Highway Insurance Share Discussion Threads

[gorse] 14/10/2005 12:22

JWE

Selling after a significant director's purchase ... Strange.

Gorse

[gswredland] 14/10/2005 11:37

when did you have to be on the register to get the divi?how much was it chaps?

[neilsy] 14/10/2005 11:20

Received my divi cheque this morning.

[taylor20] 14/10/2005 11:19

karl, In theory dividend was paid today, but I've found the date you actually get it seems to vary from broker to broker (at least for nominee holdings).

E.g:
Halifax - reasonably prompt - within a week,
Squaregain - can be over 3 weeks!

[karldinnel] 14/10/2005 10:55

When is the interim divi supposed to be paid? I thought it was today!

[rivaldo] 14/10/2005 10:02

Fair enough jwe, nowt wrong with taking a profit! Still, I see this as steadily rising as income funds in particular top up for that massive final divi about to come, with the core business continuing to thrive.

[jwe] 14/10/2005 08:00

rivaldo-I`m afraid i just sold out of my 40k for a nice profit,purely because i think the markets are looking weak and preferred to see some of my holdings back in cash.A good undervalued company i believe and am sure i will be back.Good luck.

[gorse] 13/10/2005 11:18

He bought at 65p, so I topped up at 62.2p. Now my largest holding.

[rivaldo] 13/10/2005 11:14

Yep, I didn't really want to say too much yet jwe. I agree - it's good to see maybe a slight change of stance towards less, erm, "risky" stocks (to say the least!).

Today we have director buying at HWY - 9,700 shares, and at 65p too!

[jwe] 13/10/2005 10:08

The subscription website was MW to which i subscribe.Not usually his type of share this,still nice to see after doing his research he agrees with us holders.

[rivaldo] 13/10/2005 08:59

HWY was tipped last night by one of the subscription web sites with a very, very nice potential gain over the next 6 months. More details perhaps when subscribers have had a proper chance to buy in.

[rivaldo] 12/10/2005 13:37

Hard to believe the early gain has been lost - I suppose there's plenty with decent gains to bank from the climb from 40p.

Robbie Burns is certainly keen:

"Highway Insurance reported today it's bought another insurance company (and there I was yesterday thinking it was going to be bought itself).

This looks an excellent buy - shares were initially up 2p - up just 0.25p now - but this shows management are really determined to get shareholder value and my impression is targets for the share should be raised to 80p.

The market-makers are happy to drop the share to try and scare out small shareholders but as there is no real downside from here, here's one shareholder that is staying in whatever dramatic treeshakes they might try!"

[shrewdmole] 12/10/2005 10:40

the acquisition makes the 75p buy target in the broker note out dated based on increased earnings from this deal alone.

we could see a revised broker note on the back of this too.

sm

ps. alan, i'm with you a nice long term hold these for growth and divi's.

[alansmith23] 12/10/2005 08:54

"al u are not south african are you?"

Aughton, is that question was for me, the answer is not. I must be typing in an SA accent.

Also noticed Robbie Burns steamed into HWY again for a third time yesterday, here's an extract from his site (I hope he doesn't mind my quoting him here)


'In the meantime I topped up yet again in my holding of Highway Insurance (HWY) - this time picking up another 10,000 shares at 60.5p...

This share is ludicrously undervalued with fair value I think at 75p. The market cap is only £120m - this is way too low for a company whose profits are soaring.

It also looks to me like a superb bid target. If I was in charge of something like Admiral I would be very happy to buy it out for around the 70-75 mark.

Bound to be some consolidation in the market and I might strike lucky. By the way this is just me rambling to myself so please take it as that, I don't know anything!'

end of Robbie's quote.

My comment;

Not even considering selling at any price, dividend, fundamentals and takeover prospects make it far too valuable.

[jwe] 12/10/2005 07:52

If eps for H2 comes in at the same level as the last two years(and given H1 performance it wouldn`t be unreasonable to assume something better)HWY are trading on a p/e of less than 7.This announcement reduces that further and i believe thats way too cheap,still good upside from here(maybe 30%) imo.

[rivaldo] 12/10/2005 06:48

Excellent - the base consideration is a historic P/E of only 9.4, assuming full 30% tax and comes out of cash so will be extremely earnings-enhancing. And I like the sound of "we have a lot more growth planned for the future."

[janus62] 12/10/2005 06:22

Highway Retail adds over 60,000 policies with purchase of 1st Quote

[rivaldo] 11/10/2005 18:54

A 5p annual divi plus a 70p share price, with potential for more, would do me nicely.

FYI this month's Corporate Synergy Income Monthly research note just out says:

"Highway Insurance is a BUY. It trades on less than 8x earnings and offers a 8.4% dividend yield. The dividend is being hiked by 89% this year to 5.0p, covered 1.5x by earnings. Their underwriting book is profitable, investment returns have improved on their £380m portfolio and a new insurance broking division offers growth prospects. BUY Target Price 71p."

[gswredland] 11/10/2005 17:22

They may even be bought out these sort of levels.
Looks like we are off to the 70 p level..let's hope so!

[kenmitch] 11/10/2005 15:31

Up 3p today. They're motoring. Have felt since I bought, straight after the results and excellent dividend news, that 70p was a reasonable target. That would still give a yield of around 7% - so a rise beyond 70p is not that far fetched to bring that yield down a bit. The big issue is whether the huge dividend increase proves sustainable. If it is - or better still the dividend is even higher next year - then the share price could have much further to go. But they're in a very competitive market.Managememt seem shrewd - hope so anyway.

[rivaldo] 11/10/2005 13:48

Jwe, my definition of slow and steady is getting a little stretched! Looks like 70p might arrive a bit quicker than advertised...

I suspect/hope WNN might do the same at some point given the director buying.

[jwe] 11/10/2005 08:56

rivaldo-yes its better for the heart than stocks like WNN!Very little downside here ,just a question of when we get the next leg up.

[rivaldo] 11/10/2005 08:47

I like this slow and steady stuff...ticking up to new highs now.