R&q Insurance Share Discussion Threads

[riverman77] 14/8/2019 17:06

The sell-off is very closely correlated with other more conventional insurers (e.g LGEN and DLG). I therefore see this as part of a general sector wide sell-off, rather than anything company specific. I took this as a good opportunity to buy a Brexit/recession proof business at bargain price.

[3800] 14/8/2019 11:29

"It's always worrying when a seemingly cheap share gets cheaper, but these markets are treacherous. I'll hold until I get a reason not to."

that can be the problem, sometimes its just more sellers than buyers other times someone knows something and by the time the info gets down to our level the share price has already taken a dive

[jonwig] 14/8/2019 10:48

Looking at the trades data for the past weeks, there might be a single seller, but I'm not experienced at assessing such things.

The research note (which I've linked to) by Capital Access on 4 July has a consensus forecast of brokers Shore, Numis and Eq Dev for 2019, '20 and '21:

PBT £41.5m £39.6m £47.3meps 19p 17p 21ppayout 9p 10p 12p


It's always worrying when a seemingly cheap share gets cheaper, but these markets are treacherous. I'll hold until I get a reason not to.

[lord gnome] 14/8/2019 08:20

I doubt the share price drop is anything company specific. I have several holdings with charts that look like this.

[red ninja] 14/8/2019 04:52

Jonwig
In last report income from this source was not huge so hopefully even at an increased amount should not have too much of a negative effect.

The interim should be out in months time hopefully they will steady the ship.

[jonwig] 13/8/2019 11:46

Ninja - yes, I'm puzzled, too. Their investment returns must be pretty poor at present - mostly government bonds and money-market funds. (2018: 1.2%, 2017: 1.6%.)

[red ninja] 13/8/2019 11:07

Looks like RQIH falling on low volume with the market generally.

I believe RQIH is better placed that most to thrive in Brexit due to its links to Europe/US. It should also hopefully thrive even if there as a Corbyn election win as it is headquartered abroad and has US shareholders.

I see from the previous note :-

"A key risk has appeared though - recent commentary the Federal Reserve suggests that we are no longer so obviously in a rising rate environment. Randall & Quilter has recently increased its exposure to floating rate notes, so a cut in rates could have a negative impact on investment income."

Also there is a prediction of more interest rate cuts.

[jonwig] 05/7/2019 17:49

The research note is quite interesting and doesn't have the usual format. They also explain the business in a clear, simple way - better than Equity Development. They did an earlier piece last year.

It's sponsored, of course.

[jonwig] 05/7/2019 11:51

A new research note (sponsored?). I haven't had time to read yet;

[edmonda] 10/5/2019 14:35

no wonder shares in RQIH have been doing well: a record deal, excellent results and infusion of further capital.

All discussed and the prospects for further growth outlined in new research note from Equity Development, freely available here:

[speedsgh] 10/5/2019 12:52

New Equity Development research note out...

Capitalising on opportunity -

"We expect patient investors to be well rewarded as the full benefits of R&Q’s
investment in its two core divisions become visible over the next 18-24 months..."

[jonwig] 07/5/2019 13:29

... and the sale had no negative effect on the sp? A very good signal, I'd say.

[speedsgh] 07/5/2019 12:01

Further to post #701, notification today of the sale of £3m shares at 186p by Chairman/CEO, Ken Randall. Still holds 11.4m shares (5.83%) of issued share capital following the sale.

[speedsgh] 03/5/2019 18:19

Trade of 3m shares at 186p at 13:36.

[lord gnome] 03/5/2019 06:33

Yes, we don't want any more give-away dilutive share placings.

[jonwig] 03/5/2019 06:31

Global acquisition completed, and they add:

"R&Q is well positioned to take on books of business of this size in the future and our 2019 pipeline is strong".

I hope they have the funds!

[topvest] 29/4/2019 19:52

All very positive. Happy to hold. A very strong management team, the old fashioned way.

[jonwig] 29/4/2019 16:36

Sharecast;

Numis said pre-tax profit was ahead of its forecast of £12.8m, while NTA per share was also better than its estimate of 115p, helped by forex gains.

Meanwhile, Shore Capital said the results were "excellent".

"While the benefits of the capital raise are unlikely to be reflected in the results until 2020F and beyond, it shows the confidence of management in the growth prospects of the business, in our view.

"The additional capital should allow R&Q to fully grasp the plentiful opportunities that we expect to be available in the coming years. With the Global deal now approved we have even greater confidence in our 2019F earnings estimates and make no adjustments to them today."

[speedsgh] 29/4/2019 10:03

They have in the past given an indication of the payment date for the return-of-capital distribution within the Final Results so not sure why they would not do so this year. This was from last year...

"Total Distributions per share of 8.9p (2016 8.6p) including a final proposed distribution of 5.4p (2016 5.2p) payable on or around 18 June 2018".

However, as jonwig points out, the details of the payment timetable are usually laid out in the Notice of AGM. The following was last year's announcement which was released on 17/5/2018...



Not a major issue for me.

[jonwig] 29/4/2019 07:01

I don't think they'll give dates at this stage because it has to be agreed at the GM. Did they in past announcements?

Yes, good results, with better still to come in the current year. I'm a bit confused by the continuing/discontinued activities bit and the size of the tax bill which seems to be derived from a deferred tax liability.

[lord gnome] 29/4/2019 07:00

Indeed, This-is-me. How odd. I shall assume that we get paid in June as in previous years. A small increase in the payout is most welcome, but best news is the very positive outlook. Let's see what the market thinks. A return to 200+ would be most welcome.

[this_is_me] 29/4/2019 06:46

Results look good with good prospects for the current year. Strangely it doesn't seem to say when we get a 'distribution' i.e. a dividend.

[topvest] 24/4/2019 20:34

Yes, good news. Secures most of this years profit when it completes.

[speedsgh] 24/4/2019 09:45

Welcome share price action since yday's announcement. Would be nice to see it continue the long term uptrend in place since Q1 2016 and head back to the highs of H2 2018 and beyond.