TWR - Tower Insurance.

[Beagle]

Hard to get enthused over Tower's profit trend

In spite of all the rhetoric about all the exciting things they are doing profit over three years basically gone nowhere-

F19 $27.4m
F20 $28.4m
F21 $26m expected

And that's precisely why I put them on a no growth PE of 10.5 (assuming 10 year Govt stock rate at 2%) x mid point of this years earnings of 6.1 cps = 64 cents per share.

Talk of profit growth is just that, "talk" and I ascribed no value to that probability. Was a lot of talk about Tower at the recent Auckland ST gettogether...I just listened and kept drinking Tui's. I just can't get warm about it. Unusually some extreme weather event happening every now and again, often more than once a year.