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Incitec Pivot Ltd T.IPL


Primary Symbol: ICPVF

Incitec Pivot Limited is an Australia-based manufacturer and supplier to the resources and agricultural sectors. Its segments include Asia Pacific and Americas. Asia Pacific segment includes Fertilisers Asia Pacific (Fertilisers APAC) and Dyno Nobel Asia Pacific (DNAP). Fertilisers APAC manufactures and sells fertilizers in Eastern Australia and the export market. It also manufactures, imports and sells industrial chemicals to the agricultural sector and other specialist industries. DNAP manufactures and sells industrial explosives and related products and services to the mining industry in the Asia Pacific region, Turkey and France. Americas segment includes Dyno Nobel Americas, which manufactures and sells industrial explosives and related products and services to the mining, quarrying and construction industries in the Americas (Canada, Mexico and Chile) and initiating systems to businesses in Australia, Turkey and South Africa. It also manufactures and sells industrial chemicals.


OTCPK:ICPVF - Post by User

Comment by zalmonellaon Jul 28, 2021 1:26pm
187 Views
Post# 33617293

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

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


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