Incitec Pivot Ltd T.IPL

RE:RE:RE:What to do, what to do...

[Antonyius]

I actually own Brookfield shares and I share the same mentality, most of the money funnels upwards to the parent company so I own bam.a as well. They occasionally do some shady stuff like buy out a subsidiary that's undervalued wait a few years and will try and spin it out again. With that said, I don't think that will happen with bipc at least on the short term.

zalmonella wrote: Thanks Antonyius, in your case I'd do the same. At today's price, there's really no difference between cash and stock, compared to when the offer was made, so Mr. Market seems not to like that BIPC won the battle.  I'm sure that's only temporary, though.  Looking at 3 and 5 year returns for BIPC have been about 17-20% including the divvy, so if it continues as it has, I should recover my loss in a year or so.

But there's a reason that I've not traditionally been in Brookfield except for BAM.A (and a little bottomfishing in BPY.UN last year) and that's because excess profits all get raided by the parent one way or another.  BIPC has had a heckuva run, and I don't know if the parent will let that continue or pick some of the more profitable parts of it off to bolster its own returns? 

Anyway thanks for your thoughts.

I got in originally under $10, and I bought some more around the $17 dollar market for an average of $11 so I am the low cost camp you mentioned. However I think in your case, selling for a loss wouldn't be ideal. I still believe Brookfield and Pembina were fighting over IPL because they're still undervalued, so there's still a bit of room to go up. Brookfield will probably break up the company but will look to make some money in the process so I wouldn't take the cash offer now and settle for the bipc shares. Disclosure, I personally sold half just a few cents under 20 and invested it elsewhere that I felt had higher upside potential now. The other half I'll probably convert and see where it plays out.