TCL securities are, if anything, akin to a GDP-linked bond (if there is such a thing); for, the Company’s revenues are linked to both CPI and traffic growth (the latter of which is almost 100% correlated with real GDP).
Hence, Free Cash Flow grows very much in line with nominal (inflation-unadjusted) GDP growth, on a per-project basis (i.e. before new concessions are added).
And a stream of income that is closely correlated with nominal GDP growth (plus has the upside of new concessions being granted/extended) is, almost tautologically, a growth investment.
FWIW, this is now the largest position in my portfolio, together with another infrastructure asset and, if the SP goes down on no Company-specific news, I may add even more.
IMHO & DYOR
News: TCL Transurban says March qtr average daily traffic rose 5.3 pct, page-9
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Last
$13.54 |
Change
0.030(0.22%) |
Mkt cap ! $42.02B | |||
| Open | High | Low | Value | Volume |
| $13.53 | $13.60 | $13.50 | $27.26M | 2.013M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 9892 | $13.54 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $13.55 | 30454 | 2 |
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| Last trade - 16.10pm 23/08/2024 (20 minute delay) ? |
| TCL (ASX) Chart |