TWR - Tower Insurance.

[trader_jackson]

https://www.newsroom.co.nz/@business...-reimbursement

Sounds like Tower will get most (if not all) of what they are owed and EQC don't want to go into battle over it (am I reading that right?)... meaning the extra capital being raised is almost entirely not needed... but will mean Tower is rock solid.

Mr Market clearly not impressed as the share price is down over 10 cents since monday... another profit upgrade, increasing GWP, technology upgrade programme roughly on track (no big blowout... yet) and a small yet nice growth opportunity the purchase of the Youi portfolio provides clearly not enough to please it - and the prospect of another year without dividends is certainly not helping.

[King1212]

Well TJ..u never know if they decided to declare dividend as u mentioned the capital raise not necessary which will make tower strong. So...if all goes well ..who know they will declare dividend to return the extra capital....

[Vaygor1]

I am astonished the price dropped following the Youi acquisition announcement and lift in guidance. How narrow minded can the market be? It's like "We won't get a circa 5c dividend so lets beat the price down by at least that much"... when in fact earnings forecast went up and retained earnings are far more beneficial (due to taxation advantage) to all shareholders in the long run than a dividend payout.

In answer to the question, "Did TWR's SP, prior to the announcement, already have this priced in?", the answer, given the complete lack of market recognition since the H1 announcement, must be a resounding "No".

On top of this, prior to the announcement, SP of circa 77c per share meant the market valued 5 TWR shares at 5 x 77c = $3.85.
Post announcement, prior to the record date (all things being equal), 5 shares can be purchased for (4 x 77c) + (1 x 56c) = $3.64
And the price drops????
So today, at market close of 68c, those 5 shares can be bought for (4 x 68c) + (1x56c) = $3.28 = 15% cheaper then $3.85 pre a good-news announcement.

Have I got something completely wrong here?

4 more days left in TWR's financial year to seal it as a benign one re earthquake and weather-related claimable events.

[Scrunch]

From a balance sheet view the receivable is about 15c/share. If it's receipt is now significantly delayed and possibly in doubt, the assets underpinning Tower are less.

I however suspect more of the price drop is script supply/demand factors around a rights issue.

There's also a potential question mark around whether the acquisition is value adding or a tack on to try and make another capital raise justifiable.

[trader_jackson]

http://nzx-prod-s7fsd7f98s.s3-websit...608/308538.pdf

Clearly the market thought purchasing Youi was somehow detrimental to Tower... glad they have come out this morning saying quite the opposite... and confirming what I thought (small, but solid and good option for growth).

[winner69]

http://nzx-prod-s7fsd7f98s.s3-websit...608/308538.pdf

Clearly the market thought purchasing Youi was somehow detrimental to Tower... glad they have come out this morning saying quite the opposite... and confirming what I thought (small, but solid and good option for growth).

Why didn’t they do this in the first place mate

Still a big guess though isn’t it (sorry it’s an internal view of financial impacts)

Mind you their guesses in the past haven’t been too flash ...have they?

[trader_jackson]

Why didn’t they do this in the first place mate

Still a big guess though isn’t it (sorry it’s an internal view of financial impacts)

Mind you their guesses in the past haven’t been too flash ...have they?

Yea but winner... this time is different

[winner69]

http://nzx-prod-s7fsd7f98s.s3-websit...608/308538.pdf

Clearly the market thought purchasing Youi was somehow detrimental to Tower... glad they have come out this morning saying quite the opposite... and confirming what I thought (small, but solid and good option for growth).

Market not believing the bull **** yet t_j

[trader_jackson]

Market not believing the bull **** yet t_j

No, not believing the facts either (if you can count a profit upgrade as a fact)

[caveman]

How can I trade Tower's rights? The NZX posted a notice that they can only be traded on X-stream? I can't seem to trade on the Direct Broking platform. Thanks.