said....is this a base forming for a breakout or just another breakdown!

I personaly doubt it will turn into a breakdown.
Though I threw away the capital raising paper work...what a laugh I found that. If I had the cash I knew I could easily have picked up IPL for less than $2.50.

In my very limited experience with the share market, Ive yet to see a company trade ABOVE the rights issue price after its happened.

Reasons for that vary like current economic climate etc...but the results are the same.
AWC is the latest one off the top of my head for a good example (other than IPL)


I like IPL because of its exposure to both fertilizer (food,farming etc) and now has exposure to the mining industry through DN. So when the mining industry picks up so should IPL, and when fertilizer picks up...so will IPL.

Gee i figure if the stock can get to $200 during the worst drought in history, then I'm sure they can survive the future.

ps (I'm taking a long term view of this stock...investor type long term, not trader )

 

[Sean K]

Im thinking of increasing my small holding in IPL, but as Kennas said....is this a base forming for a breakout or just another breakdown!

Could also meander sideways for some time, as many predict the market will do, but LOOOONG term looks good to me. Just a matter of time I reckon.

 

[outback]

I gone long. Yield alone will keep me satisfied for awhile. Gratuitous post lengthening in progress.

 

[Julia]

Ahh sorry Julia...I meant post split! Not like held them from $200 all the way down...that's just silly

JTLP, I must be silly and just missing your point. I don't get what you mean at all. Obviously they didn't fall from $200 down to $2.50.
Just to use my own experience as an example my sell price (pre-split)
was approx equivalent to about $9 (post split). Given that the SP at the time I made that post was somewhere between $2 and $2.50, why would you be grateful that you'd held onto them?

Why wouldn't you take your profit and exit instead of holding on into that fall?

 

[JTLP]

Julia forgive me...it's probably only in my mind that it makes sense

I'm talking post split and if everyone just decided to drop there shares with a billion on issue that is a lot floating around.

This is probably making no sense and i'm probably looking quite the fool so let's roll on!

On a serious note...do IPL intend to hold that divvie? 11.3% at the end of day trading fully franked...seems rather generous?

 

[naddis01]

Recently Urea was selling overseas for like 300 us bucks a tonne but around 1200 aud retail here - crazy, has to fall here .....

I beleive that the price of urea has ~ halved recently after farmer groups were considering importing their own fertiliser for the up coming winter season. Funny what a little competition can do.