Lancashire Share Discussion Threads

[cambium] 30/10/2007 10:11

bodes well for LRE

St James's Place added 11 to 394-1/2 ahead of a Q3 figures due on Thursday, while the stock was pushed higher by a Panmure Gordon upgrade.

This morning, Panmure said it thinks the investment markets will be buoyant during the next 12 months and it anticipates strong growth from SJP. It has consequently raised its recommendation from 'hold' to 'buy' and maintains its price target of 470 pence

[cambium] 30/10/2007 09:15

topped up at 3.79

[bigbigdave] 30/10/2007 08:06

Me too 8-)

[nurdin] 30/10/2007 08:02

Joined you here :o)

[cockneyrebel] 29/10/2007 20:49

Quite remarkable results the more I read them.

These are on a PE of about 4 for the year ending Dec 31. They are going to do £50m share buy backs and they say they will be making a special divi payment that is 50% of profits which should be 45-50p.

So for £3.75, if you allow for getting the 50p divi after the end of the year the net buy price is 3.25p. They will do 92p eps before doing the £50m share buy back it seems. You're actually buying a net PE of 3.5!

This is a co who's pre-tax profits doubled this quarter! Ok, insurance cos trade on PE's of 6-8 on average but this is an above average performance on a PE well below average.

All imo, dyor etc.

CR

[cockneyrebel] 29/10/2007 17:37

yes, it seems a very interesting co in that their model means that any major disasters should not have a material effect on their results.

As you say, the webcast says they have no sub-prime and no CDO's.

in just 9 months they have done 67p eps in the first 9 months. 24.7p eps in Q3 - carry that on in Q4 and that's nearly 92p eps for the current year.

They plan a $100m buy back which would increase the eps by 5% to nearly £1 a share. Add to that they have plans for a 'substantial' special divi too.

PE has to be under 4 on that basis and with $100m share buy back that has to underpin the price further still surely?

CR

[cambium] 29/10/2007 17:20

safe too

The portfolio contains no sub-prime
securities. All securitised holdings are either government or agency securities
or are rated AAA.

[cambium] 29/10/2007 17:17

Great time to issue results too, no one will notice

he he

[cockneyrebel] 29/10/2007 16:56

Pretty fabulous results just out.

These look like they are on a PE of 4.5 or less and with share buy backs may be lower.

They plan a $100m share buy back and they intend to pay a substantial special divi.

Well worth a read through the results imo.

CR

[cockneyrebel] 29/10/2007 08:32

Am long, too.

CR

[typo56] 26/10/2007 18:50

Q3 results after close on Monday. You can listen to their H1 webcast at

[puku] 06/8/2007 12:22

Already made $171 in first half for eps 60p, and third qtr going well. Lot depends on US wind storms. Could be very very cheap on possible PE below 5.

[sruk77] 05/8/2007 22:53

Underwriter Lancashire is being tipped to produce profits of about $180m on sharply higher net premiums of about $430m.

[philo124] 22/5/2007 11:23

Came accross this stock; anybody following it??
Philo

[artful dodger] 14/12/2005 22:29

here's a newcomer to AIM, with a healthy wedge of money behind it already.
insurance play with directors experienced in their field.

insurance stocks starting to pick up after years in the doldrums, so an opportune time to float.

the company aims to take advantage of the post -Katrina hike in insurance premiums. Simple enough -companies that have been hit have to raise their premiums, so newcomers to the market gain without the payouts.

risks? -certainly.
new company with no track record. insurance obviously carries risk inherent.

I bought on float day - I believe the company is right sector:right time

how well we do from here remains to be seen.