Partnership Share Discussion Threads

[topvest] 23/3/2014 15:16

Yes, I do agree that annuities are not dead. Most people retiring WITH A DECENT PENSION POT will want certainty of returns for a slug of their pension and this is still really the only way to do it. Capital and income draw-down is attractive to some, but a bit of a worry to others. Those with small pension pots may take the cash and become hand-out dependent, but do the annuity providers make big money from small sums anyway? For sure the annuity market is under considerably more pressure than it was, but it will survive.

[sh0wme] 23/3/2014 13:58

Techo , could you summarise content pls

[techno20] 23/3/2014 13:52

Pleasing to see PA. coming out fighting. Full page ad in the S. Telegraph.

[knigel] 23/3/2014 13:46

No future? LOL First, there is a three month consultation period so don't rule out changes. Secondly some people will still take annuities - quite a few people do not even take their 25% tax free cash option NOW. Thirdly new hybrid products will be introduced - and the company have a full year to adapt. Fourth - free advice will now be provided and PA. might still have one of the best product/rates for those looking for the guaranteed option.
Yes the market will decrease. Yes the future is uncertain. No the business model is not bust - but badly damaged. The share price is below NAV excluding new business - there may be consolidation in the sector. A risky short term buy IMO

[it_trader] 23/3/2014 12:35

Safe to say that there will be some kind of internal restructure in the short term and some poor people losing their jobs, but the business will continue although in a much smaller capacity whilst they take the longer term strategy of changing business models.Does the 60% share drop more than cover for that? That's the question.I think it does, and anybody buying now are getting a bargain IMO.

[123ct] 23/3/2014 11:57

comments by showme, none to the risk of going bust,

any company can go under, many high profile cases, Ferranti, Marconi who blew £4bn in cash reserves, and these would have been regarded as safer bets than Partnership.

I have no holdings, I closed a spreadbet on Friday pm at breakeven thanks to a very tight stop loss, but cannot see the future for this company.

Equity release failed in the 90's, 00's and is just not a mainstream product even though I personally think it is a very good idea.

If the Government decide to change the rules for existing annuitants to allow them to at least change provider this could wipe out Partnership embedded value as they could lose every one of their existing policyholders although this would be extremely unlikely.

Also if they cannot spread their fixed costs over much lower business volumes that could rack up significant debt and that could lead to the collapse of any company.

All I am saying is that do not buy a share on the basis it cannot go bust as the market is full of stories of companies that should never have gone bust

[wylecoyote] 23/3/2014 11:33

Django, that is what I have been saying since it was announced... Now, joe bloggs on the street will only see the pound signs and draw the cash... they will overestimate how long they will live for and if they will require care... the government has released a time bomb and keep making it worse for joe bloggs. For example where I work, they have a pension plan that is the legal minimum required. I think it stinks, compared to who I worked for before. The government rules meant they could default to a legal minimun rather than market beating(for employees). Still, it means I have to keep looking elsewhere.

[sh0wme] 22/3/2014 18:34

Er, none. Income from existing annuities and care plans etc plus reduced annuity new business will reduce incomes and profits but it will still be profitable. Key now is how the business positions its new business offering going forward as to how much income and profits are lost. Oversold IMO, expect bounce in next week or two.

[sg1972] 22/3/2014 17:35

What are the chances of this going under?

[sh0wme] 22/3/2014 11:22

Twixy,

Management have a lot of shares tied up in this. I'm sure you are right, they are not a one trick pony and will divert into other areas quickly. They are still sat on a load of annuities which generate good income. I think we have gone as low as we can go.

[twixy] 22/3/2014 11:11

SHOWME - agreed; I also believe PA is oversold and bought in just before the close on Friday. I expect to see a much higher price in the coming months, once the dust has settled and they have had an opportunity to amend the strategy.

[sh0wme] 22/3/2014 10:41

A mixed bag of opinions and estimates but clearly a hold or buy. Oversold imo.

Other equities research analysts have also recently issued reports about the stock. Analysts at Barclays downgraded shares of Partnership Assurance Group PLC to an "underweight" rating in a research note on Thursday. They now have a GBX 125 ($2.08) price target on the stock, down previously from GBX 366 ($6.09). Separately, analysts at Nomura reiterated a "buy" rating on shares of Partnership Assurance Group PLC in a research note on Thursday. Finally, analysts at Deutsche Bank reiterated a "hold" rating on shares of Partnership Assurance Group PLC in a research note on Thursday. They now have a GBX 325 ($5.41) price target on the stock. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating to the company's stock. Partnership Assurance Group PLC presently has an average rating of "Hold" and an average target price of GBX 285.20 ($4.74)

[knigel] 22/3/2014 10:36

Everyone is entitled to their opinion - but I agree having a share price target is fine but you can look clever or daft in hindsight. The broker targets are still higher than the current share price but the company should not wait too long to signal their plans on how to adapt to these proposals.

[actybod] 21/3/2014 22:31

Posts 146-148 ?

[knigel] 21/3/2014 21:16

Well before the budget some had no choice - now they do. The NAV is 150p and the broker target is 152p - so perhaps the nonsense is not from any one on this board...

[actybod] 21/3/2014 21:10

Lots of nonsense on this board today with claims of 1.50. Are you guys talking about Ned Cazalet? Why would I choose an income where I might not get as much as the capital invested? Worse for impaired lives.

[hawkhybrid] 21/3/2014 16:26

the bottom line is people buy into a share with the
idea that it will rally and make them money.

paper facts are great but it's your profit that
important.

HH

[sos100] 21/3/2014 15:40

so the only reason why jrg is 'better buy' is because it rallied better?

[sh0wme] 21/3/2014 15:38

hxxp://moneyweek.com/budget-annuity-company-bargain-shares/

[hawkhybrid] 21/3/2014 15:31

I think jrg is the better buy of the 2. it
has gone down less and yet rallied better this morning.

better value is great if it actually turns into a
bigger rise after you've bought.

HH

[knigel] 21/3/2014 14:12

Also PA. has fallen far more than JRG or any other share in the sector. Perhaps weekend coverage on the budget might attract buyers next week..

[sh0wme] 21/3/2014 14:10

Great article and highlights how much this particular provider has been oversold. I've added more.