bigdog
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Does anyone know when trading for TCL will commence?
Company Trading Status: Adjust
Company Trading Status: Adjust
TCL - Transurban Group
- Thread starter slimtrader
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Not much talk on this stock for a while. I have just got in as I took a look at the returns and they were great, plus it has a secure cashflow in a volatile market.
Anyone else got some fundamental views on this stock?
Anyone else got some fundamental views on this stock?
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Ok so am I the only one thats caught on that at this price the stock is returning a stable yield of 10% on dividend alone?
I mean seriously, its a cash cow. It has a reliable source of steady income - unless the people of Melbourne and Sydney stop driving cars overnight.
Check it out people. Its been trading up to $8 recently based on its yield and represents a bargain at this price (imo). It would be good just for the capital gain upside but the yield is great too.
I would think it would retrace quickly toward $8 again - any techo's wanna post an analysis for verification would be great.
I mean seriously, its a cash cow. It has a reliable source of steady income - unless the people of Melbourne and Sydney stop driving cars overnight.
Check it out people. Its been trading up to $8 recently based on its yield and represents a bargain at this price (imo). It would be good just for the capital gain upside but the yield is great too.
I would think it would retrace quickly toward $8 again - any techo's wanna post an analysis for verification would be great.
TCL - Transurban
I couldn't find a thread on TCL, so thought I would start one after buying some TCL yesterday ...
Present attractive dividend yield at 8.15%, and TCL's continuing strong performance looks solidly based through their toll roads, esp Melbourne's CityLink, see annual reports: http://tinyurl.com/34vulz
Rather than having money sitting in a fixed term deposit at 7.25%, I thought it would do a lot better in TCL for the next few years with little risk.
Comments ?
- Gullible
I couldn't find a thread on TCL, so thought I would start one after buying some TCL yesterday ...
Present attractive dividend yield at 8.15%, and TCL's continuing strong performance looks solidly based through their toll roads, esp Melbourne's CityLink, see annual reports: http://tinyurl.com/34vulz
Rather than having money sitting in a fixed term deposit at 7.25%, I thought it would do a lot better in TCL for the next few years with little risk.
Comments ?
- Gullible
Re: TCL - Transurban
IMO TCL should continue solid earnings and subsequently dividend - solid infrastructure that will continue to generate cashflow (people don't stop driving, no matter what the economy is doing!! Though, do they avoid tolls?!?!?)
Biggest challenge is finding some short term growth opp's...HOT lane project is a great long term play, but how do they generate growth in the short to medium term??
Think this one will sit in my portfolio for some time to come....
IMO TCL should continue solid earnings and subsequently dividend - solid infrastructure that will continue to generate cashflow (people don't stop driving, no matter what the economy is doing!! Though, do they avoid tolls?!?!?)
Biggest challenge is finding some short term growth opp's...HOT lane project is a great long term play, but how do they generate growth in the short to medium term??
Think this one will sit in my portfolio for some time to come....
Julia
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Re: TCL - Transurban
Gullible, I bought this about four years ago pretty much on the basis you have suggested but eventually sold it about two years later because - although yes it does have an attractive yield, the SP just wasn't going anywhere. It still isn't!
I guess on the basis of the yield it has a place in a balanced p/f. Unlikely to make you rich, however!
Gullible, I bought this about four years ago pretty much on the basis you have suggested but eventually sold it about two years later because - although yes it does have an attractive yield, the SP just wasn't going anywhere. It still isn't!
I guess on the basis of the yield it has a place in a balanced p/f. Unlikely to make you rich, however!
Re: TCL - Transurban
I bought it because it is perceived as a defensive play. Thinking the market is too obsessed about growth, so when market comes down, defensive stock will at least stay afloat. Yep gullible, when in bear market everything goes down, regardless it's growth or "defensive" stock. Bought it Sept 07 for a defensive play, I sold it again this month just before the crash for a loss.
I bought it because it is perceived as a defensive play. Thinking the market is too obsessed about growth, so when market comes down, defensive stock will at least stay afloat. Yep gullible, when in bear market everything goes down, regardless it's growth or "defensive" stock. Bought it Sept 07 for a defensive play, I sold it again this month just before the crash for a loss.
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Re: TCL - Transurban
Bought TCL on the way down (a bit too early as it turned out) but they do have an attractive earning rate and give my SMSF pie chart a bit of balance.
Their Share price hasn't been to bad, broadly around $4.50 2004, $6.50 2005
$7.25 2006 and $8.25 in 2007 before starting to get a bit pear shaped along with many others.
They signed a pretty attractive sweetheart deal with Brack's mob that will gurantee nice income streams until, I think, 2032, but I would agree it is difficult to see exciting growth opportunities for them in the immediate term.
Bought TCL on the way down (a bit too early as it turned out) but they do have an attractive earning rate and give my SMSF pie chart a bit of balance.
Their Share price hasn't been to bad, broadly around $4.50 2004, $6.50 2005
$7.25 2006 and $8.25 in 2007 before starting to get a bit pear shaped along with many others.
They signed a pretty attractive sweetheart deal with Brack's mob that will gurantee nice income streams until, I think, 2032, but I would agree it is difficult to see exciting growth opportunities for them in the immediate term.
Re: TCL - Transurban
I bought this several years ago for similar reasons....and yes the dividends have been good. I am a little surprised by the fall in SP in the latest round of selling...I am guessing it is because it is fairly leveraged and will have to refinance part of its borrowings now and then in the future.
Another one I am surprised by is BBI...I am guessing the same reasons but more there is something I don't know about..now a very attractive yeild on that one...
I bought this several years ago for similar reasons....and yes the dividends have been good. I am a little surprised by the fall in SP in the latest round of selling...I am guessing it is because it is fairly leveraged and will have to refinance part of its borrowings now and then in the future.
Another one I am surprised by is BBI...I am guessing the same reasons but more there is something I don't know about..now a very attractive yeild on that one...
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Re: TCL - Transurban
I hold TCL and believe a stock like this is essential stabiliser in your portfolio. For the reasons already mentioned, it is a solid cash earner - people will always drive. It shouldn't be too affected by the credit markets as they easily get finance due to the fact that they have very low risk steady income.
Excellent stock to be in at the moment and at this price its very attractive and brings a very nice yield alone (plus scope for capital growth up to and above $8 not only because it has in the past but for these same very fundamental reasons).
BBI is another that I categoirise in this basket with more or less the same explanation at the moment..... though slightly more complex it is returning a very nice yield.
Plus, both have potential for 30-40% even 50% capital gains potential to previous prices if the market goes up.
These 2 for a balanced, steady and yield earning portfolio are a good position to hold imo.
I hold TCL and believe a stock like this is essential stabiliser in your portfolio. For the reasons already mentioned, it is a solid cash earner - people will always drive. It shouldn't be too affected by the credit markets as they easily get finance due to the fact that they have very low risk steady income.
Excellent stock to be in at the moment and at this price its very attractive and brings a very nice yield alone (plus scope for capital growth up to and above $8 not only because it has in the past but for these same very fundamental reasons).
BBI is another that I categoirise in this basket with more or less the same explanation at the moment..... though slightly more complex it is returning a very nice yield.
Plus, both have potential for 30-40% even 50% capital gains potential to previous prices if the market goes up.
These 2 for a balanced, steady and yield earning portfolio are a good position to hold imo.
Re: TCL - Transurban
You're probably right. But with the present bearish uncertainties, at the moment I'm looking for less sexy stocks that are unlikely to make me poor.
- Gullible
You're probably right. But with the present bearish uncertainties, at the moment I'm looking for less sexy stocks that are unlikely to make me poor.
- Gullible
Julia
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Re: TCL - Transurban
Sure. Makes sense at the moment. It doesn't seem to have been as badly affected as some in the recent volatility.
Bill M
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TCL has been taking a battering of late, closed at $5.60 on Friday. Looking at a 10% unfranked yield here, any comments?
News Story From a Couple of Weeks Ago Here.
News Story From a Couple of Weeks Ago Here.
Hi
I had TCL from 2005 until mid-2007 and, in that climate, found it disappointing. However at current prices and in the "new" climate it could be worth re-visiting, particularly for dividends, as a long term hold. I can't see why there shouldn't be a capital rise, over time, as well. They seem to be pretty much a "cash cow" in terms of revenue.
The etrade site doesn't give a P/E ratio for TCL -- anyone know why?
Regards
Rick
PS - I am a novice trader with a long-term view.
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Well I thought that a PE ratio can only be applied if you actually made a profit. Looking at the financials, they dont make a profit, therefore dont have a PE.
(correct me if i am wrong)
They also have a huge debt problem, with high interests rate they are getting hit. This may actually mean they will reduce their dividends for this year. Dividends look to be june and dec
In other words I think the market is saying stay clear, from 28/02/08 sp was close to $6.70 and now about $5.60, 15% of the share down in about 7days.
Maybe a buying opportunity? I dunno
Just thinking on a tad... I recalled an article in the FR Smart Investor and pulled it out. [Note that this was 10/07 before a lot of the proverbial hit the fan].
TCL was referred to [in fact the first reference] in an article concerning "stocks to navigate a volatile market".
Partial quote:
"A growing taste for debt in the sector [infrastructure] means it's no longer an automatic safe haven. TCL is a stand-out exception....The broker [Deutsche] says Transurban's seven tollways would have to suffer an unlikely 30 per cent reduction in traffic volume over a sustained period before the company would have to default on any debt..."
Back then, in October, the share price was around $7. Now it's $5.60 or so.
The dividend yield has gone from about 8% to about 10%. [If dividend levels are sustained].
Can't be completely bad surely?
TCL was referred to [in fact the first reference] in an article concerning "stocks to navigate a volatile market".
Partial quote:
"A growing taste for debt in the sector [infrastructure] means it's no longer an automatic safe haven. TCL is a stand-out exception....The broker [Deutsche] says Transurban's seven tollways would have to suffer an unlikely 30 per cent reduction in traffic volume over a sustained period before the company would have to default on any debt..."
Back then, in October, the share price was around $7. Now it's $5.60 or so.
The dividend yield has gone from about 8% to about 10%. [If dividend levels are sustained].
Can't be completely bad surely?
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Hey Nick
They wont go bankrupt and they wont have problems paying their debt. They will have a problem with reduced profits due to funding interest debt.
The market is correcting this share and in doing so has factored in reduced profit.
I think if you thought long term about this share you would come out infront.
I mean TCL has got a monopoly on the roads, they are allowed to increase the tolls and the goverment arent allowed to compete against it by building other roads. We can thank Mr. Kennet for that marvelous deal.
If they dont play with the dividends the sp closer to the dividend date looks chunky. For growth I dont think TCL have any new projects. They just need more cars and increase tolls.
I think thats why the sp isnt going anywhere fast.. besides maybe down in the short term..
They wont go bankrupt and they wont have problems paying their debt. They will have a problem with reduced profits due to funding interest debt.
The market is correcting this share and in doing so has factored in reduced profit.
I think if you thought long term about this share you would come out infront.
I mean TCL has got a monopoly on the roads, they are allowed to increase the tolls and the goverment arent allowed to compete against it by building other roads. We can thank Mr. Kennet for that marvelous deal.
If they dont play with the dividends the sp closer to the dividend date looks chunky. For growth I dont think TCL have any new projects. They just need more cars and increase tolls.
I think thats why the sp isnt going anywhere fast.. besides maybe down in the short term..
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