Yes its been a good run over the last 6 months. Fed on by a flow of positive news along the way. New CEO and Chairman and exit of GPG have all been big positives in my view.
I am guessing this stock is + 8% by half year or more if the Kiwi goes lower and Re rates continue down. What do you think?
Could be more, it depends on the share buy back, at $2 they would be looking at getting about 17m shares on market, the stock can be fairly thinly traded at times. There is the potential for a spike when they start buying.
buyback would take shares on issuee down from 175m to 158m odd at $2 more if the price is lower, increase earnings per share and if they acheive a result of npat the same or better than this result higher dividends this time next yr so at todays price you could get maybe 15-16cps div next yr for a yield of nearly 8%
buyback would take shares on issuee down from 175m to 158m odd at $2 more if the price is lower, increase earnings per share and if they acheive a result of npat the same or better than this result higher dividends this time next yr so at todays price you could get maybe 15-16cps div next yr for a yield of nearly 8%
There is also the extra $50m the Reserve Bank is requiring Tower to hold in addition to its minimum solvency margin ($75m). It is a reasonable expectation (to me anyway :-)) that there will be additional capital release at some stage during the year.
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Originally Posted by Baddarcy
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