|Broker Network Holdings
||EPS - Basic
||Market Cap (m)
Real-Time news about Broker Network (London Stock Exchange): 0 recent articles
|geovest: I'm off on holiday for a few weeks. Hope to see a higher share price when I'm back around the 7th of Dec.|
|geovest: ramu, the volume is too low to be significant, unless there are delayed trade announcements still to come. We'll have to wait and see. Happy with the share price though! ;-)|
|geovest: kenlum, I'd rather see the share price double over the next 2-3 years than a quick 20% profit. Remember, even at the current share price it is only trading on a forward PE of around 14 and I expect that the actuals will again exceed forecasts.
Today's rise may be in anticipation of a trading update seeing that the half-year ended 31 October.|
|lomax99: The FT's weekend share section had the following:
'Good value with defensive qualities - Broker Network, an independent network for community insurance brokers, has been attracting admiring glances at a time of growing pressure on premiums. Three weeks ago, the company said it had received an approach, causing its shares to jump 9 per cent on the day. Eleven days later the offer - from a mystery party, rumoured to be rival Towergate - was rejected. The share price of the company, which has a market capitalisation of £77m, is now sitting below where it was before the bid announcement. It is, however, unlikely to stay depressed for long. Broker Network has defensive qualities. By attracting smaller insurance brokers to its network, members get a slightly higher commission rate on sales, while larger insurance companies can outsource work through the organisation. As a result, full-year 2007 results revealed sales up 45 per cent at £10.7m and group pre-tax profits doubling to £4.8m. But risks remain. The retail business leaves it open to the full risks of insurance underwritten by those members, higher costs and cash-flow drain. The shares trade on 11 times prospective earnings for 2008, however, and still look good value.'
Not sure about the comment about being left open to the 'full risks of insurance underwritten', surely it is the insurer who bears the end risk - unless they have laid it of with re-insurance themselves - i.e. not BNH? (or is this article just referring to the Lloyds operation?|
|lomax99: I note that that well know basket case Erinaceous (ERG) has just lost another 20 staff, this time on the Insurance side with the staff grabbing a life raft offered by Towergate.
Towergate were rumoured to be the party interested in BNH, I doubt that the extra 20 staff will provide enough of a distraction - however if they do come back with an improved offer for BNH it needs to be at least 40%+ higher than they existing share price, hopfully they will have lost interest.....|
|stegrego: supreme mo - 7p as a percentage of the share price has been reducing all the time -
for instance - 7p at a 200p share price is exactly the same as 14p at a 400p SP
Its the percentage spread and not the value of it that you should look at|
|geovest: Galwebay, yes the BNH share price went down after float, but the profitability continued to rise throughout, which is the big difference in my view. I continue to keep an eye on Cobra as a competitor to BNH and to see how they develop, but the recent results were very disappointing. Cobra added quite a lot of cost in the run-up to listing and I don't expect full year results to be good either.|
|galweybay: thanks geovest and noted but dont forget BNH went through a rocky period just after their floatation when share price went down to about 60p after floatation price was pitched at 71p. interesting but lets wait and see what happens|
|dreggspicker: Jolly good find Geo, double edge sword buying brokers out, may cost a lot to acquire more of them from now on, but this has got to mean BNH share price is still way too low, and if we get a surprise bid, there's no way we are going to go cheap|
|david77: Blame me for today's drop. I had been buying AIM listed shares to get the lower CGT rate after a year or two. I had loads of IFL International Ferro Metals - but they have said that they will be moving to the main market soon - so I opened a spread-bet a/c to hold IFL - effectively. You bet on the IFL share price instead of buying the shares - a nonsense but don't blame me.
The upsides are that there is no CGT on gains and the margin requirement is just 25% - they let you spend 75% of your cash meaning that you can buy three times as many shares.
The downsides are that you cannot offset spreadbet loses against gains on shares and when the market takes a wobble, you must have cash to meet falls in the underlying share prices.
I have been guilty of over-trading - buying all that I can afford and not keeping a cash pot to cover losses. I have held BNH shares over a year so suffer a lower CGT bill on this share compared with most of my holdings - so I have been selling BNH to build a cash pot to cover potential losses on spreadbets. I hope that I don't need to spend the cash pot - but I now know that I can meet any margin calls if I have to.
So nothing wrong with BNH - except that I might need the cash.|
Broker Network share price data is direct from the London Stock Exchange