TWR - Tower Insurance

[Left Field]

Noticed Invest Direct have reduced my shares today to allow for the 1:10 buy back capital return.

They also seem to have upped the last close SP to reflect these changes as my av SP holding is now valued at $1.4571 (versus last close at $1.43)

https://api.nzx.com/public/announcement/448612/attachment/439861/448612-439861.pdf

Nice to have the prospect of cash being returned 2 April at a rate well above my average holding SP. The bonus alone will pay my insurance bills for over 2 yrs! Been a great investment so far.

What happens to the TWR SP after trading resumes will be interesting.

[Stoploss]

Sharesight don't seem to have got this right or I'm horribly confused as to what's going on.

[Poet]

Noticed Invest Direct have reduced my shares today to allow for the 1:10 buy back capital return.

They also seem to have upped the last close SP to reflect these changes as my av SP holding is now valued at $1.4571 (versus last close at $1.43)

https://api.nzx.com/public/announcement/448612/attachment/439861/448612-439861.pdf

Nice to have the prospect of cash being returned 2 April at a rate well above my average holding SP. The bonus alone will pay my insurance bills for over 2 yrs! Been a great investment so far.

What happens to the TWR SP after trading resumes will be interesting.

I guess they have tried to compute a theoretical after-cancellation price.

the calculation will be assuming that your total investment is the same after cancellation as it was before.

So if you had 10 shares before cancellation then your total investment was $14.30.

You have lost one share and received $1.18 in cash so theoretically (according to sharesight) your remaining shares will be worth $14.30 minus $1.18 = $13.12 (or 145.7c for each of 9 shares)

anyway, that will all be moot once we see the actual price on Thursday.

[Left Field]

Brokers predicted TWR's post cap raise SP to range between $1.50 - $1.70 as I recall.

So it took a while, but today the market seemed to wake up to the implications of the 1:10 capital return and the SP has moved to $1.50 (ish) with an earlier big 1.8 mill crossing at $1.45 (clever.)

Happy to hold at 12% of my portfolio after using some of my anticipated cap return proceeds to buy a few more with my av SP over 50% below current levels. Hopefully well positioned. 

[Poet]

Maybe you don't understand the nature of index funds. If the post cap repayment price is lower, than the index obviously drops, and the index tracking fund will reflect this without the need for anybody to buy or sell shares.

That's what index funds are all about.

Well, now we are past the 21 March rebalance. I'm going to call it in my corner.

Trade volume yesterday was 2.2 million shares on a price rise of 2.5c to $1.475

That was index funds topping up as a consequence of the share cancellation.

Interestingly that 2.2 million volume is consistent with being a 10% top up for the 17 million shares that were traded ie (bought by index funds) on 21st October 2024 when TWR first entered the NZX50

[Basil]

It'll be interesting to see where the share price goes after this, given the unusually high volume on Friday which may or may not be related to extra demand regarding index adjustment.  Now that's done and dusted, where too from here ?

[BlackPeter]

Well, now we are past the 21 March rebalance. I'm going to call it in my corner.

Trade volume yesterday was 2.2 million shares on a price rise of 2.5c to $1.475

That was index funds topping up as a consequence of the share cancellation.

Interestingly that 2.2 million volume is consistent with being a 10% top up for the 17 million shares that were traded ie (bought by index funds) on 21st October 2024 when TWR first entered the NZX50

You have any hard evidence that index funds did buy? ... or is this just a case of first crower claiming the worm? Lets face it - your "evidence" so far is at best circumstancial .... and the rooster who crows first normally misses the feed ...

[Poet]

You have any evidence that index funds did buy - or is this just a case of first crower claiming the win?

Circumstantial.

[lorraina]

Bain selling .
Should be interesting.
TWR still trading on very modest ratios currently in my opinion.

[LoungeLizard]

Bain selling .
Should be interesting.
TWR still trading on very modest ratios currently in my opinion.

Question is - which way will the SP go?
All depends, I guess, on who they sell to and at what price.

[Basil]

https://api.nzx.com/public/announcement/449250/attachment/440604/449250-440604.pdf

Its hard to figure out why an investment company would build the maximum 19.9% stake allowed, (without a takeover) and then sell the lot ? 

[winner (n)]

https://api.nzx.com/public/announcement/449250/attachment/440604/449250-440604.pdf

Its hard to figure out why an investment company would build the maximum 19.9% stake allowed, (without a takeover) and then sell the lot ? 

They've held for 7 years

Bought Vero shares at 80 cents

Obviously not interested in Tower any more

[BlackPeter]

https://api.nzx.com/public/announcement/449250/attachment/440604/449250-440604.pdf

Its hard to figure out why an investment company would build the maximum 19.9% stake allowed, (without a takeover) and then sell the lot ? 

They well might have noticed that they hold a high risk stock which currently trades at a premium. Given that even so called "smart money" can't predict future adverse weather events (other that they will be more frequent, we all know that), they prefer to sell as long as the SP is high.

Makes sense to me.

[LoungeLizard]

They've held for 7 years

Bought Vero shares at 80 cents

Obviously not interested in Tower any more

Yep, tends to be the modus operandi of private equity firms - invest in an undervalued stock then, at the right time, sell and move on to the next target. Market doesn't appear to be fussed one way or the other.

[lorraina]

Well the TWR buy back money is in the bank ready to be recycled.lol.