Like the way she wrote the share price as closing at XX.
Guess next stop must be XXX?
UNUSUAL RISE?
Tower says a number of significant positive announcements may be behind its share price rise in the last two weeks.
But Stock Takes can't help wondering if speculation around the sale of Vero's stake has been a factor.
Shares in Tower rose by 16 per cent between Tuesday February 27 and Wednesday March 7 from 67c to 78c.
Yesterday Vero revealed it had sold its 19.9 per cent Tower stake to US private equity firm Bain Capital for 80c a piece in a deal worth $53.9 million.
Tower's share price had been relatively flat since July last year. Since the beginning of last week it has only had one price sensitive announcement - its settlement with reinsurer Peak Re.
The agreement resulted in Tower getting $22m out of the $43.75m it had been seeking and will see a $15.6 mllion hit on its after tax profit this year.
A Tower spokesman said the settlement was positive because it had removed a significant risk from its balance sheet.
He also pointed to an update on its performance at its annual general meeting on March 1 that signalled strong growth above its expectations and the likely resumption of its dividend after being on hold since 2016.
"It has been pleasing to see the hard work our team are putting in to transform our business is delivering improving results, ultimately leading to increasing shareholder value."
Shareholders will likely be pleased to see the issue of Vero's stake resolved as well.
Vero was left holding the 19.9 per cent after the Commerce Commission turned down its application to take over Tower last year.
But it opens up more questions about what the new owner will do. Is this the start of a another takeover? Or just an investor taking a punt? Time will tell.
Good point. And yes, "A-" was the same rating CBL was holding at the time of its trading halt leading into suspension and liquidation. Good solid company with robust finances and a well caring and competent board.
Still - I don't think you can rely on this happening - rating agencies proved time and again that they are absolutely clueless - just think back at he GFC!
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Good point. And yes, "A-" was the same rating CBL was holding at the time of its trading halt leading into suspension and liquidation. Good solid company with robust finances and a well caring and competent board.
Still - I don't think you can rely on this happening - rating agencies proved time and again that they are absolutely clueless - just think back at he GFC!
Yup - Forsyth Barr's Credit Sail was AA+ rating and it went belly up at the first sign of trouble.
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