Transpacific SPS down a notch

Since upgrading the Transpacific Step-up Preference Securities (Transpacific SPS) in Opportunity on the scrap heap from 11 Sep 13 (Buy – $95.37) the price has barely moved so you may wonder why we’re downgrading. The difference between now and then is that the stock has lost its entitlement to a $3.18 half-yearly coupon, which those who bought in before 24 Sep will soon receive. And with most of the returns expected to flow from distributions there’s little wriggle room in the price you pay. With that in mind we’re adjusting our buy price in the recommendation guide down by the aforementioned...

Since upgrading the Transpacific Step-up Preference Securities (Transpacific SPS) in Opportunity on the scrap heap from 11 Sep 13 (Buy – $95.37) the price has barely moved so you may wonder why we’re downgrading. The difference between now and then is that the stock has lost its entitlement to a $3.18 half-yearly coupon, which those who bought in before 24 Sep will soon receive. And with most of the returns expected to flow from distributions there’s little wriggle room in the price you pay. With that in mind we’re adjusting our buy price in the recommendation guide down by the aforementioned distribution to $93.00 and downgrading a notch to HOLD.

However, bear in mind that, all things being equal, as the next six months pass by, the price we’d be willing to pay for the stock will rise as the next coupon payment accrues – at a rate of about 50 cents per month.

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Email is required.
Email must be a valid email.
Password is required.
First name is required.
Last name is required.
Mobile phone number is required.
You must accept the terms and conditions.

OR

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device


OR

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
Discount -{{productDiscount}}
GST {{productGST}}
TOTAL   (inc. GST) {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Login or to reset your password, select Forgotten password

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device


OR

Related Articles