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Allied World Assurance Company Holdings, AG Message Board

  • johngmadison johngmadison Nov 22, 2010 8:28 AM Flag

    Share buybacks

    Since the start of the buyback program the total shares and warrants that have been repurchased are more than 13 Million that are off the market right now.

    The shares (and warrants) that have been repurchased from Goldman and associated companies are not part of the buyback program, and they have not been canceled, but held as treasury shares, but AWH does not have to pay dividends on them.

    If AWH would cancel the treasury shares, EPS would rise tomorrow by about 15%-20%

    Even if AWH would make 20% less in Q4 than Q3, net income for the year is about 750 Mil then, that distributed over only 40 Mil shares would mean an EPS of about $19 for the year.

    Looking at those numbers, I think AWH is a great buy, and at this pace I would be surprised if someone at AWH would not think about taking it private in the next 2-3 years.

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