Thursday, September 30, 2021

Napier Port: Deep Waters?

Napier Port has a special place in my heart. When I was a boy I used to go there with my sister and father most Sundays for an ice-cream. I used to imagine what sorts of things came in from the port and what sorts of splendid things went out.

Well come 2021 I own a very small part of it. Always wanted to. My dead Dad would be proud!!

Well what are some of the details.



Gross Div Yield3.439%
Securities Issued199,875,937

As you can see from the chart above the share price has been trading since #covid19 hit of $2.52 and a high of $3.90. What has been interesting is that it has bounced around a bit but hasnt got below $3.14.

recommend buying now at between $3.15 and about $3.20 because the share price should hold up because the so call "wall of wood" will generate the bucks for 10 years at least.

There is only two exceptions i would look at.

The company is carrying a lot of debt. I say that because its roughly at 25% of net assets. A counter to this is that is 55% owned by the Napier City Council so it is never going to go broke.

The second is the company does not have a lot of time under it belt as a public/private entity - about 2 years - so hasn't really established yet a good pattern of trading in public.

I have bought a few and will buy more as and when they reach my sweet spot.