CBL Insurance next IPO...
http://www.nzherald.co.nz/business/n...ectid=11416718
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CBL Insurance next IPO...
http://www.nzherald.co.nz/business/n...ectid=11416718
Looks pretty interesting, they have impressive profit growth over the last five years.
Herald article about Fliway and CBL...
http://www.nzherald.co.nz/business/n...ectid=11418803
While not a reflection on CBL this corner of the insurance industry has in the past proved to be problematic for small companies operating in Aoteroa.
http://www.teara.govt.nz/en/1966/dis...nancial/page-4
Boop boop de do
Marilyn
Looks like it is back on again...
http://www.nzherald.co.nz/business/n...ectid=11494999
It is now on!
http://www.business.govt.nz/disclose/fmc-register/viewInstance/view.html?id=0b027646737e9b074ab16a7ffcc2a4a49dd22 238daccbf4b&_timestamp=5244007786704191
Looks pretty good to me... thoughts?
Is anyone looking at this IPO?
Doesn't seem to be much chatter here on this one...?
share offer website here:
http://shareoffer.cblcorporation.co.nz/
I'll be having a look although I regard insurance companies' financials as a bit of a black box, coloured perhaps by one of my earliest encounters with the industry. Luckily, I had no financial interest in the matter, myself!
http://www.teara.govt.nz/en/1966/dis...nancial/page-4
My Broker said he heard there has been strong offshore demand and that the priorty offer is now well oversubscribed. Looks cheap at 8.0x PE and pays a good yield, could be worth a punt.
I also found an article in the Australian Financial Review.
CBL priority pool oversubscribed
Kiwi insurer CBL Corporation's priority pool is oversubscribed as it seeks to raise NZ$132 million for a dual listing next month.
The priority pool is open to CBL's close business associates and partners, and was set at $10 million with the ability to take oversubscriptions.
CBL, advised by UBS, Forsyth Barr and Bancorp, will launch an institutional bookbuild on Thursday.
CBL, the largest and oldest credit surety provider in New Zealand, expects to list at between NZ$1.45 and NZ$1.85 a share, and raise between NZ$123 million and NZ$132 million. This will indicate a market cap of up to NZ$389 million.
The company, which sources a large chunk of its revenue from Europe, plans to use the money it raises for organic growth and branching out into new lines of business.
Management is expected to retain around 25 per cent of CBL's stock after it is listed.
Street Talk revealed that Forsyth Barr analysts had valued CBL at $NZ385 million to $NZ450 million in pre-marketing research.
The priority pool is only $10m. I note that Forbarr has farmed it out to FNZC like they did with Fliway when they didn't get takeup and that was a disaster. I was very interested jn CBL but got a bit scared away by a) Forbarr being involved and b) not much interest here on Sharetrader.
That said, all dual listing IPOs in the last three years have done well on list day if i recall correctly.
GS
Allocation was scaled back by 50 %,due to demand from Australian brokers ?
Allocated at lower end $1.55
PE undemanding
Anyone else in?
http://www.scoop.co.nz/stories/BU150...-bookbuild.htm
I find them quite exposed to property construction cycles and the French market and legislation in particular. Good profits but too much concentration to be prudent for an insurance company.
I swallowed my doubts and applied for a few. Will see how many fewer are allocated!
Is it possible to apply through asb securities/if I don't have a broker, or is there a place the public can apply for shares directly?
If the talk of more self regulation in the building industry results in more performance bonds being issued, CBL will be a big winner!
What are people's thoughts on buying on the market on listing - this is one stock i'm quite keen to get a hold of a few early. I imagine (with little research as yet or many years in the market, nor knowledge of) there will be an increase on listing followed by some stag selling - anyone care to voice their opinion on this and check back later to see if they are right?
(I will be DYOR'ing and not holding any grudges if my entry is astray to the posters's opinions I generally tend to keep an eye on :) )
I have heard things regarding some of the managers/directors pasts... lets just say I think they are "questionable" which is the reason why I'm not investing, unfortunately, because I did initially like it.
I am also a little worried why CBL are so "hell bent" to get itself listed while they know it is a volatile/tough market... if it was such a great company why not wait till early next year (only a couple months away...) when things have stabilized and therefore are able to receive a higher price and more capital (Yes I know they say "they are looking for long term investors and don't care about short term volatility" but this just doesn't wash with me...)
Anyway that's just some food for thought, because I don't "have a good feeling" about CBL (as a result of the above), I'm out.
CBL gets a mention in Roger Montgomery's newsletter.
http://rogermontgomery.com/its-good-...eid=9f402457b0
http://www.nzherald.co.nz/business/n...ectid=11528210
Well today's the day... judging from the few buy orders in as at 9:27, it doesn't look like there will be a huge bounce, although there is only one sell order in at $2 currently... should do ok I suppose as market conditions the previous few days have been quite positive.
(disclosure: I did not buy any due to various concerns I have, particularly with management, as stated previously, but as with every new listing, I am watching with interest)
I hope it does well. The IPO market is a bit lonely at the moment and it would be good to see a success.
Dual listings usually do quite well.
I didn't buy any this time as I have sold out of all my shares now for safety, but would like to see CBL do well.
This interview with Peter Harris in particular rang very hollow:
http://www.nzherald.co.nz/business/n...ectid=11525425
He had to default to the "long-term investors can see right through the current volatility" type statements, which never sit very well with me, and are too sound-bitey and vacuous in my opinion
Listed today now $1.72 .
Up 14% on the placement price. I'm happy with that.
what's up? sp is rocketing up today! the new UK acquisition is great one?
Forsyth have given it a price target of $2.17 (today), that is what is up I think
ouch Trader Jackson....costly mistake not getting in at the IPO....
Its been a good performer hasn't it?? Well done to all the holders :)
Excellent announcement and good to see a company over achieve their listing forecasts.....
https://nzx.com/companies/CBL/announcements/278507
Cbl ccvi 27 /2.42 + 15/0.564 =11.16 + 26 = 37 ?
You got me diving out of my sick basket for the accounts there :scared:.
Earnings is quoted at 20.88cps so the P/E would be 11.73 at today's close of $2.45, which if this level of profit (or more) is sustainable then it would appear to be a bit undervalued (Notice words like 'if' and 'would' and 'appear' and 'bit' there before you get too carried away).
I am definitely going to give the entire 147 page announcement a proper look over (accounts first and then the frippery) but superficially it looks good to me.
Usual stuff. Do Your Own Research & Beware of Tigers Selling Insurance
Best Wishes
Paper Tiger
So on Page 98 - Note 26 Contingent liabilities (many pages still to go ;))
"Contingent liabilities are not recognised in the SOFP1 but are disclosed where settlement is less than probable but more than remote. If settlement becomes probable, a provision is recognised"
Made me smile :D.
Best Wishes
Paper Tiger
PS "At the year-end there were no contingent liabilities (2014: nil)." :t_up:
1Statement Of Financial Position
Research all done and dusted for now
Findings:
Should have bought them when they listed - I would have a tidy paper profit by now.
Missed the day the results actually came out as I was on an airplane (AirAsia X, not Air New Zealand).
They have an office here in Kuala Lumpur! Not far from the Petronas Towers and the KLCC branch of NZ Curry House. By a quirk of fate I walked by them today having been to listen to the Malaysian Philharmonic Orchestra (Sibelius: Symphony No 1; Nielsen: Flute Concerto; Liszt: Hungarian Rhapsody for Orchestra No 1).
The 20.88cps earning is based on a weighted 170M shares and not the end of year 220M, which would give about 16.1cps.
But by the time you have manipulated the numbers for the one-offness of the IPO you can accept 20cps as a reasonable picture of where they were.
Cash flow has been good.
The figures for Assetinsure since acquisition look like an outlier which bolstered the result significantly.
They have cash to use for more acquisitions & expansion, so if they do it mostly right then generally they should be able to grow profits over the next few years by say 10%.
Guess cps of $0.21 for FY16, and a few years of averaging 10% growth then I would value them at $2.60 now looking at $2.74 at year end.
So, not a convincing buy for me.
I will try to remember to keep an eye on them. I might buy a few, in case they surprise on the upside.
Best Wishes
Paper Tiger
A nice clean and solid result.Well done CBL. A growth story with undemanding metrics
https://nzx.com/files/attachments/234678.pdf
Thought I should mention that I bought some of these and was about 5% in profit at close yesterday, plus I have the dividend (about which there is a long story and involves Computershare receiving the Wrath of the Tiger).
Feeling a little more positive about their future and I would probably buy some more but the sell side is ridiculously thin.
As Always Please Do Your Own Research.
Best Wishes
Paper Tiger
Have just become interested in this stock - anyone have any reliable ways of valuing Insurance companies? I've heard Price/Book ratios are a good rule of thumb:
P/B = $588,735,000/$193,732,000 = 3 , which is quite high, so would require further analysis to tease out the details.
Also noted briefly that the claims ratio is below 50% of GWP. The company is new and in growth mode, and with Insurance companies, the claims ratio will be much, much higher over the long term (90%???) as the claims catch up, so we should expect this to grow quite substantially over the next 3 years.
If you ever find that good rule of thumb, Grunter, let me know please. I've been interested ever since Standard Insurance went west in the 1960's - unauthorised dealings by their Sydney manager caused their downfall - and have dabbled in insurance shares in a minor way over the years. Currently have a small holding in TWR. It's still largely a black book to me - seems to depend on assumptions, esoteric ways of valuing liabilities - contingent and otherwise - and the price of fish! Just as an aside, as you are probably aware CBL isn't your typical insurance company being much more involved in perfomance guarantee type business and less in property insurance. I hold a few from IPO.
It is not the typical insurance company though Grunter
http://cblcorporation.co.nz/about-us/our-group/
I strongly suspect claims ratio will not go higher anytime soon.My understanding is CBL takes no risk.All risk is farmed out?It generally avoids exposure to natural perils or disaster risk
They have actually been around since 1973 with 40 years of experience.
http://www.4-traders.com/CBL-CORPORA...978/consensus/
Not entirely. They "share" the risk with re-insurers. But then, don't all insurers?Quote:
My understanding is CBL takes no risk.All risk is farmed out?
CBL provide Surety Bonds to construction risks (I think). So if there was an event that caused the bond to trigger, CBL may be able to subrogate against the counter party that caused the event, presumably through their professional indemnity insurer.
CBL operate predominantly as an insurer, with some MGA (Managing General Agent i.e Broker with underwriting authority) activities. MGAs bear no risk, but Insurers do.
Ratings upgrade for CBL:
"The Auckland based company, which successfully listed on the New Zealand and
Australian stock exchanges last year, saw its financial strength rating
upgraded to A- (Excellent) from B++ (Good) and the issuer credit rating
upgraded to a- from bbb. The outlook for each rating remains stable."
Should open up opportunities in SE Asia and Australia
Good company to be involved with IMO.
CBL Corporation plans acquisition of SFS
$151 mill strategic aqcuisition; no cap raise.
My buy will be left dangling.
Well this gets a bit of a lift
https://nzx.com/files/attachments/238570.pdf
Yeah a Turbo expanding company maker . Luckily my buy got hit courtesy of the Brits.:D
Rising volume and price, both on the NZX and the ASX.
I think that is a good thing.
Best Wishes
Paper Tiger
As one share sinks another rises to a new high $3 and few on offer..Weighing machine in action.
On track with strong growth opportunities including brexxit
Some Foreign exchange losses
CBL Corporation Limited 2016 Half Year Results
Up over 6% today on the back of this announcement, impressive year
I was hoping for a little better than a first glance reveals but I will live with it.
Best Wishes
Paper Tiger
CBL is a liability insurer, which means that they are exposed to long-tail risk, the most feared exposure in the insurance industry, and portfolio contagion, meaning that because they write a specialist area of cover, they are exposed to aggregation within their portfolio of a specific type of risk, which could eventuate from left field on a widespread scale.
Recovering from counter parties means subrogating against the contractors/project managers/construction firms that will have professional indemnity cover for their liabilities. Thus CBL should be able to recover some of their costs of paying claims from third parties.
Looks like someone has shuffled 1,150,000 shares from the ASX to the NZX or vice versa.
Otherwise volume is low but the share price is reaching for the stars.
Best Wishes
Paper Tiger
Thanks for that info Paper Tiger and sharing your knowledge.
I sold my few today because I saw the buyers lining up, and I didn’t want them to be disappointed. I wish I had more to sell. Almost everything else in my portfolio is going down so I had to make the most of the opportunity.
Capital raising, shares on offer at 3.45c
CBL up 50% over the last 6 months in my portfolio, so wouldn't mind picking up a few more
A rising Insurance company raising money
Tower going to the wire....
Hmmmmmm
I'd be very surprised if there's any connection. CBL and Tower are two very different types of animals.
Acquiring shell co. in USA
http://www.nbr.co.nz/article/cbl-rai...September+2016
Yes Macduff I realise that but if its a different beast then its within the same genus ;+)
The shell co acquisition is only 6 M so it might not affect their ability to move on Tower. I'm only wondering about this , there is no real evidence , just a possibility . If not them, then someone else pretty soon I reckon.
Got my SPP documentation by email today, and what a wonderful surprise, I can email the signed acceptance form back!
Still have to 'print' the thing out though.
But I believe we may be on the cusp of a digital revolution here.
Something I can tell the grandcubs about in years to come.
Best Wishes
Paper Tiger
$3 mill spp will be scaled to nearly oblivion (mkt cap re $892 mill)so I'm not selling any in advance and how long will my funds be tied up before i get them back minus a handful of extra shares.
Tied up until 28th Oct at the earliest.
They've got my money, too, Jt. Like you, I expect most of it to be returned - but then it's not earning a lot of interest at present anyway!
New 52 week high and broken through $4
Over-subscription by 111%.Oh well we will pick up a few more
http://www.stocknessmonster.com/news...S=CBL&N=291518
Over-subscription of 111% doesn't sound too excessive. Now we'll see how scaling back applications " on a proportionate basis in accordance with the number of CBL shares held by the Applicant" works out in practice.
So the kids had 1,750 shares each. Subscribed for maximum each. Got 306 each. So 306/1750 = .175 ish.
That's an interesting way of expressing it, Hugo.
17.5% of original holding - in my language.
:)
Yep. Think I spend too long at the computer - at times. :-)
Looks like i got 100% subscription!!.Not looking so great at this moment in time.
Just a trivial point, but does anyone know where the "CBL" name comes from? Credit Bonds Ltd/Liability or something like that is my guess?
Nice one, Tiger! Treat yourself to a Friday drink at sundown!
:)
Apologies in advance if this sounds like a blatant ramp. I read a recent article in the AFR sounding out various fund managers/brokers on their best long and short picks for 2017. One of them - sorry, the name escapes me - picked CBL as his/her best long, mentioning inter alia that they are NZ's biggest exporter of financial services. I'm not sure that there's much competition in that particular regard but if the idea gains a bit of traction amongst Aussie investors we may well see further upside to the CBL shareprice. There, I said this may sound like a ramp so can anyone can verify the article?
Disc: Yes, I'm a holder.
It is this article - but it is paywalled.
http://www.afr.com/markets/best-smal...161218-gtdln7#
Thanks but Ive still hit the paywall.
Interesting paywall, not much of a wall, the content is too long to post here but I put it on my website:
https://stocktastic.co.nz/2017-small-cap-aus
Sorry the formatting is a bit off.