Forum Archive Index - May 2004

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Robin,
 
> 
>>After what happened last year, I think Marilyn is more the ports
>>expert than I am!     Very disappointing that LPC fell out of the
>>elite 'focus investment group' set of companies.    The union
>>problems, two years in a row now, and lack of provision for
>>replacement of basic infrastructure came as a shock.    I think that
>>long term around 5c per share of value has been removed from this
>>share by all the troubles.
> 
>That's some crystal ball you have! I think a big question-mark 
>overshadowing LPC's future concerns the actions of that union. I
>wonder how many employees own shares in the company -- now 
*that*
>would be interesting information.
> 

>From pg31 of the annual report for 2003.

"As part of the annual staff bonus relating to the record financail 
performanceachieved in the year to June 2002, the Directors decided 
to make use of a provision in the Company's Constitution and make an 
issue of 750 ordinary shares to each permanent employee (price was 
$1.57 per share)."

The answer to your question is nearly all of them.

>
>>However, in defence of LPC the yield is still good at today's prices
>>(just above $1.60).  ROE remains good (27% last year, adjusted for
>>one offs) and there isn't any other port that serves the largest
>>city in the South Island.   Contrast that with Auckland where POT
>>seems hellbent on getting into the territory of POA.
> 
>Indeed. SPN don't look close enough to LPC to be much of a threat.
>What about happenings further up the coast? (I have not been 
following
>that issue recently ... maybe it's died a death?)
>

The main 'threat' to LPC are the unlisted ports of Timaru and Port 
Chalmers (Dunedin).   Ports will always be competitive to some extent, 
but LPC haven't lost any more contracts since the headlines of two 
years ago.  In fact they have gained one back.

SNOOPY

discl: hold LPC

--
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