Thursday, September 15, 2005
SVB results tomorrow
Since my sale of Ben Bailey and further purchase of SVB, the company now makes up a much larger portion of my portfolio. SVB announces interim results tomorrow. For those interested, the announcement will appear at UK-wire at 7 a.m. Less than twelve hours to go.
The key numbers for SVB will be:
The shares currently loiter at 27p to buy. At the last announcement, net tangible assets stood at 31.6 per share. As a result of the huge losses suffered in the discontinued business, SVB has for a number of years struggled to make a profit. I am confident tomorrows interims announcement will confirm SVB as a solidly performing insurer, with a combined ratio hopefully of less than 85%. For the shares to advance substantially, a reinstatement of the dividend would help, as would earnings per share above 3p and net tangible assets above 33p. I think all of these are very likely to be announced tomorrow.
The only matters I remain nervous about however are the size of loss provision utilisation and the latest estimate on the effects of Katrina.
Tomorrow's result could have a huge bearing on portfolio performance in September.
The Artful Dodger
The key numbers for SVB will be:
- Earnings per share
- Net tangible assets per share
- The estimate of losses suffered at the hands of hurricane Katrina
- Utilised losses from the exceptional 2004 reserve for discontinued business units
The shares currently loiter at 27p to buy. At the last announcement, net tangible assets stood at 31.6 per share. As a result of the huge losses suffered in the discontinued business, SVB has for a number of years struggled to make a profit. I am confident tomorrows interims announcement will confirm SVB as a solidly performing insurer, with a combined ratio hopefully of less than 85%. For the shares to advance substantially, a reinstatement of the dividend would help, as would earnings per share above 3p and net tangible assets above 33p. I think all of these are very likely to be announced tomorrow.
The only matters I remain nervous about however are the size of loss provision utilisation and the latest estimate on the effects of Katrina.
Tomorrow's result could have a huge bearing on portfolio performance in September.
The Artful Dodger
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