Author: therawinformant

Is the Brickworks Limited (ASX: BKW) share price a buy? The company held its annual general meeting (AGM) yesterday.

AGM update

Property trust

The construction business gave some more details about its industrial property trust’s progress that it owns half of together with Goodman Group (ASX: GMG). At the end of FY20, its total assets stood at over $2 billion. After including debt, Brickworks’ share of net assets was $727 million.

It said that development activity by the property trust has continued at an unprecedented scale. At Oakdale West in Sydney, construction of the Amazon distribution facility is well advanced and is due to be completed in September 2021. Brickworks also said that infrastructure works are also proceeding to schedule and will allow construction of the Coles Group Ltd (ASX: COL) distribution warehouse to commence early in 2021.

Once these two facilities are completed, net rental distributions will increase by over 25% and gross assets held within the property trust is expected to exceed $3 billion. Management said that there is sufficient remaining land to provide at least a further five years of development.

Regarding the property trust, Brickworks managing director Lindsay Partridge said: “The COVID-19 pandemic has only accelerated industry trends towards online shopping, and this is fuelling demand for the company’s prime industrial property. Interest from potential new tenants is strong, with discussions well underway with several parties in relation to additional leasing opportunities within the property trust.”

Building products

Brickworks said that its Australian building products division has made a strong start to FY21, with first quarter earnings well ahead of the prior corresponding period.

Its home builder customers have a solid pipeline of work for the remainder of the financial year, underpinned by the various government stimulus measures currently in place in each state. However, in Western Australia trading conditions remain difficult.

Brickworks is in the middle of a significant capital investment program to strengthen its position in key markets. The Southern Cross Cement terminal was completed in 2020 and the construction of the $75 million Australian Masonry plant in Sydney is well on track for commissioning in 2021.

At Horsley Park, it has demolished the old brick kiln and associated equipment at the second plant, which will allow the construction of a new $125 million face brick plant. Brickworks believes this will be the most advanced brick plant ever built when completed.

North America

North America sales in recent months have been below expectations because of impacts of COVID-19. However, it is still the leading brick maker in the north east region of the US.

Brickworks said that the deferral of many projects by state authorities due to financing concerns and the uncertainty relating to the US election have caused a slowdown in non-residential construction activity.

Despite that, Brickworks said that it was pleased with the underlying performance of the business and the progress it has achieved over the past two years.

Brickworks is confident that once conditions normalise the North American operations will deliver improved earnings and growth for many years to come.

Is the Brickworks share price a buy?

The construction business said that it’s in a strong position with a conservative debt level and a diversified portfolio of attractive assets.

Brickworks mentioned that until a vaccine becomes widely available, there will still be quite a lot of uncertainty. The company also mentioned that Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is expected to deliver a stable and growing stream of earnings and dividends over the long-term.

The Brickworks share price went up around 4% in response to this update. The Motley Fool Dividend Investor service still rate Brickworks as a buy. 

More reading

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• ASX 200 jumps 1.2%: Technology One results, Brickworks update, gold miners sink
• Why Brickworks, Mesoblast, Qantas, & Telix shares are storming higher
• Brickworks (ASX:BKW) share price on watch after trading update
• ASX 200 events this week that could move the market

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you wanting to add a growth share or two to your portfolio? Then you might want to take a look at the ones listed below.

These ASX growth shares have been tipped to deliver strong growth in the future. Here’s what you need to know:

a2 Milk Company Ltd (ASX: A2M)

A2 Milk Company is a leading infant formula and fresh milk company. Over the last few years it has grown its earnings at an exceptionally strong rate thanks to the increasing demand for its premium infant formula in the lucrative China market.

Things have not been as easy for the company this year because of the pandemic. Panic buying and pantry stocking at the height of the pandemic pulled forward sales, reducing demand during the first half of FY 2021. In addition to this, travel bans have impacted the daigou channel and put a dent in its sales.

While this is likely to weigh heavily on its FY 2021 result, management remains confident that this is only a temporary headwind and its growth will resume once trading conditions improve. One broker that agrees is Morgans. It recently put an add rating and $17.28 price target on the company’s shares. It believes the company’s challenges are transitory and feels recent share price weakness is a buying opportunity.

Altium Limited (ASX: ALU)

Altium is a leading printed circuit board (PCB) design software provider. It has also been growing at a very strong rate over the last few years. This has been driven by increasing demand for its software thanks to its exposure to the booming artificial intelligence and Internet of Things markets.

And while the pandemic is also weighing on its performance and will stifle its growth in FY 2021, management remains very bullish on its longer term prospects. At its recent annual general meeting, it reaffirmed its aim of dominating its market and growing its revenue to US$500 million by 2025-26. This will be a 150% increase on FY 2020’s revenue.

At present, analysts at Morgan Stanley have an overweight rating and $40.00 price target on Altium’s shares.

More reading

• Here are the 10 most shorted shares on the ASX
• Top brokers name 3 ASX shares to buy next week
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• Is the Altium (ASX:ALU) share price a buy?
• Brokers name 3 ASX shares to buy right now

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia owns shares of and has recommended A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for a way to beat the ultra-low interest rates on offer with term deposits, then you might want to look to the share market.

Two ASX dividend shares that have been tipped as buys are listed below. Here’s what you need to know:

Bravura Solutions Ltd (ASX: BVS)

Bravura is a leading wealth management and transfer agency software solution provider. It is best known as the company behind the Sonata wealth management platform. This increasingly popular platform streamlines the administration of a full range of wealth management products. A testament to its quality is the growing number of financial institutions using it. But it isn’t a one-trick pony, Bravura has a number of other solutions with large addressable markets. This includes the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.

According to a note out of Goldman Sachs, its analysts have a buy rating and $4.50 price target on its shares. The broker is also forecasting a 10.6 cents per share dividend in FY 2021. Based on the current Bravura share price, this represents a 3.1% dividend yield.

Coles Group Ltd (ASX: COL)

This leading supermarket operator has been kicking goals in 2020 despite the pandemic. In FY 2020 the company delivered a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million. And although COVID restrictions have eased, the company has continued to deliver strong sales growth in FY 2021.

This caught the eye of analysts at Goldman Sachs, who recently increased their earnings and dividend forecasts for the year. In respect to its dividend, the broker expects the company to pay a fully franked 64 cents per share dividend in FY 2021. Based on the current Coles share price, this represents a 3.5% dividend yield.

More reading

• ASX 200 rises more than 1% on Tuesday
• Here’s why the Bravura Solutions (ASX:BVS) share price raced higher today
• 2 cheap ASX shares to buy right now
• ASX 200 Weekly Wrap: ASX continues to climb, despite outage
• 3 leading ASX dividend shares to buy for income

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was in fine form and stormed notably higher. The benchmark index jumped 1.3% to 6,644.1 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to rise again.

The Australian share market is expected to continue its rise on Wednesday. According to the latest SPI futures, the ASX 200 is expected to rise 37 points or 0.55% at the open. This follows a very positive night of trade on Wall Street which in late trades sees the Dow Jones up 1.5%, the S&P 500 jump 1.6%, and the Nasdaq rise 1.4%. The Dow Jones broke through the 30,000 points mark for the first time.

Fisher & Paykel Healthcare half year results.

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price will be on watch this morning when it releases its half year results. The medical device company is expected to deliver strong first half growth thanks to increased demand for ventilators during the pandemic. In August, the company provided full year guidance for operating revenue of approximately NZ$1.61 billion and net profit after tax of NZ$365 million to NZ$385 million. An update on this guidance is likely today.

Oil prices jump higher.

Energy producers including Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO) could push higher again today after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 4.3% to US$44.92 a barrel and the Brent crude oil price has risen 3.8% to US$47.81 a barrel. This appears to have been driven by a combination of vaccine news and President Trump allowing the Biden administration transition to start.

Gold price continues to sink.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) could come under pressure after the gold price sank lower again. According to CNBC, the spot gold price dropped a further 1.85% to US$1,803.30 an ounce. This is being driven by reduced demand for safe haven assets.

Harvey Norman AGM update.

The Harvey Norman Holdings Limited (ASX: HVN) share price could be on the move today. The retail giant is holding its annual general meeting and traditionally provides the market with a sales update at the event. Expectations are high after its rival JB Hi-Fi Limited (ASX: JBH) delivered a strong update at its meeting last month.

More reading

• Santos (ASX:STO) share price on watch following Narrabri Gas Project approval
• ASX 200 rises more than 1% on Tuesday
• ASX stock winners from the $23 billion Victorian state budget
• Macquarie’s model portfolio of ASX stocks to hold in the post-COVID recovery
• Why the Oil Search (ASX:OSH) share price is up 48% in November…and gaining again today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Xero Limited (ASX: XRO) share price will be in focus on Wednesday following the release of an announcement after the market close.

What did Xero announce?

This afternoon Xero announced the launch of an offering of US$600 million senior unsecured convertible notes due in 2025 to be issued by its wholly owned subsidiary, Xero Investments, and guaranteed by Xero.

Xero’s CEO, Steve Vamos, advised that the note offering represented the next step in its ongoing program to optimise the company’s financial structure as it executes its strategic priorities.

According to the release, the notes will be listed on the official list of the Singapore Stock Exchange and their conversion will be settled in cash. This is unless the issuer elects to physically settle the conversion through the issue of Xero shares to the relevant noteholders.

Why is Xero launching a notes offering?

Xero advised that it will be using the proceeds, after all costs, to repurchase its existing notes, fund potential acquisitions and strategic investments, and for general corporate purposes.

Xero’s chief financial officer, Kirsty Godfrey-Billy, expects the notes offering to create value for shareholders.

She said: “The new offering, combined with the restructuring of our existing convertible note liability, will benefit shareholders and provide Xero with additional financial flexibility to pursue strategic investments, and deliver ongoing innovation and support of our customers and partners.”

Xero is no stranger to making bolt-on acquisitions. Just last month the company completed the acquisition of Waddle.

Waddle is a cloud-based lending platform that helps small businesses access capital through invoice financing. Management noted that the acquisition aligns with its strategy to grow the small business platform and to address critical small business financial needs.

That acquisition was for an upfront cash payment of A$31 million and subsequent earnout payments based on product development and revenue milestones of up to A$49 million.

More reading

• Is the Xero (ASX:XRO) share price a buy?
• 3 big things you might have missed from the Xero (ASX:XRO) results
• Why Orocobre, Ramsay, Webjet, & Xero shares are dropping lower
• The ASX 200 fell 0.5% on Thursday
• Why are ASX tech shares all over the place today?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In this article are two ASX shares that are rapidly growing and rated as buys.

The Motley Fool investment services are always combing the market for some of the best opportunities for returns.

These are two businesses that are currently rated as buys by one of the services:

Bapcor Ltd (ASX: BAP)

Bapcor is the largest auto parts business in Australia and New Zealand. It has a variety of businesses. Burson Auto Parts provides parts quickly to mechanics across the country. It has a variety of wholesale specialist businesses including AAD, it also recently acquired the Commercial Truck Parts Group which provides parts for light and heavy commercial trucks. It has a retail segment with its key business being Autobarn. Bapcor has service businesses such as Midas and ABS. Finally, the company has a growing presence in Asia, with a network in Thailand.

The auto parts ASX share recently revealed that in the first quarter of FY21 it saw total revenue growth of 27%, despite government COVID-19 restrictions in Victoria and Auckland.

Burson Trade experienced revenue growth of 10%, with same store sales growth of 7.7% – there was 17% growth excluding Victoria. New Zealand revenue grew 6% and same store sales rose 4%. Retail revenue soared 47% with Autobarn same stores sales going up 36% and AB Company same store sales rose 50%. Finally, specialist wholesale revenue grew by 45%, though excluding acquisitions revenue rose by 18%.

Bapcor CEO Darryl Abotomey spoke of the company’s defensive qualities in the trading update: “The automotive market is a resilient industry and historically has performed strongly in difficult economic circumstances. Recent trading is another example of its resilience assisted by the increase in sales on second hand cars, reduction in use of public and shared transport modes as well as government stimulus.”

The ASX share expects to deliver a strong first half, though it couldn’t provide a forecast of earnings for the current year due to uncertainty.

Bapcor is currently rated as a buy by the Motley Fool Share Advisor service. According to Commsec, it’s valued at 18x FY23’s estimated earnings.

Temple & Webster Group Ltd (ASX: TPW)

This is an online furniture and homewares business.

In FY20 the ASX share generated revenue growth of 74% year on year to $176.3 million. Second half revenue rose by 96% and fourth quarter revenue went up 130%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 467% to $8.5 million. Cashflow was positive during the year and it ended with cash of $38.1 million with no debt. During FY20 active customers went up 77% year on year to 480,000.

Like Bapcor, growth has continued into the first quarter of FY21. Year to date revenue, between 1 July 2019 to 19 October went up by 138%.

The first quarter of FY21 saw EBITDA generation of $8.6 million, which was more than the full FY20 year EBITDA.

Temple & Webster said that October revenue growth was still more than 100% which management said was pleasing because it’s coming into the most important trading time of the year.

At the time of the trading update, the ASX share said its contribution margin continued to be ahead of its 15% target.

Temple & Webster was pleased to point out that customer satisfaction remains at record levels, with its net promoter score of around 70% and newer cohorts continuing to perform better than historical comparisons.

The ASX share said that it’s committed to a high-growth strategy to take advantage of the structural shift towards online, capitalising on both organic and inorganic (acquisition) opportunities.

Temple & Webster is currently rated as a buy by the Motley Fool Share Advisor service.

At the current Temple & Webster share price, it’s valued at 37x FY22’s estimated earnings.

More reading

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Santos Ltd (ASX: STO) share price will be one to watch on Wednesday following the release of a positive announcement after the market close.

What did Santos announce?

This afternoon Santos revealed that Federal Environment Minister Sussan Ley has signed off on the $3.6 billion Narrabri Gas Project.

As a result, it will now embark on a 12 to 18 month appraisal program ahead of a Final Investment Decision (FID) for the next phase of project development.

Pleasingly, Santos’ Managing Director and Chief Executive Officer, Kevin Gallagher, notes that the conditions on the approval were consistent with those already set by the New South Wales Independent Planning Commission.

Furthermore, they were generally in line with those for its GLNG operations, where the company is operating safely and efficiently, and protecting water resources and the environment.

Mr Gallagher commented: “We accept the conditions from the Commonwealth, which are very much in line with our other operations across the country and welcome the approval that all relevant matters of national environmental significance have been adequately addressed.”

“Santos is excited about the prospect of developing the Narrabri Gas Project, a 100 per cent domestic gas project that will deliver the lowest-cost source of gas for NSW customers,” he added.

Mr Gallagher believes the development of the project will be a boost to the economy as it recovers from the COVID-19 pandemic.

The chief executive said: “As the economy recovers from COVID-19, game-changing projects like Narrabri are critical to creating jobs, driving investment, turbo-charging regional development and delivering more competitive energy prices.”

What now?

The company has already begun workover activities on existing wells under its current exploration tenures and is working to get various agreements in place that are required prior to the next phase of development.

“Now all we want to do is to get on with creating jobs in New South Wales and Narrabri, and making a real difference to people’s lives in rural and regional communities,” Mr Gallagher concluded.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why the Oil Search (ASX:OSH) share price is the worst performer today
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Tuesday the MyDeal.com.au Limited (ASX: MYD) share price was a particularly positive performer.

The newly listed online retail marketplace provider’s shares finished the day over 7% higher at $1.29.

This means that the MyDeal share price is now up 29% from its initial public offering (IPO) listing price of $1.00.

What is MyDeal?

MyDeal is an online retail marketplace provider with a focus on furniture, homewares, appliances, technology, baby products, and hardware.

It recently raised $40 million from its IPO, which will be used to drive future growth. This includes growing its private label business, investing in its proprietary technology, and investing in advertising to grow its customer base and brand.

The online retailer has been a positive performer in FY 2021. It recently released a first quarter update which revealed quarterly gross sales growth of 317% to $56.67 million.

This was driven by the accelerating shift to online shopping and a 268% increase in active customers to 669,897 compared to the prior corresponding period.

Can the MyDeal share price go higher?

One broker that still sees a lot of value in MyDeal shares is RBC Capital Markets.

Earlier this month it initiated coverage on the company with a buy rating and $1.60 price target. This price target implies potential upside of 24% over the next 12 months.

RBC commented: “We think MYD is at an inflection point as annualised gross transaction value (GTV) exceeds $200m, SKUs pass 5m and customers approach 700k. Key operating metrics indicate the business is starting to benefit from a flywheel effect.”

“This increasing scale presents an opportunity for MYD to position itself as a leading online player focused on a category that is seeing accelerating online penetration. A successful private label strategy is key, as it improves unit economics, provides a point of differentiation and can help build a brand,” the broker concluded.

It also notes that its shares trade at a sizeable discount to Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW).

More reading

• 2 ASX small cap shares tipped for big things
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• MyDeal.com.au (ASX:MYD) share price up 7% on trading update
• These 3 ASX shares to IPO recently are struggling
• Are these small cap ASX shares the next Kogan (ASX:KGN) and Nearmap (ASX:NEA)?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Tesla Inc (NASDAQ: TSLA) have already soared nearly 500% so far in 2020 but will surge to new all-time highs in the coming year.

That’s according to Wedbush analyst Daniel Ives. On Monday, Ives raised his price target on Tesla’s stock from $500 to $560 but presented a bull case that envisions the stock more than doubling to $1,000. His new base target represents potential gains for investors of roughly 14% over the stock’s closing price on Friday of about $490. It’s the bull case, however, that is most intriguing.

Ives cited several recent achievements by Tesla, including its inclusion in the S&P 500 Index (SP: .INX) and the company’s “sustained path to profitability” as helping continue Tesla’s momentum. He views the bull-story growth through the lens of increasing demand for electric vehicles (EVs) worldwide.

“Overall we are seeing a major inflection of EV demand globally with our expectations that EV vehicles ramp from about 3% of total auto sales today to 10% by 2025,” Ives wrote in a note to clients.

Will Tesla’s stock price hit $1,000?

Tesla started out 2020 saying it expected to deliver 500,000 vehicles, though it was somewhat hamstrung by the pandemic. The company has delivered roughly 318,000 cars so far this year, so reaching its initial target seems unlikely.

With sales of EVs expected to triple over the next few years, and Tesla the clear market leader in the space, it isn’t unthinkable that Tesla will be able to reach that 1 million vehicle-delivery goal over the next several years — if not sooner.

That said, Tesla already has a significant amount of growth baked into its share price. The stock’s valuation clocks in at a lofty 19 when a reasonable price-to-sales ratio is typically between 1 and 2. While it’s certainly possible that Tesla’s stock price could hit $1,000, I don’t expect it to happen in the coming 12 months.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The TOWER Limited (ASX: TWR) share price lifted today after the company entered a settlement agreement with the Earthquake Commission (EQC). The deal regards an outstanding receivable resulting from Canterbury earthquakes. At the time of writing, the Tower share price is up 4.6% to 58.5 cents. In comparison, the All Ordinaries Index (ASX: XAO) is hovering above 1.2% to 6,855 points.

Let’s take a closer look at the New Zealand-based insurer and what’s driving the Tower share price higher today.

Settlement reached

Tower said it had settled with EQC for $42.1 million, with the funds including disbursement to reinsurers and costs.

The company advised that the write-off of the residual amount would impact its FY20 reported net profit by $9.5 million. The additional funds will further strengthen its capital position moving forward into FY21.

Pleasingly for Tower, the settlement amounted to 76% of the gross carrying value listed in its accounts. Tower will provide an update on dividend payments with its FY20 results to be released tomorrow.

What did management say?

Commenting on the agreement, Tower chief executive Sid Miller said:

The series of earthquakes suffered by the Canterbury region caused a number of complexities in allocating building and land damage and the cost of repair between different earthquake events. This settlement is a significant milestone for EQC in our Canterbury Earthquake recovery program.

Tower chair Michael Stiassny, added:

The Canterbury earthquakes remain a significant event in New Zealand’s history and will have a lasting impact on the community. For Tower, this legacy resulted in distractions that have been progressively removed over the years and it is important we provide the management team with clear air to move the business forward and accelerate.

The board determined that reaching this settlement agreement dealt with any remaining unpredictability and gave certainty to our shareholders, who will be pleased to see this risk removed from our business.

Tower share price summary

The Tower share price has had a challenging 2020, falling from its multi-year high of 74.5 cents in December 2019 to today’s price of 58.5 cents. This represents a decline of 21%.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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