Direct Line Insurance Share Discussion Threads

[chinese investor] 12/10/2012 00:00

Easy Money.
Everybody I know bought some.

[dasv] 11/10/2012 20:55

FYI - conditional trading of direct line shares.

[cromwellian] 11/10/2012 20:45

HL phone dealing charges are 1%, £20 minimum, £50 maximum, may put some off perhaps.

[dr biotech] 11/10/2012 20:12

Just for those that didn't take in the IPO I had this email (I have edited a little) from HL who so far have been quite efficient and easy to use. Seems that I could sell if I wanted to, but would be liable if for some reason I didn't get my allocation. I'm happy to wait for a few days.
---

Each applicant has been allocated the first £999.25 (571 shares) of their application in full and any demand above that at a rate of 65%, rounded down to a whole number of shares and subject to a maximum allocation of £99,998.50 (57,142 shares).

Your shares are now showing on your account and any surplus cash from your application has been returned....

...the shares are currently trading on a conditional basis...and are expected to start trading unconditionally, and become fully listed on the London Stock Exchange, at 8am on Tuesday 16 October.

Please note conditional dealing is at your own risk and is only available over the telephone ..the issue of the shares is not in Hargreaves Lansdown's control etc.

[tenapen] 11/10/2012 19:31

Hi John,
I did say how much but took the basic form to be an indication of interest and not a obligation to buy. Ha Ho at least they are UP for now. It may be an Omen !.

Good Luck.

[jonwig] 11/10/2012 19:12

tenapen - I'm sorry to hear that ... who are 'Jarvis'?

But if you hold DLG presumably you named an amount of money at some point? In the case of both my brokers I didn't have to commit an amount of money until I subscribed (at 11:30 on Tuesday) and if I hadn't cleared funds in my account my bid would simply have been refused. So not a case of having to stump up.

Is it worth checking with them? - they seem to be coming a bit strong!

[tenapen] 11/10/2012 18:58

It looks like if you registrar an interest to buy an IPO with Jarvis it also meens that you have commited to buy :(. So now I hold DLG but i am also £1,600 in the red and expecting a fine with an interest charge on top. Groan.

[dr biotech] 11/10/2012 18:27

I've been allcated just under 3000 - currently 400 in the black. Better than a lot of my investments but not lifechanging.

[zcaprd7] 11/10/2012 17:57

Management team are incentivised to take this much higher...

[techmark] 11/10/2012 16:26

Anybody with half a brain would not have compared this to Ocado.

[dr biotech] 11/10/2012 16:11

Well I doubt GS are buying the stock today - they would only do that if it dropped below the offer price. On the flimsy one day evidence they are more likely to be selling - but I'd wait now to see how many PIs cash in next tuesday. Might include me. FWIW I always try to say when I trade, no credibility in mentioning it retrospectively.

[spob] 11/10/2012 15:52

you guys are totally missing the point

the point is Goldman can take this where they want initially

after that we have forced sellers and so the fundamentals count for nothing in the first two years


if you were a potential buyer would you not wait until the last possible minute when rbs becomes desparate

anyone with half a brain would

[techmark] 11/10/2012 15:46

It's like comparing apples and pears! I agree the Ocado comparison is silly.

[dr biotech] 11/10/2012 15:45

Comparison with Ocado is stupid - DLG is a mature profitable business that is expected to pay a decent dividend and was launched at a discount to its peers.

Ocado is a loss making but expanding business that was over reliant on one supplier and sold at a highly speculative level.

Could compare it to admiral - that quadrupled in the years after launch. Doubt this will, but its a more valid comparison.

Huge volume today, given there are only 325m shares in circulation.

[techmark] 11/10/2012 15:38

It's been floated at a reasonable price and should pay a decent dividend too, 6-7% has been mooted. So there should be demand for it from PI's and income funds. The business is okay, nothing exciting, but it doesn't need to be if it's going to be an income play. If they can pay a solid dividend each year then I'm sure the pension funds will lap it up.

[spob] 11/10/2012 15:29

manipulation is common to all

[pip_uk] 11/10/2012 15:27

Did`nt realise they were in the super market business as well.

[spob] 11/10/2012 15:23

Ocado



up to 290p then down to 50p

[spob] 11/10/2012 15:19

Ocado was manipulated up after it's float

and then reality started to set in

[spob] 11/10/2012 15:18

Can't just value this on fundies

there's an awful lot of shenanigans to get out the way first, over the next two years

[zcaprd7] 11/10/2012 15:01

Well, I'd be impressed at over 190 on the first day, being the upper end of the IPO price range...

[jonwig] 11/10/2012 14:57

jamielein ... you're right that comparisons need to be made on valuation.

But DLG are recovering from a 100-plus combined ratio and could well beat it on the next set of results.
And there's a potential change of business model coming up soon, where they intend offering legal services in-house. We'll find out this year whether regulators permit it.

I must admit to being a satisfied customer of Churchill (£230pa comprehensive) and Green Flag (£35pa basic) and, I suppose, to being an old fogey!

[bena1] 11/10/2012 14:54

· As stabilising manager on behalf of the syndicate, Goldman Sachs International has been granted an over-allotment option, exercisable no later than thirty days from today, by RBS Group over up to 67.5million Ordinary Shares, representing 15 per cent of the Offer.



Beware this part...GS will support it, get their over allotment, slot the lot for a tidy profit and F-off.

Good luck to those holding, but I'll be looking to short in 30 days, or when GS take the option.