Market's view on R&Q Insurance
Published on April 2024
- Some investors are shifting their investments to STG and INHC, viewing them as potential high-return stocks to recover from losses.
- Concerns exist that R&Q Insurance Holdings is in severe financial trouble as it sells a 49% stake in its Corporate Liabilities Joint Venture and its fully-owned subsidiary in efforts to reduce its substantial debt, but the proceeds might still be insufficient.
- There is a general sentiment that the company’s equity holders are likely to see no recovery in their investments.
- Opinions are divided on the effectiveness of new non-executive directors specialising in restructuring, with some speculating about the company potentially converting into an unlisted SPV.
- Speculation about the company’s potential for a significant stock price increase persists, with some expecting a quick surge if certain positive announcements are made.
- Discussion about whether the company can halt its significant financial losses.
- Frustration over the handling of financial agreements in the sale of R&Q’s interests, with some suggesting that the deal terms are less favourable than announced.
- Observations that significant buying activity at low prices might indicate a forthcoming positive shift in the company’s stock performance.
- Some stock watchers remain sceptical about the company’s prospects, noting a lack of credible investment despite the low stock prices.