|Hardy Underwriting Group
||COM SHS 20P (DI)
||EPS - Basic
||Market Cap (m)
Real-Time news about Hardy Under. Bm (London Stock Exchange): 0 recent articles
|edmundshaw: well done folks. I left this one alone, but no hard feelings.
At least the Beazley share price is now up on the news they are NOT taking out HDU! :-)|
|1nf3rn0: A punt with a tight stop-loss. If a takeover goes ahead it should rise, if it falls through then I expect to share price to drop. But I think the potential rise outweighs the potential fall so the odds look decent.|
|1nf3rn0: Ha. Now they consider offers, after the share price has been decimated. I bet they are praying BEZ will offer the same price they offered last year... probably not though.|
|goldibucks: The Hardy Board made the right decision at the time in turning down the Beazley offer. It was a pitiful premium to net tangible assets adjusted for overprovisioning so it only offered shareholders a change of management and money in the bank plus a year of profit for the business. They didn't know there was going to be an earthquake in Japan and a near collapse of the Euro at the time they rejected the offer. I didn't hold then but if Beazley made another offer at a similar premium to tangible net assets, I would vote no. Peel Hunt estimate net tangible assets per share of 232p post the Q3 update and they are not particularly bullish so I will be buying more every month at this price. Although the share price has fallen from 300p to 190p, net tangible assets are only forecast to fall 14% from 270p to 232p and that is after a very long run of strong growth. Against that backdrop, Hardy have delivered an 8.5% increase in premiums this year to date and been able to attract external capital to carry on growing premiums in spite of internal capital constraints after an unprecedented run of catastrophe losses. Hardy still has the ability to generate excellent returns for shareholders on a pot of money per share significantly higher than the current share price and those returns are not as affected by economic woes as companies in other sectors or subject to UK corporation tax. The references to historical share prices are interesting because if you compare Hardy on fundamentals across those periods like net premiums written and net tangible assets per share you will see that Hardy is superb value sub 200p. Last time I checked, earthquakes led to higher premiums, not more earthquakes, so although I am annoyed by the Board's inability to pin down historical catastrophe losses, I will continue to add to my holding at every opportunity. I think Hardy will recover to 300p within 12 months.|
|inntolife: I agree very difficult to make the decision, but I have decided to keep away from this one. When compared to BEZ profit margin 14.75% BEZ, 4.96% HDU....Net income of Revenues 10.98% BEZ, 1.34% HDU...ROCE 4.34% BEZ, 1.75% HDU...
The last time the share price got around these levels was August 2006 £1.96 before that was September 2005 £1.92 and before that was 2003..
"My havern't the board done wonders"
The board should of taken the money and run IMO
As I said at the start I don't know or feel just how low this is going to go before it attracts another bid and I'm not prepared to put my money in it, but I will enjoy watching and hopfully learning a bit about how these sorts of things pan out.
BTW is Billinsgate still going?|
|1fox1: I would imagine Aussie floods are likely to impact HDU harder than most Lloyds ILVs due to their international profile (cost estimates coming in so far at approx. AU $5bn including disruption).
However, share price is likely to be underpinned by continuing buy-back and fact that many there are self-insured so possibly mitigating some claims, we'll have to wait and see.
Many Lloyds vehicles have rallied in December/Jan.|
|1nf3rn0: The market clearly disagrees massively with the board - share price currently at almost 25% discount to 350p, let alone the board valuation.
Maybe they were hoping a 3rd party would appear to make a counter-offer and have been caught out.|
|skyracer: the Hardy board would only be prepared to recommend a price substantially in excess of the Final Proposal
In whose interests are they acting? When the share price opens 100p below the 350p offer price then the offer was fair. Surprised the institutions invested in Hardy are prepared to stomach this.
I agree with little beaker, a special dividend or tender offer at 350p would be appropriate, particularily since the Board value Hardy "substantially in excess" of 350p!|
|little beaker: Following the recent underperformance of this share I raise its rating to "hold" from "sell". I think it is neither under or over-valued versus its peers.
I still like the sector overall, although pound strength will drag going forward. Sector consolidation rumours might be good for the share price.|
|dumpling: Share price barely affected by latest shake out - remarkasble for a financial share.|
Hardy Underwriting share price data is direct from the London Stock Exchange