Direct Line Insurance Share Discussion Threads

[joshuam] 17/11/2019 19:19

Just renewed both our car insurance policies with Churchill virtually same price as last year. Checked one on comparison website £8 dearer didn’t check other just renewed both.

[sufc555] 14/11/2019 21:13

agreed plus new brand - Darwin - will be cheap option on pcs

[fllegend] 14/11/2019 19:49

Can I just point out again as a few people are getting over excited about the not on price comparison websites angle - DLG owns Churchill and Privilege, both of which are on price comparison websites, and tend to regularly be in the cheapest top page of quotes. There is a strategy to differentiate the Direct Line brand from the other two, and Direct Line gets the biggest marketing budget and regular updates to free add-ons.

[scrwal] 14/11/2019 12:24

I still reckon something in the results needs a level headed evaluation over a few hours - probably the gut reaction is negative but letting the details sink in you go ok I can live with that. This avoids the market going oh sh*t and hitting the price only for it to bounce back to a fairly neutral position at the close.

[yump] 14/11/2019 11:54

So assuming there isn't something nasty awaiting, is the share price going to do a capitulation bottom, or is it more likely to be a rounded one ? I think the latter is more likely, purely because there isn't an obvious support buy point based on the long term chart. So more likely people will randomly take a view on a reasonable value and then perhaps spread buying. Just a theory, but charts do often seem to trigger buying and selling based on quite arbitrary prices.

[sufc555] 14/11/2019 11:30

CMD is to launch their Darwin brand - Q3 has been delayed to coincide with the launch - I will let you know what happens on the day

[meek] 14/11/2019 11:29

There will be top management presenting at the Capital Markets Day on 21st, including CEO & CFO. I can't imagine them wanting to do a presentation the morning after releasing bad results, can you? If the results were bad, I would have thought they would want the dust to settle a bit before putting their heads back above the parapet. Just my thoughts.

[essentialinvestor] 14/11/2019 06:20

Would just say that a GS Sell I would ignore fwiw. My gut call is a day or two before the announcement, might be an interesting area as a potential buy.

[smithp1] 14/11/2019 06:06

Thanks Tom let’s hope that is all it is.

[tomleafs] 13/11/2019 21:59

Here's the explanation - I'll leave it up for discussion whether it's a good one or not. "Thank you for your email. As we will be hosting our Capital Markets Day on 21st November we have taken the decision to combine our Q3 trading update and the Capital Markets Day announcements to simplify reporting and make everything a bit more streamlined."

[yump] 13/11/2019 21:50

Agree delayed results are a worry and after hours just doubles the worry. I hope there's a good explanation if it turns out there is nothing to worry about.

[wllmherk] 13/11/2019 19:50

I can't help but feel uneasy at recent share price action and Skinny's chart doesn't help. I have to agree with EI in so far as I can't recall results being delayed for positive reasons. I'm in these for income and it's my largest holding by a distance. I can live with the fall in share price if they can sustain the dividend, but, I know from painful experience that very high yields are normally a red flag. All I can do now is hold and wait for them to recover. wllm

[smithp1] 13/11/2019 16:55

Don’t trust Goldman they get it wrong so often. Sell “pets at home” Target price £1 earlier this year look at it now over £2. Oil $200pb during the boom a few years ago now look , it never got nowhere near $200pb. Having said that cos I own dlg they will be right. Or they just driving the price down during this void til results.

[risa5] 13/11/2019 16:39

Its not a good sign, GS cut their target today ahead of update next week.

[essentialinvestor] 13/11/2019 16:04

Well in 30 years not sure I can recall one example of a delayed and planned after hrs statement bringing ...good news. Perhaps this will be the exception, or by the time we get to the date it may possibly be largely in the price. All speculation at this point.

[yump] 13/11/2019 15:55

Essential Investor They've probably got access to prices from other insurers and so can put up their own data to show how they compare. The issue will be that is not independent. However, there have been a lot of issues recently questioning the independence of price comparison sites and their rankings. I certainly know that many comparison sites outside insurance were/are not strictly independent, because the retailers offering the same product, but a better commission, get put higher up the comparison chart. Which on a mobile puts them on page 1, instead of page 2. Did it myself. Never claimed to be independent though. Just the same as any sort of incentivised agent selling - you promote the product that pays the best. Also, if some retailers had the same product and offered a stupidly low commission, then they got left off. Public doesn't actually need or want all the suppliers, in order to make a purchase.

[meek] 13/11/2019 15:46

Calm down, the whole sector is getting a beating today, the only reason DLG is worse is because their results are still unknown.

[risa5] 13/11/2019 14:00

It would be interesting to see if Goldman had any comments about their cut recommendation today.

[essentialinvestor] 13/11/2019 13:44

Yup, I've been tempted but resisted, whether that's the right decision or not.

[skinny] 13/11/2019 13:40

I've been dithering over these for a while - I think I'll leave my hands in my pockets until the 20th.

[risa5] 13/11/2019 13:27

GOLDMAN CUTS DIRECT LINE INSURANCE PRICE TARGET TO 290 (320) PENCE - 'NEUTRAL'

[essentialinvestor] 13/11/2019 13:05

Thought they had developed a comparison site product, all be it would represent perhaps a small % of their brands.

[yump] 13/11/2019 12:55

The other issue with DLG is possibly chart-based and nothing to do with the business. On a long term chart, there is no obvious support level. That in itself imo makes investing very difficult, both for people and algorithms.