Highway Insurance Share Discussion Threads

[taylor20] 21/9/2006 08:41

Totally agree Karl, I meant hardening as in higher premiums, as opposed to softening premiums.

Stupid terminology if you ask me, I always get hard and soft water the wrong way round too (hard water means its got minerals in it doesn't it?).

[karldinnel] 21/9/2006 08:20

taylor20. The recent news from Aviva about pushing up premiums suggests that the market will become less competitive - which has to be good news for Highway and other smaller insurers like Chaucer.

[oniabsta] 20/9/2006 18:21

Sold all my shares previously @ above 70p
Dipped my toe back in today, 5k @ 59.89 (not shown on trades)will be buying more if it drops further.

[taylor20] 20/9/2006 16:13

Directors misleading shareholders, surely some mistake!

If they do maintain the dividend, it presumably would have to be paid out of the reserves? Which they could do for maybe one year, but beyond that... (Although the 2.5million from the recent sale helps)

So HWY is basically a gamble on the motor insurance cycle hardening towards the middle of 2007 (which does seem to be the general consensus as far as I can work out).

Even if the final dividend is halved, at 61p its still yielding over 5.5%.

[leadersoffice] 20/9/2006 15:54

Karld... Full year divi hopefully maintained, I'm not sure they will maintain it. Certainly we are getting our int divi and we will get a final but I dont think it will 5p + . Be prepared for a cut.

[karldinnel] 20/9/2006 13:50

Phew! I was getting worried there. With the bid going to 58p I thought it was curtains for a moment. From a capital point of view I am now only just in profit, although the divi payments improve the situation somewhat.

Latest forecasts suggest the share is now rated at 10 times this year's forecast arnings. The divi, which the management said would be maintained at 5.3p for the full year, means a yield of almost 9% at these prices.

[chrismic] 20/9/2006 13:41

Just topped up. This share has been hammered too heavily and I believe the generous divi will help hold it relatively steady. Easy for me to say though as I had originally bought in at 40-45 and took profits at 70. Not going to be a great capital growth play from now on but one to tuck away in the income portfolio. Also always the chance of a takeover. DYOR

[karldinnel] 14/9/2006 11:27

Yeah, I originally got in at various points in the 40s, 50s and 60s, before selling half my stake above 80p. I then saw it go all the way to 90-odd pence and come tumbling back down without taking any more profit.

Bought some more when the shares were back in the 70s, but now I am so exposed that I'm just happy to wait for the divi payments. Thanks to previous divi payments, I'm still well in profit even if the shares fall a bit.

Agree with jpalmer that Dec-May could prove interesting: having the old CEO back on board could help and the promised maintained final divi shouldn't do any harm.

[gorse] 14/9/2006 10:59

Decided to follow the FD and buy a few more. No need for the FD to buy so many in a first tranche. Luckily, I top sliced earlier this year in the 80s and even as high as 93p. Div yield is looking very nice.

[jpalmer25] 14/9/2006 10:49

Hi karldinnel,

Everybody is on wait&see, or lost hopes mode, I think.
I sincerely hope HWY may do well dec-may period.

[karldinnel] 14/9/2006 10:33

Board seems to have gone dead. Anyone out there?

I see that a director appears this morning to have purchased 90,000 shares at 67p each! What are people's view on Highway now?

[oniabsta] 10/9/2006 03:22

Peter - have to agree with your sentiments, have sold all of my holding to.
dissapointed with results although they weren't unexpected (forcasts had been downgraded)I had expected the share price to fall on results announcement,i still think it will drift down as i don't see any upside pressure from here. May take a position at a later date at a lower price, if that is the case.

[petersinthemarket] 06/9/2006 18:28

NOT SO GOOD NEWS:
...''tough market conditions''
...a ''9% reduction'' in gross written premium against 2005
...''Interim profits down'' at £7.5 million (2005: £11.3 million)
...''difficult investment market''
...falling (2.5%) returns (2005: 3.0%)
...''conditions in the motor insurance markets remain challenging''
...LETS also not forget the wholesale changes to the Board of Directors
NOW we know what the row was all about.
Could they have been more honest and open with their shareholders?

GOOD NEWS:
...Interim dividend maintained at 1.6p per share
...Barring unforeseen circumstances the Board expects
to at least maintain the full year dividend at 5.3p per share

ARGUABLE POINTS:
...Richard Gamble, Executive Chairman said: ''This represents a satisfactory performance for the half year'' - HOW COULD IT?
...Highway is well positioned to take advantage of an upturn in the markets when this emerges - NO INDICATION OF HOW, WHEN, (OR EVEN IF) THIS MIGHT OCCUR!

Genuinely sorry guys, but this is too much for me.

After being a largish (14.4% of my portfolio) long term holder, I had too much tied up in HWY to take any further risk.

I sold all today at 71p - time will tell whether this was the best move or not.

Sincere best wishes for the future to all of you holders with stronger stomachs.
PIM

[karldinnel] 06/9/2006 06:30

Well, interim divi has been maintained and it is covered 1.6 times.

[stevefoster] 30/8/2006 16:57

Results are on 6/9, ex-dividend date is 13/9, according to their website.

XD date will apply to the dividend announced in the results on 6th.

[pinemartin9] 30/8/2006 16:41

share trades ex div on 14/9 - could they announce a cut in the div that would impact the interim dividend, or would they apply any change later?

[karldinnel] 30/8/2006 15:22

Actually, this movement down looks like v.bad news is on its way.

[sl9zgarret] 29/8/2006 16:40

Sounds good to me!

[karldinnel] 29/8/2006 16:10

At least the trades made today suggest that some people think the share is cheap below 70p. I really hope they don't cut the divi next week, though.

[petersinthemarket] 29/8/2006 13:23

Interims are due on Wednesday Sept 6th, so if anyone does know something we may expect to see early changes to the share price trend either at the end of this week or early next week.
PIM

[petersinthemarket] 29/8/2006 13:10

Todays announcement reads:
--------------------------
The Board of Highway Insurance Holdings Plc is very pleased to announce the appointment of Andrew Gibson as CEO. AG spent the last year as Group Finance Director of Equity Insurance Group. He was previously HWY's CEO in 2002–2005 and FDir from 1996–2002. His start date is yet to be confirmed and HWY will make a further announcement in due course.

Richard Gamble, Chairman of HWY said; ... are delighted to have secured the appointment of AG as CEO. He is a talented and experienced insurance exec and one who knows our business extremely well.

His appointment will complete the management restructuring announced in July and we look forward to building for the future.....
--------------------

It will be very interesting to see how the mkt reacts to both this and next weeks announcement. We could use some encouraging news.
PIM

[stoneme] 29/8/2006 12:51

1st August I was asking questions about 'new Board' - Now we have Gibson back as CEO. .

I for one think it is a good thing - Not sure about the story though, but in terms of his short stay at Equity and the (numerous) Board changes at Highway.

Anyone know anything?

Stone

[jpalmer25] 29/8/2006 12:35

Hi Kardinnel,

It seems like; everyone's hopes are fading away at the moment.
Unfortunately, I bite the bullet and swallowed my pride ages ago ...
As you see, it is relegated to 3rd band (league) already.

free stock charts from ADVFN.COM

[karldinnel] 29/8/2006 11:18

Slipping back again. Someone knows something about forthcoming results, or just MMs up to their usual tricks?