SUNCORP

[OldRider]

I had not realised NZ shareholders were to be excluded from their capital raising rights issue. Any other forum members who hold SUN out there, did you get the letter today saying you were an ineligible shareholder?

It has been a while since I ran into this issue, I suppose at least we will get a payment from the bookbuild.

[soulman]

I am an aussie and just got my prospectus today. I suppose you have to settle for $20.50, which is $5 per share worth of your entitlement. It could go below $20.50 later in the few weeks when the shares are fully allotted but at the mean time, it's just above that price. I guess you are not missing out that much except for capital gains tax.

[winner69]

Hell .... back then SUN was obviosly in excess of $20

Now a right s issue at $4.50 ..... does that signal a new price when the trading haly comes off .... yesterday at $7.13

Tough world when the banking part says 'strong underlying profit growth offset by significantly higher i,pairment charges' ..... bugger it .... and the CEO on his way out as well

More to come in Aussie banking sector ..... plenty of time before investing ... wait until all the toxic gone and raising s completed

[macduffy]

Yes, there'll be problems for some time IMO.

However, SUN shouldn't be grouped too closely with the four pillars. A big part of its business is insurance which overpaid ( in the market's opinion) for a big acquisition not that long ago; the banking business is heavily ( almost exclusively?) weighted to Queensland and has suffered disproportionately from the building/development problems in that state; SUN's capital adequacy is a fair bit below the big four and, as far as I can tell, will still be a bit lower even after the new raisings.
All the same, the issue looks cheap to the instos at $4-50 but I guess that's the sort of discount needed to attract them.

[winner69]

Wonder if instos will start getting a bit pissed off .... most of the recent raisings have cost them heaps and under water already ..... thinking of the long term eh?

[macduffy]

Wonder if instos will start getting a bit pissed off .... most of the recent raisings have cost them heaps and under water already ..... thinking of the long term eh?

...and they probably try to tap the instos that aren't already big holders of that particular company's stock!
Just as well the Aus market has all that compulsory super money accruing week by week and looking for a home!

[shasta]

...and they probably try to tap the instos that aren't already big holders of that particular company's stock!
Just as well the Aus market has all that compulsory super money accruing week by week and looking for a home!

Wonder what there exposure will be to the North Queensland flooding?

An insurance company (aka "cash cow") should do alright in this market.

If it gets much cheaper, i'll be crunching the numbers to see if it fits within my undervalued "stable" of companies :rolleyes:

[Dr_Who]

You guys think this is worth a punt during the rights trading?

[macduffy]

An insurance company (aka "cash cow") should do alright in this market.
QUOTE.

Although investment of the float will have more than the normal risks at present ?
The return on cash not attractive either.

The biggest problem with that particular part of SUN's business is that they overpaid for Promina in the first place - or so we're told.