Many environmental stocks have shown outstanding share price performance since listing. Here are seven examples that prove that good stock selection among environmental stocks can lead to excellent share price performance and capital gains.
Qube Holdings ((QUB)) will shortly announce its first tenant for Moorebank warehousing, a catalyst brokers are keenly anticipating. The company has stated the first tenancy will include a purpose-built warehouse developed for the customer via a long-term logistics contract with Qube. The company will undertake a $350m capital raising to fund both new warehousing and further opportunities.
Freight, port and logistics firm Qube will make one of the largest non-mining investments in the country with a five year plan to spend upwards of $400 million developing a new freight hub in Sydney’s southwestern suburbs.
Finding a solution to the inefficient and complex logistics industry in NSW is difficult but Qube Holdings (QUB) appears to be heading down that track. That’s the view Ord Minnett takes in initiating coverage on the stock. The going may not be easy but in the longer run, if the Moorebank intermodal terminal is successful, it will be rewarding. The Moorebank intermodal will include a large freight hub and a rail shuttle to Port Botany.
Qube’s result fell -5% short of the broker, leading to a -12% downgrade to forecast earnings in FY18. Consolidated divisions and the Patrick JV met expectations but the broker sees lower Patrick earnings ahead, along with higher corporate costs and interest charges.