TWR - Tower Insurance.

[Arbroath]

I'd be looking for 1-2cps in FY18 and c. 5c FY19 as long as things go realtively smoothly and appreciate that is a fairly big assumption.

[Schrodinger]

I think this will turn the corner, anyone remember the massively discounted Nuplex rights issue about a decade ago? That was a great money maker.

The $70m raise repays BNZ and also covers the chance they lose the Peak Re arbitration which leaves an underlying npat of $18-20m a year and Canterbury, finally, well provisioned in the accounts.

I won't bet the house on it as insurance can be a tricky business but I will take up my rights in full and with a post-rights average of around 70c I hope by FY19 they are paying c. 5cps in dividends = 7/8% yield. Thats if they aren't taken over once the balance sheet is cleaner in FY18.

My guess, and it is only a guess, is the share price is 80c+ by Christmas next year (barring no major earthquake).

DYOR as usual.

Ok ran some quick numbers (please correct as necessary):

QBE has:
$8B in GWP
$690M wages (cant find their wage bill but estimate 75% is wages of $920M total)
9%

TWR:
$306M GWP
$54M Wages (wages should be $35M or so...)
18%

There is some serious fat that needs trimming. Also some overpaid execs that need to be removed.

As mentioned previoulsy a very attractive T/O target with all the underperformance and fat..

[bull....]

Ok ran some quick numbers (please correct as necessary):

QBE has:
$8B in GWP
$690M wages (cant find their wage bill but estimate 75% is wages of $920M total)
9%

TWR:
$306M GWP
$54M Wages (wages should be $35M or so...)
18%

There is some serious fat that needs trimming. Also some overpaid execs that need to be removed.

As mentioned previoulsy a very attractive T/O target with all the underperformance and fat..

mentioned long ago on the thread about management fat .... your right plenty of room to reduce management exp , weather they do it though is another question

[Drummer]

For some reason I cannot download the document from nzx, is this only open to existing holders, if so, what's the recorded date?

[Schrodinger]

I think they have been discounting premiums to build market share. They may have some pricing flexibility next year but they have too much expense currently.

Either raise prices or cut the excess. I would like to see some movement on this to be confident. That $10M+ fat goes straight to bottom line.

[bull....]

For some reason I cannot download the document from nzx, is this only open to existing holders, if so, what's the recorded date?

https://www.nzx.com/announcements/310249

at the back i think it says 22 november as record date if you wish to buy now ,better have someone as confirm dont want to put you wrong

[Beagle]

Tower at least are more transformational than PEB

That's not saying much is it mate. Both have a very dismal track record of destroying shareholder value, (for very different reasons although some would question the management competencies of both)

[Drummer]

Thanks, just will not download for me..... net admin may have blocked.

Was wondering why SP had not dropped more, but this explains it somewhat.

[bull....]

Might be worth a punt but advise caution as to why the steep discount? If this is a guaranteed no brainer why do they need to discount so much.

Will be looking at the forecasts.

if they win millions back from litigation next year, thats the punt

[HITMAN]

If they value the company at $0.43 cents why are people paying $0.70 cents today? This share has got to dive IMO. You should be able to pick up at $0.40 in the near future, I hope I'm wrong but there current management is left wanting.