$10.00

-0.50 (-4.76%)

10/10/2008 4:06 PM

Brookfield Infrastructure Partners (BIP)

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What the Community Thinks

Total Members

191 Outperforms

7 Underperforms

All-Stars

38 Outperforms

3 Underperforms

Wall Street

2 Outperforms

0 Underperforms

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Ticker Tags

Small Cap (1922), Electricity Supplier/Distributor (4)
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Brookfield Infrastructure Partners At A Glance

Current Price:	$10.00
Last Trade Time:	10/10/2008 4:06 PM
Open:	$10.26
Previous Close:	$10.50
Daily Range:	$9.47 - $10.75
52-Week Range:	$10.50 - $21.60
Volume:	206,541
Market Cap:	$398.45M
P/E Ratio:	0.00
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Stock Trends

BIP VS S&P 500 (SPY)

News & Discussion Boards

Other News Headlines for BIP

Brookfield Infrastructure closes credit facility
6/18/2008 5:47:00 PM - AP

More Headlines...

Top Bull Pitch

Recs

2 Brookfield Infrastructure Partners (BIP)

Avatar ValueArbitrage (72.97) Submitted: 9/07/08 3:08 AM

BIP is high return business with above average growth prospects currently priced as if it is a low return business with none.

Reason's for this mis-pricing consist of...

A convoluted financial structure. BIP's complex organization generates financial statements that muddy the cash flow cha...More

Replies: 2 | Reply | Permalink

BIP is high return business with above average growth prospects currently priced as if it is a low return business with none.

Reason's for this mis-pricing consist of...

A convoluted financial structure. BIP's complex organization generates financial statements that muddy the cash flow characteristics of its underlying assets.

Broader market turmult.

The large sell-offs (for uneconomic reasons) that usually accompany spinoffs.

Operating cash flow is currently depressed due to lower earnings from U.S. timber operations and non-recurring charges. BIP should recover to the company's normalized rate over the next few years.

This series of fortunate events above has provided investors the opportunity to aquire best in class infrastructure assets at a ridicuously cheap price. Brookfield currently yields close to 6% and trades for a 20% discount to it's pro forma book value. A financial business with the ability to produce sustainable above average returns on invested capital with the ability to grow at mid to high single digit rates like Brookfield should warrant a premium to book at minimum.

For an enterprise of this quality to trade at such a large discount to book is absurd and unsustainable. Remember, infrastructure assets are highly attractive cash producing assets that carry high barriers to entry (for regulatory and capital reasons), sizable operating margins, possess considerable pricing power, and generate consistent long-term cash flows.

At today's price I believe the downside is very little, but the upside is 30%+ over the next 2 years as post spinoff selling abates and BIP proves its assets are superior, grows it transmission business and finds accretive acquisitions to diversify its portfolio, as it has historically done at BAM.

Upcoming catalysts with potential to unlike significant shareholder value consist of...
.
Stronger analyst coverage, allowing for greater investor awareness
A deal announced by BIP to diversify operations and prove the business model
Increase in the dividend
Any improvement in timber ops
Winning new business in Transelec or Ontario transmission ops

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Recs 0 (BIP) bammerone (82.86) Submitted: 10/09/08 7:59 PM : Start Price: $10.26 BIP Score: -4.54 Cash is King. $9.38 of cash per share. Current price $10.50. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (BIP) CMOCapital (97.51) Submitted: 10/08/08 3:03 PM : Start Price: $12.00 BIP Score: -4.14 Spin-off Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (BIP) basilclick (50.54) Submitted: 9/27/08 5:26 AM : Start Price: $15.78 BIP Score: -10.89 Second chance to benefit from a classical spin-off-situation: These price means a nice discount. Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 0 (BIP) TMFRedwood (61.99) Submitted: 9/25/08 1:55 PM : Start Price: $15.21 BIP Score: -7.18 BIP owns timber and transmission lines in Canada, the US, and Chile. These are stable businesses with steady growth potential. Book value is $22 per share and at $15.50, you are getting a 30% discount, i.e, the shares trade for 0.7x book value. Leverage will increase as the company builds out its transmission lines in Chile, and there will be an equity deal when market conditions improve, but these are not new factors. The parent company still owns 40% plus has committed additional $200 million in equity financing, so it has an interest in seeing it succeed. Plus, there is $270 million in after-tax proceeds coming in via the sale of the Brazilian transmission business (TBE). This is carried on the books at $195 million (pre-tax), so that's an automatic boost of $75 million to book value. On that basis, the shares trade at 0.6x book value. BUY!! Report this Post Replies: 0 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out. Recs 2 (BIP) ValueArbitrage (72.97) Submitted: 9/07/08 3:08 AM : Start Price: $18.81 BIP Score: -18.50 BIP is high return business with above average growth prospects currently priced as if it is a low return business with none. Reason's for this mis-pricing consist of... A convoluted financial structure. BIP's complex organization generates financial statements that muddy the cash flow characteristics of its underlying assets. Broader market turmult. The large sell-offs (for uneconomic reasons) that usually accompany spinoffs. Operating cash flow is currently depressed due to lower earnings from U.S. timber operations and non-recurring charges. BIP should recover to the company's normalized rate over the next few years. This series of fortunate events above has provided investors the opportunity to aquire best in class infrastructure assets at a ridicuously cheap price. Brookfield currently yields close to 6% and trades for a 20% discount to it's pro forma book value. A financial business with the ability to produce sustainable above average returns on invested capital with the ability to grow at mid to high single digit rates like Brookfield should warrant a premium to book at minimum. For an enterprise of this quality to trade at such a large discount to book is absurd and unsustainable. Remember, infrastructure assets are highly attractive cash producing assets that carry high barriers to entry (for regulatory and capital reasons), sizable operating margins, possess considerable pricing power, and generate consistent long-term cash flows. At today's price I believe the downside is very little, but the upside is 30%+ over the next 2 years as post spinoff selling abates and BIP proves its assets are superior, grows it transmission business and finds accretive acquisitions to diversify its portfolio, as it has historically done at BAM. Upcoming catalysts with potential to unlike significant shareholder value consist of... . Stronger analyst coverage, allowing for greater investor awareness A deal announced by BIP to diversify operations and prove the business model Increase in the dividend Any improvement in timber ops Winning new business in Transelec or Ontario transmission ops Report this Post Replies: 2 \| Reply \| Permalink Oops! There appears to be a problem with your comment. Check to see if there's something you left out.
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Top Pick	Member Name	Member Rating	Start Date	Call	Time Frame	Start Price	Stock Gain	S&P Gain	Score	Pitch
	TrackWachovia	< 20	09/29/08		NS	$15.78	-36.63%	-25.74%	-10.89
	TrackBMOCapital	81.90	04/28/08		NS	$18.75	-46.68%	-36.80%	-9.88

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