Aviva Share Discussion Threads

[yf23_1] 01/9/2019 19:08

SR will be talking to himself soon.
Won't that be fun.

[sentimentrules] 01/9/2019 14:58

Midas Share Tip August 2018:

"Midas verdict: Centrica has been a sorry investment story in recent years, but now is not the time to sell, not least because the shares are now yielding more than 8 per cent."

So, capital down circa 55% on just that article day alone.

As for yield that they say worth sitting on? Utility stocks.. I don't need to say more

Just balance...

[cw2000] 01/9/2019 14:53

Thanks Spud
I can see posts now! Not filtered twits!

[sentimentrules] 01/9/2019 14:48

They didnt put the disclaimer at the bottom? 're past prices are not indicative of future prices. Investments can go down as well as up?

[cpap man] 01/9/2019 14:20

MIDAS SHARE TIPS: The Dogs of the Footsie 2019 - our tips yield an average of 10%, or TEN TIMES better than savings
Every year Midas reviews the top 10 highest-yielding FTSE 100 shares
The average yield has risen to 10%, while housebuilders Persimmon and Taylor Wimpey deliver yields of more than 12%
The three new entries to the top 10 are Aviva, Legal & General and BT
Normally exceptionally high yields suggest that change is afoot
By JOANNE HART FOR THE MAIL ON SUNDAY

PUBLISHED: 22:03, 31 August 2019 | UPDATED: 09:17, 1 September 2019

[sentimentrules] 01/9/2019 10:25

Index futures have been flat most of the weekend. Down but not much. Be interesting to see around 11pm

[sentimentrules] 01/9/2019 10:24

Absolutely. Massive news for the majority of stocks. Relevance is often in the strangest of places.. .that's Twitter these days

[dround87] 01/9/2019 10:20

A little something called macro-economics. We avoided a damaging week on the stock market because trump lied about China coming back to the table. What doesn't that have to do with Aviva which is heavily exposed to the market?

[sentimentrules] 01/9/2019 10:07

Very often what seems relevant, isnt

[noomxx] 01/9/2019 10:05

What has trumps porkies or not porkies got to do directly with AViva.
People need to control the irrelevant noise in theirs minds.

[dround87] 01/9/2019 07:14

So Trump was telling porkies. Hardly surprising. Had that kind of air about it last Sunday. He's like a child. You just know! Clinton could have pulled that kind of deception off with ease. Rocky road ahead.

[eurofox] 31/8/2019 21:57

sign up to exit

[blueliner] 31/8/2019 19:41

Found the new board, well done!

[sentimentrules] 31/8/2019 18:01

Tough one for them all right... a big price to pay for that course, yet potential break up if don't.

[dround87] 31/8/2019 18:00

Maybe but my feeling is the EU will cut off it's own arm to chase a policy of punishment. Can't have the UK looking successful. Doesn't bode well for the future of the union. Only takes one of them to make trouble. That's always been the major flaw IMHO. Paralysis over outliers.

[paulisi] 31/8/2019 09:30

Undervalued and with their Asian division to be sold, there should be plenty of up turn for the share price.Will add soon.

[sentimentrules] 31/8/2019 07:02

Best approach

[tygarreg] 31/8/2019 00:05

Leave with no deal to then get the best deal.

[dround87] 30/8/2019 23:12

Aviva has assets that astonish me. It's a great company to buy cheap.

[ianood] 30/8/2019 19:21

Good article spud. Nothing wrong with buying out of favour companies that are fundamentally sound imv.

[dr biotech] 30/8/2019 17:38

Would be nice if its true. Still going to sit on my hands until mid Oct through.

[spud] 30/8/2019 15:53

Would Warren Buffett buy the Aviva share price?

Warren Buffett probably wouldn’t be where he is today if he hadn’t invested in insurance. That’s not just my view. In 2004, Mr Buffett wrote that his firm, Berkshire Hathaway, “would be lucky to be worth half of what it is today” without 1967’s acquisition of US insurer National Indemnity for $8.6m.

Mr Buffett has also acquired several larger insurance businesses over the years, including US firm Geico, a major motor insurer.

Geico is perhaps the closest of Buffett’s businesses to the UK stock I want to consider today, FTSE 100 insurer Aviva (LSE: AV). The two firms aren’t a direct match — Aviva has a broader spread of activities and geographic coverage. But the Aviva business would certainly be familiar to Mr Buffett.

The market hates Aviva

Mr Buffett likes insurance companies because they provide him with a large float of customer cash that can be invested elsewhere, until it’s needed for claims payouts. With good underwriting, some of this cash will be surplus each year and available for distribution to the company’s owners.

Aviva offers shareholders some of the same benefits. In 2018, its operating businesses returned £3,137m of cash to the parent company. In 2017, the figure was £2,398m. This cash has been used for dividends, debt reduction and share buybacks.

For example, last year the firm returned about £1.2bn to shareholders through dividends alone. This represents a trailing yield of about 8.7% on the current share price. Given that this payout looked affordable, you might expect such a generous income to attract new investors.

That’s not happened. Although the company is expected to make a similar dividend payment this year, the Aviva share price has fallen by more than 25% over the last year. Investors don’t like Aviva.

Is this a buying opportunity?

Aviva shares currently offer a forecast dividend yield of 8.8% for the current year. But yields this high are often a warning of possible problems.

Before rushing out to load up with Aviva stock, we should consider what might be wrong at this firm, which was created when Norwich Union merged with CGU in May 2000.

As a shareholder, I remain bullish. But I can see some potential problems.

Aviva is struggling for growth, and has been for some time. In 2018, operating profit rose by just 2%. In 2017, the figure was also 2%.

This group doesn’t have the clear identity and growth focus of some rivals. For example, Prudential has a large, fast-growing business in Asia. Aviva operates in Asia, but it’s much smaller.

Similarly, Legal and General has delivered years of sustained growth thanks to its bulk annuity and asset management businesses. Aviva does similar things, but doesn’t have the same market share.

Aviva is left as a diversified general insurer, operating in markets that are fairly mature and slow growing.

Things may be about to change

New boss Maurice Tulloch is determined to fix these problems. He’s announced a review of Aviva’s Asian business which could lead to a sale. And he’s simplifying the UK firm’s structure to try and stimulate growth.

It’s too soon to say whether Mr Tulloch will succeed. But the shares currently trade below their net asset value of 432p and the group’s cash generation remains strong. I think there’s value here. If Aviva was a US firm, I reckon Mr Buffett might be interested.

spud

[sentimentrules] 30/8/2019 14:43

Aviva not in admin yet? Soom

[essentialinvestor] 30/8/2019 14:43

Better couple of days for PRU. However would expect it to remain volatile
with whipsaw moves in either direction.

[essentialinvestor] 30/8/2019 14:38

Warren, if you want to go big picture, is the United States much different?.
An 18% increase in their federal budget deficit in 2018 to produce about 2% GDP growth?. US national debt is increasing at an extraordinary rate under Trump.