- Malaysia Airport Holdings Berhad: They are changing their regulatory model - right now - due end March. Previously they were only responsible for operational capex, now they will be responsible for all capex. A massive capex increase is expected, from 200-300m per year, to 2-3bn (p28). Since the business model is changing, the we can't look at past financials. At least need to see the new regulations first, but it would be difficult for me to judge.
- Sydney Airport: Simple business, far too leveraged and expensive. At AUD 5.30, its at 30X earnings, even excluding D&A, its at 20X. Debt is around 10 or 11bn, against 1.1bn CFO. Forget it.
- Chr. Hansen: Fantastic business, they make bacteria used for yogurt/cheese, with a 70/50% global market share. Still too expensive. Growth has been slow in the past few years, would need to drop more than 50% to get a price of DKK 170 to be at 15X earnings.
- InterContinental Exchange (ICE): Stock/commodity exchanges, with 50% operating margin. Still too expensive, wait till it hits $36 to $60 (trailing PE of 12 to 20).
- Segro REIT: Fast growing industrial REIT, mostly UK, some Europe. Still expensive on an EPS basis, would need it to drop to at least 50% to GBX 370 at 15X earnings before looking.
Maybe worth buying now:
- Berkshire Hathaway. Good description of BH's business model by ValueInvestAsia.
Theres still a lot of expensive stocks out there. Markets are not cheap yet.
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