R&q Insurance Share Discussion Threads

[lord gnome] 11/2/2013 09:43

I defy any chartist to make any sense out of this chart.

[this_is_me] 11/2/2013 08:21

Nice start to the week.

[lord gnome] 08/2/2013 17:39

Spot on alter ego.

[alter ego] 08/2/2013 16:32

I haven't done the arithmetic but suspect it's the current yield divided by the price he paid.

[adam] 08/2/2013 16:14

Running yield is now 9.04%

eh?

How did you get that running yield?

[lord gnome] 08/2/2013 16:11

Snap. Bought in at 91.25 in Dec 2010. Running yield is now 9.04%. It's nice to get one right now and then. Smug Git ;-))

[this_is_me] 08/2/2013 15:19

So am I! I got mine at 90p over two years ago so I am glad to see a decent capital gain to go with the dividends.

[lord gnome] 08/2/2013 15:16

So now we know it was Henderson Global that bought all the shares. As they have gone all in one lump (almost) it certainly won't have done anything to aid liquidity. Henderson must have been happy to take them and at 110 they are already sitting on a nice paper profit.

[18bt] 08/2/2013 11:04

Of course the Randall's selling plus the IC note will be a welcome boost to the liquidity in these shares which will help institutional investors

[18bt] 08/2/2013 11:04

Of course the Randall's selling plus the IC note will be a welcome boost to the liquidity in these shares which will help institutional investors

[gary1966] 08/2/2013 11:00

Thanks IC. Put these on my watch list a couple of days ago and was happy to watch them drift more before taking a position.

GLA

[cestnous] 08/2/2013 08:34

Dim problemo my Lord

[lord gnome] 08/2/2013 08:28

Thanks for that cestnous. I wondered what had sparked the buying spree this morning.

[cestnous] 08/2/2013 08:04

From I.C

RANDALL & QUILTER (RQIH)
Aim: Insurance
Share price: 120p
Bid-offer spread: 118p-120p
Market value: £59.6m
Website:rqih.com
Founded in 1992 by executive chairman and chief executive Ken Randall and finance director Alan Quilter, Randall & Quilter (RQIH) is a specialist in managing the run-off of insurance companies and Lloyd's of London syndicates that have stopped underwriting new contracts, but have already settled liabilities arising from policies written.
This is a huge market estimated to be worth nearly £30bn in the UK alone - accounting for 15 per cent of the non-life insurance market - and in excess of $500bn (£316bn) globally. Managing the run-off of insurance companies and Lloyd's of London syndicates is also hugely profitable, which explains why Randall & Quilter's (R&Q) board has been able to pay out over 23p a share of dividends in the past three years. It's a sizeable operation, too, employing 400 professionals based in the UK, US, Bermuda and continental Europe, offering a wide service capability in both the 'live' and 'run-off' insurance markets. R&Q currently has a portfolio of 10 companies in run-off with net assets of £85.9m and owns a Lloyd's authorised managing agency and manages Lloyd's syndicates 102 and 3330, which are both in run-off.
R&Q's insurance investment business was the star performer in the first half of 2012, doubling operating profits to £6.47m, but the company's insurance services unit also makes decent returns from its principal activities of claims management, accounting, regulatory returns and reinsurance management. Profits here were up by 18 per cent to £2.3m in the same period. So, once you deduct central overheads and contributions from a couple of smaller divisions, the bottom line is that R&Q reported a 50 per cent hike in adjusted pre-tax profits to £4.6m in the first half of 2012. On the same basis, analysts at Numis Securities are looking for full-year pre-tax profits of around £9.2m and EPS of 13.4p, which will support a very progressive dividend policy: R&Q paid out dividends of 8.3p a share last year through share schemes, up from 7.65p in 2011 and 7.1p in 2010. To put that into perspective, at 120p, the shares are currently offering a chunky 6.9 per cent historic yield covered 1.6 times by forward earnings. They are modestly rated, too, on a PE ratio of nine. True, Mr Randall and his son both sold 1m shares each this week at 110p, but they still retain combined stakes of over 19m shares, or 38.2 per cent of the share capital, so I am not concerned by this selling.
The investment case is even more compelling when you consider that £13m of the company's net assets of £72.6m are in effect in the price for nothing. On a bargain rating of 0.95, and with the high-yielding shares trading 14 per cent below book value of 139p, R&Q is significantly undervalued. Buy.

[this_is_me] 07/2/2013 21:55

If the P/E ratio is very low then share buy backs are great because the company is in effect investing in its own shares when they are seriously undervalued. The problem can arise that those running the company might be good at doing so but are almost certainly not nearly as good at investment and often get their timing wrong and invest in the company's shares when they are overpriced. So caqlled professionals are also generally good at sales and not so good at investing, otherwise they would be concentrating on investing on their own account loke we do, so their advice is useless.

[red ninja] 07/2/2013 20:34

Well they say generally share buy backs are bad for investors. In the 2011 case it seemed to generally allow the chief holders to sell their shares at higher than market prices and once the company buy back stimulus was removed share price crashed.

[lord gnome] 07/2/2013 17:12

speedsgh - funny you should mention that. Do recall that a similar thing happened when the company bought back some of its own shares from a distressed shareholder back in 2011 and the Randalls sold a few of theirs as well - see link below. Just take a look at how the share price was run up ahead of the buy back and how it fell back afterwards. Does it remind you of anything recent?

[jonwig] 07/2/2013 16:34

speedsgh - we all love a good conspiracy, don't we!

But post #258 suggests that a recent broker upgrade and the TW tip (he has lots of disciples I believe) provided the up-spike which the Randalls decided to take advantage of.

The very positive thing was that millions of shares were absorbed so easily!

[speedsgh] 07/2/2013 14:56

If I was a cynic, I might suspect that the share price has been walked up recently to facilitate the Randalls' large share disposals a few days ago. Surely not. That would be a bit out of order, wouldn't it? Lucky we live in such an honest upright society.

[jonwig] 02/2/2013 11:15

Thanks for that - I'm sure increased deal activity spurred the rise in the first place, but then this 'great rotation' thing will have got anything yielding over 7% 'safely' in demand.

[lord gnome] 22/1/2013 16:26

Still moving up!

By the way speedsgh - pity I didn't follow swan368's tip on CICR :-(((

[speedsgh] 18/1/2013 21:36

If you check out swan368's profile + all his posts, you'll see how many threads he has been pumping CICR on in the last few days. Sorry, no choice but to...


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