TWR - Tower Insurance.

[macduffy]

This issue is a bit unusual though in that it is a renounceable entitlement issue with rights trading, but also, ostensibly, allows shareholders to apply for additional shares.

Will be interesting to see how many additional shares are actually issued to shareholders, compared to the number taken up by underwriters.

[Hoop]

No point buying during rights issue. Too much profit at current sp for underwriters. They will supply stock post-rights issue to take their profits.

Can always count upon at least 5% shortfall. In this case, $4m plus of cheap stock for underwriters to make a profit on. At $1.60, 20% profit on each share.

Yeah ...the heads price can be under pressure during the rights issue and ex period.

So far the rights are priced at full value and are behaving with minimal volatility (A Boring Rights toy) ...telling us that so far the market "assumes" that the "possible" wave of sellers after the 23 Sept won't be enough to depress the price further ...but bugger all upside either.

.... Still 1 1/2weeks to go for Mr Market to change its mind.

[Walfootrot]

I think McD is correct- it will be very interesting to see how many took up the offer of extra shares- i for one did.

Will this information be published eventually?

[RRR]

TWR has been a quiet performer...I am quite happy to hold even if the price drops after the record date..In fact i will consider buying more if the price drops below $2.00..EPS has been growing since last 4-5 years... Has any other significant company in NZ grew EPS during recession?? I am not sure..

Current price $2.17-PE of less than 10 and Price/Book value of <1.5. I think TWR is still undervalued. There is still room for growth for at least 4-5 years given that NZ insurance market is undergoing consolidation and TWR will benefit..Div yield of 4.5% at the current price. Upgrading their computer systems will further reduce the costs and improve profits in a few years and their funds under management will grow quite significantly than expected..

I am a long term holder and we will see what happens in the next few years..Good luck Belg..

[ratkin]

Price has almost doubled up since march , proved to be one of the better bargains to come out of last years market panic

[_Michael]

Interesting to see TWR appear on the NZX release this week among top 10 most "short sold" stocks.

Wonder if the rally has some of those guys scrambling to cover their shorts? Risky business that short selling!

I hold as while the insurance business is stable and ticking over nicely, their exposure as one of the default providers to KIWISAVER funds under management may provide for serious growth to their investment management business over the next 5-10 years.

Although expect they may even get taken out in the next 3 years...

[ratkin]

Very positive address to the shareholders today . That 1.30 last march starting to look like money well spent.
They seem very bullish in their outlook despite "challenging conditions"
Look like this is one stock we wont need to worry about for a while

[Anna Naum]

Was it Tower that took a hair cut the last time there was a big storm in Fiji?

[macduffy]

2009 among least costly for insurers

Should be good for TWR. Charts say TWR still in its uptrend. Fundementals say undervalued.

Except of course that the market looks forward so recent and current events will carry more weight. TWR will probably have some hefty claims from (fairly) recent Pacific events but probably not from the Queensland storms, unlike QBE, IAG, SUN etc.

I would think that the potential loss of the ANZ National Bank business, said to represent about a third of TWR's premium income, would be a bigger concern.

I hold TWR, from the Govt Life demutualisation, but prefer QBE as an investment.

[ratkin]

These sort of events always happening , nothing to stress over , they are an insurance company