Highway Insurance Share Discussion Threads

[atkijo] 08/11/2006 20:59

Strange stock to short EC given that it is underpinned by a hefty dividend that only recently was confirmed as being 'at least' maintained by the directors, and this then backed up by director buying (and not your token £5k gesture effort, some £230k collectively at open market rates during Sept/Oct). Still, you will have your reasons and time will tell.

[effortless cool] 08/11/2006 20:42

ursus,

I'm one of life's optimists - if it was a good short in the high 60's, then it's an even better short in the high 70's!

I admit I'd be happier if at hadn't gone up almost every single day since i embarked on this endeavour

Effortful Cool

[miamisteve] 08/11/2006 12:48

I can only see the dividend increasing if profits have increased significantly. It's possible and you'd like to think that after a grueling few years Highway have managed to make some efficiency gains. Director buying and share price movement support this view.

[karldinnel] 08/11/2006 11:03

This is great!

[ursus] 08/11/2006 10:45

closed yet, effortless?

[karldinnel] 07/11/2006 15:48

Interesting. They had a hold stance not all that long ago.

[ursus] 07/11/2006 15:38

i'm not sure, but i have been told that numis have raised estimates and even suggested a rise in the divi.

[karldinnel] 07/11/2006 15:36

What do people think about the share price in the short term? And what's been driving the recent upswing?

[karldinnel] 07/11/2006 15:35

It's horrible. Stick to qualitative comment please.

[ursus] 07/11/2006 15:05

that is a very irritating message, winston.

[winstonplace] 07/11/2006 14:33

Bought the stock yesterday.
Largest trades first.

02/11/06 08:52 70.25 209,751 O 70.0 70.5 ? 0 0 419,502
02/11/06 08:52 70.25 209,751 O 70.0 70.5 ? 0 0 209,751
01/11/06 11:50 70.5 150,000 O 70.25 71.0 Sell 159,161 152,656 0
01/11/06 11:38 70.5 145,089 O 70.0 70.75 Buy 155,297 2,656 0
06/11/06 13:50 73.27 105,570 O 73.0 74.0 Sell 72,522 191,854 0
01/11/06 15:23 70.25 100,000 O 70.0 70.75 Sell 188,597 393,027 0
01/11/06 14:47 70.115 100,000 O 70.0 70.5 Sell 166,830 274,441 0
06/11/06 16:45 73.0 76,000 O 73.5 75.0 Sell 93,236 328,111 28,900
07/11/06 13:34 75.0 50,000 O 74.0 75.0 Buy 78,752 45,300 0
03/11/06 16:39 72.41 43,386 O 71.5 73.25 Buy 242,631 119,094 0
03/11/06 16:50 72.15 30,013 O 71.5 73.25 Sell 242,631 149,107 0
07/11/06 10:30 74.0 30,000 O 74.0 75.0 Sell 18,983 30,000 0
01/11/06 16:35 70.15 29,861 O 70.0 71.0 Sell 206,498 472,577 0
06/11/06 16:37 73.33 29,218 O 73.5 74.0 Sell 93,236 252,111 28,900
02/11/06 10:45 71.0625 28,000 O 70.0 71.25 Buy 39,503 38,000 419,502
02/11/06 17:15 71.8 27,733 O 72.5 110.0 ? 0 0 0
02/11/06 16:09 73.0 27,192 O 71.0 71.75 Buy 121,498 76,656 429,502
03/11/06 12:32 72.25 25,000 AT 72.0 72.25 Buy 166,466 96,343 0
03/11/06 12:32 72.25 25,000 AT 72.0 72.25 Buy 141,466 96,343 0
03/11/06 12:32 72.25 25,000 AT 72.0 72.25 Buy 116,466 96,343 0
03/11/06 12:32 72.25 25,000 AT 72.0 72.25 Buy 91,466 96,343 0
03/11/06 12:32 72.25 25,000 AT 72.0 72.25 Buy 66,466 96,343 0
03/11/06 12:32 72.25 25,000 AT 72.0 72.25 Buy 41,466 90,922 0
06/11/06 16:23 73.75 25,000 O 73.5 74.0 ? 84,508 222,247 27,900
02/11/06 14:29 71.7125 20,000 O 71.5 71.75 Buy 80,424 55,950 419,502
03/11/06 14:29 71.7125 20,000 L 0.0 0.0 ? 0 0 0
06/11/06 12:43 73.75 19,970 AT 73.0 73.75 Buy 49,922 7,844 0
02/11/06 09:32 70.075 19,000 O 70.0 70.5 Sell 0 19,000 419,502
03/11/06 12:07 71.75 15,000 O 71.5 72.75 Sell 11,804 30,922 0
02/11/06 10:29 71.2875 15,000 O 71.25 71.5 Sell 10,000 38,000 419,502
07/11/06 10:37 74.125 15,000 O 74.0 75.0 Sell 18,983 45,000 0
31/10/06 11:17 70.56 14,832 O 69.5 70.25 Buy 17,232 0 0
02/11/06 14:50 71.9 14,000 O 71.75 72.75 Sell 90,003 72,956 429,502
02/11/06 12:10 71.3125 13,700 O 70.25 71.5 Buy 59,603 38,000 419,502
31/10/06 16:35 71.5 13,416 UT 70.0 68.5 Buy 43,740 18,012 0
07/11/06 14:11 75.75 12,800 AT 75.75 76.0 Sell 106,952 58,100 0
06/11/06 09:07 73.75 12,702 O 72.5 73.75 Buy 26,052 0 0
03/11/06 13:51 72.5 11,514 AT 72.0 72.5 Buy 181,780 96,343 0
07/11/06 09:54 74.75 10,095 AT 74.0 75.0 Buy 18,983 0 0
06/11/06 16:23 73.45 10,080 O 73.5 74.0 Sell 84,508 222,247 2,900
02/11/06 14:39 72.0 10,000 AT 71.5 72.5 ? 90,003 57,150 429,502
03/11/06 12:31 71.5 10,000 AT 71.5 72.25 Sell 11,804 49,899 0
01/11/06 13:34 70.0 10,000 AT 70.0 70.75 Sell 160,568 170,866 0
02/11/06 09:36 70.5 10,000 AT 70.0 70.5 Buy 10,000 19,000 419,502
07/11/06 13:53 75.243 10,000 O 74.5 75.25 Buy 98,752 45,300 0
07/11/06 13:38 75.0 10,000 AT 74.0 75.0 Buy 88,752 45,300 0
03/11/06 16:28 73.0 10,000 AT 72.5 73.0 Buy 196,725 117,967 0
06/11/06 09:00 73.75 10,000 O 72.25 73.75 Buy 10,000 0 0
06/11/06 13:47 73.0 10,000 AT 73.0 74.0 Sell 72,522 79,284 0
01/11/06 15:54 70.0 9,950 AT 70.0 70.25 Sell 195,919 427,977 0

[karldinnel] 07/11/2006 09:42

Very little volume this morning, yet the price is edging up. Given that most brokers who follow this share seem to suggest a fair price of 70p this is intriguing.

[flashheart] 06/11/2006 14:11

Me too. Worth also looking at DWN. Good yield and cover together with recovery prospects. Reasonable volume today as well.

[winstonplace] 06/11/2006 14:08

Always looking for good income shares.
I like this one.

[effortless cool] 03/11/2006 21:19

ursus - I certainly got my timing wrong. However, articles like the one above suggesr it might yet come good in the end.

[ursus] 03/11/2006 15:34

think you might have this one wrong, effortless. my info is that hardening of motor rates is pretty nailed on for next yr. tho i accept that you seem a lot closer to the market than i am, my info comes (indirectly) from someone who is. benign investment environment still so i think there are much stronger than evens chances of the div being held. at the mo, it continues to be priced on the basis that a div cut is likely. so i'm staying long...

[makingheaps] 01/11/2006 13:54

My original motivation was similar Karl, following a piece in the Times it was identified as a takeover prospect and, if it turned out not to be ,then the dividend would be adequate compensation. A little more than a year on, I'm 80% up and the story is still valid. It is generally recognised that rates need to harden in the motor insurance sector and the easiest way to ensure that is consolidation. Hwy could still be a key player in that process.

[karldinnel] 31/10/2006 22:24

I think the divi is why most investors are here. Why not take 7.5% while it's on offer? I've been in this share since 40-odd pence. What attracted me to it in the first place was the divi and I've topped up since as the divi has been raised. I hope this progressive policy continues.

[makingheaps] 31/10/2006 18:54

Does anyone know what impact the disposal announced in September will have on earnings? I can see that they make a one off gain of £2.4m but what did these subsiduaries do to the bottom line in trading terms?

The interim statement contained a directors statement that the dividend would at least be held this year. The disposal proceeds and the directors buying should add further confidence to that statement. The running yield even after the recent modest rally is therefore 7.5%.

If you take the view that the dividend can be sustained beyond 2007 at this level then the yield will fall to 5% making the shares worth £1 or even 3.5% makin them worth £1.50.

We have a new chief executive as a catalyst, rapidly growing funds under management , 25% growth in the retail side forecast in terms of number of policies managed and expected rate improvements in 2007 all pointing to an omprovement in earnings year on year.

I am feeling very confident about the direction of this share and if it takes a while for it to happen I'm happy to take the dividends as my reward for the next twelve months.

[miamisteve] 30/10/2006 06:02

There is tremendous upside potential in this share once the company realise how to make a profit on it's underwriting. Motor insurance is cut throat, but others such as Chaucer have run profitable motor divisions year in year out. recent director buying suggests that dividend will be maintained which will support the share price at these levels even if they are unable to improve their ratio.

[troutisout] 25/10/2006 09:12

Looks to have broken out of the downtrend now and that came with increased volume, who knows?


free stock charts from ADVFN.COM

[troutisout] 25/10/2006 09:08

I doubt there is anything happening with regards a bid, although with consolidation happening within the industry, it is always possible.

This from Insurance Times 19th Oct,

HIGHWAY DIRECTORS DIP INTO THE MARKET
Directors have been actively buying shares in Highway with market sources claiming the shares are a bargain at 63p. Director Paul Cosh has twice dipped into the market to buy shares this month, purchasing 94,000 last week and 76,909 the previous week for a total of £109,000. At the end of September Elizabeth Gamble, the wife of chairman Richard Gamble, bought 50,000 shares for £30,000 while deputy chairman Peter Salisbury also bought 50,000 shares for the same price.

The purchases came despite the insurer revealing a fall in interim pre-tax profits to £7.5m from £11.3m, which was slightly below analysts' expectations

Highway's shares have been under a cloud, with motor premiums reaching the bottom of the cycle earlier this year. Six months ago they were trading at more than 90p, but have fallen by a third since then. However, the AA has said premiums are now beginning to rise again, which should provide a boost to Highway. As Insurance Times went to press, Highway had inched up 0.25p to 63p.

Heavy weight fund manager UBS has also been taking an interest in the company and on Monday disclosed that it had been buying shares taking its total interest to more than 8.1 million, a stake of just over 4%.

Trout.

[jpalmer25] 25/10/2006 09:00

Isn't that "bid story" goes every year winter time ?
Ramping the shares or fact ?
Many people are burnt because those unrealistic/speculate rumours.

Could anyone kindly give us the real story (if any) please ?

[effortless cool] 25/10/2006 05:45

Takeover certainly looks to me to be my only material downside.