Un­fin­ished pack­age

Finweek English Edition - - COMPANIES & MARKETS -

A LOOK AT THE share price his­tory graph for Zurich In­surance Com­pany will hardly in­spire any real con­fi­dence. Be­tween Oc­to­ber 2009 and Novem­ber 2010 the share was un­changed, be­fore start­ing to tick up from R176 to trade at around R210. The lack of liq­uid­ity in the share is re­flected in the “stair­case” pat­tern the graph fol­lows. With less than 10% of the share ef­fec­tively “in play” we could be ex­cused for writ­ing the share off as a po­ten­tial in­vest­ment, es­pe­cially with the counter trad­ing on a 16 times earn­ings mul­ti­ple and only 351 shares chang­ing hands in a week.

How­ever, a re­cent trad­ing up­date stat­ing earn­ings per share and head­line earn­ings per share are ex­pected to be be­tween 170% and 190% higher than the pre­vi­ous pe­riod bears some con­sid­er­a­tion.

Finweek isn’t to­tally sur­prised by the sharp turn­around in Zurich’s op­er­at­ing

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