Brookfield Infrastructure Partners (BIP)

FC

Opportunistic grab at prime assets positions this one to grow with the emergence from the recession over the coming couple of years.

Brookfield Infrastructure Partners is a high return business with attractive growth prospects and a world class management team, on the cusp of a highly attractive, transformative acquisition. Yet it is currently trading hands at roughly half of its “pro forma” NAV - implying that it’s a poorly run, low return business in terminal decline. This simply makes no sense, as any competitively entrenched financial enterprise that has the ability to consistently generate above average returns on equity (in the mid to upper teens), and can grow at mid to high single digits for the foreseeable future, should trade at or around its NAV at an absolute minimum.

Despite the positive foundation being formed through its recent BBI acquisition, the high quality assets backing BIP’s underlying value, its attractive secular growth profile (BIP sits at the center of what I believe is an emerging mega trend), and the variety of catalysts that should help bring about the realization of its underlying value…this above average business remains relatively under-followed, underappreciated, and above all, cheap.

The bottom line - With a substantial margin of safety, backed by valuable hard assets and substantial appreciation potential due to its large and growing cash generating capabilities, this is a classic low risk, high reward fat pitch. Investors in BIP at or around today’s price of $15 should earn a double or more over the next 3-5 years. Outperform.

These guys are into everything, just what your broker tell you to do, diversify.

going long picked up 150 shares today.

Passes an earnings surprise value screen

2009 estimated EPS: .3
2010 estimated EPS: -.03
high estimate for EPS 2010: .19
This makes current P/E: 55
forward P/E: negative
If it hits the high estimate forward P/E: 86.8
Fundamentals have to steer this stock eventually, it's just a matter of time.

Interesting infrastructure/RE play - good international exposure, pays a nice dividend. They are in process of raising financing -- which indicates to me that either management agrees there are/will bea number of buy opportunities in their space or they are looking at what they have to do when their current obligations come due. Either way, this should be a good long term play.

This account tracks the less exciting stocks from my watch list - companies that are easy to understand with clean balance sheets and good track records in relatively straight-forward industries.

Great diversified infrastructure stock

(BIP) deals with electricity and timber, which are two things in this world that may never go away, (maybe timber.)

bean1999

NEW position - BIP under $12.00. --

9% dividend.
Assets in Chili / Brazil
Timberland, land, energy backbone

ALL DEBT is NON RECOURSE.

Trading below liquidation value.

Spin-off by Brookfield Asset Management (BAM) - legendary manager Bruce Flatt (canadian buffett)

company has $270M of cash, $545M of total liquidity to maintain that dividend and make adequate capex

nearest debt maturity is in 2011 (as mentioned all non recourse)

10% of shares owned by directors

This is a high return business with nice growth prospects being currently priced as if it was a low return business with no prospects for future growth.

50% discount to pro-forma Book Value

Last I saw (from memory) Credit Suisse had a $28 range NAV on it

I trust management and there are barriers to enter into these locations that BIP does business.
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Brookfield Infrastructure Partners L.P. engages in the ownership and operation of electricity transmission systems, timberlands, and social infrastructure. It owns approximately 8,200 kilometers (km) of transmission lines in Chile; 2,100 km of transmission lines in Brazil; and approximately 550 km of 44 kV to 230 kV transmission lines in Canada. The company also owns approximately 634,000 acres of freehold timberlands principally in Vancouver Island; and approximately 655,000 acres of freehold timberlands in Oregon and Washington. In addition, it owns 30% interest in Peterborough Hospital comprised of a 612-bed acute hospital, 102-bed mental health unit, and an integrated care centre in Peterborough, United Kingdom; 50% interest in Long Bay Forensic and Prison Hospitals, including a 135-bed forensic hospital, 85-bed prison hospital, and an administration building in Sydney, Australia; and 50% interest in Royal Melbourne Showgrounds consisting of a special purpose exhibition facility comprising office complexes, open air arenas, and large scale tension structures in Melbourne, Australia, as well as convention centers, court houses, schools, and police stations. Brookfield Infrastructure Partners Limited serves as a general partner of Brookfield Infrastructure Partners L.P. The company was founded in 2007 and is headquartered in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P. operates independently of Brookfield Asset Management, Inc., as of January 31, 2008.

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3% position in stock.
I will add on dips

Rated 5 stars.

HG

Promising Management, Great Valuation, underfollowed

infrastructrue, timber

Probably one of the most boring businesses around but that is what is so great about it. They own timberlands and electric transmission as well as some social infrustructure. Look for them to make a big splash this year by diversifying into transportation infrastructure by buying into either an overlevered toll road or inking a ports deal. If slow and steady wins the race then BIP is the way to go.

reward is better than the risk at this point with div to wait it out