Originally Posted by
Arbroath
I think this will turn the corner, anyone remember the massively discounted Nuplex rights issue about a decade ago? That was a great money maker.
The $70m raise repays BNZ and also covers the chance they lose the Peak Re arbitration which leaves an underlying npat of $18-20m a year and Canterbury, finally, well provisioned in the accounts.
I won't bet the house on it as insurance can be a tricky business but I will take up my rights in full and with a post-rights average of around 70c I hope by FY19 they are paying c. 5cps in dividends = 7/8% yield. Thats if they aren't taken over once the balance sheet is cleaner in FY18.
My guess, and it is only a guess, is the share price is 80c+ by Christmas next year (barring no major earthquake).
DYOR as usual.