Pity there are so many storms and fires these days ......cynics might say it’s insurors in general comeuppance for making so much money in past years by investing the premium float and making heaps from bad companies that caused climate change
And the award for the grossly over use of the words "strong growth" goes to.........that's right, Tower.
I counted 5 times in the Media release alone.
I guess if you just cherry pick out the highest growth figure "core NZ business" of 11.9% and forget about the rest of the business it's worthy of a "strong growth" (Even if you report another loss - 4 years in a row now).
The market doesn't seem overly excited about it though.
Alot of if,buts and maybe's but Tower are trading on 11.5x FY19 forecast earnings and a potential gross yield of 7.4% at the mid-point of the dividend policy. Given their track record probably worth waiting to see actual recommencement of dividends but the business does seem to be making real progress despite all the noise in the results the past 2 years+
Alot of if,buts and maybe's but Tower are trading on 11.5x FY19 forecast earnings and a potential gross yield of 7.4% at the mid-point of the dividend policy. Given their track record probably worth waiting to see actual recommencement of dividends but the business does seem to be making real progress despite all the noise in the results the past 2 years+
Most likely not anything like 7.4% gross!
There is a difference between "underlying NPAT in FY19 in excess of $22m" and "Tower will pay a dividend of 50% - 70% of reported NPAT"
At first, I was a bit disappointed, but then I saw guidance of $22m+ underlying, and after considering all the considerations, factoring in all the factors, and weighing up all the weightings, I thought there is a good chance NPAT will be pretty ok... say $17m... of which, say 60%, will be paid out in dividends... about 3 cents a share - 4% isn't great, but given TWR is a growth company (or this is the way management see it), that ain't to bad I suppose
Tower has been a dog since GPG forced it to sell all the valuable assets, Sold out and laughing to the bank No more take over opportunity for the poor shareholders unless you are stupid enough to wait for another 100 years
Are you suggesting the fee driven reef fish in the marger and aquistion parts of merchant banks are sensing the start of a trend and are casting about for takeover targets they can shop around?
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Originally Posted by trader_jackson
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