Hargreaves Lansdown Share Discussion Threads

[natasonline] 24/5/2024 01:18

Nearly everyone that has bought this stock since 2013 has paid significantly more than the laughable offer price. I've owed a few stocks in the past that have been bought out and they've all achieved well above current market price to make it palatable for current holders to accept. It's scary for me that Hargreaves himself finds this offer 'interesting'.

[growthpotential] 24/5/2024 00:17

No, I would still shop at Asda but the difference is that a broker is more financially attached to you. Although client money is ring-fenced it feels better if the broker has no debt. If it's taken private, in theory I could still use them if they had no debt, but I would have no additional incentive to ensure I use HL myself either as I would no longer own a stake in it. Emotionally though, like another poster, I am looking to hold this for the long run and have paid a much higher price, around mid 1400s

[growthpotential] 24/5/2024 00:09

Reports suggested Hargreaves was open to taking the firm private but he told the Mail: that's a lie. I have never said that.

[ochs] 23/5/2024 22:33

@GrowthPotential - Do you no longer shop at Asda because it is saddled with debt since being bought out? Surely it makes no difference to you as a client trading funds and shares whether HL is privately owned or listed or whether it has debt?

[m_kerr] 23/5/2024 20:08

THe way I sum this up is its a company that is in a bit of a difficult spot profit growth wise, hence the massive rearing downwards over the years.

IT is however a company that has advantages that are extremely difficult to replicate, in an attractive growing industry.

If its an easy fix for PE, its an easy fix for competent management. If I was the board I wouldn't consider discussions unless a material premium was given above where it's at now. The bidders have timed their bid to capitalise on a share price lull.

[eigthwonder] 23/5/2024 19:53

If Hargreaves is offered a sizeable stake in a buyout vehicle we might see a bid and we could be disappointed at the price as he wouldn’t be motivated to max out

[danb45] 23/5/2024 19:12

maybe it's worth a punt on other providers because there's a hell of a lot of funds that might be pulled out if the wrong buyer wins... but you'd think the FCA will have their eyes on any potential deals - whether they have any influence I'd have to look into ?

[danb45] 23/5/2024 19:08

I've got a hunch no bids will be high enough for them to sell but happy for it to rise in the meantime !!

[growthpotential] 23/5/2024 18:46

It would be delisted and most liked the new owners would saddle this with debt hence why I'd move my accounts. But hopefully this stays listed and as it is

[ochs] 23/5/2024 18:29

Why @GrowthPotential and @DanB45? Prior to 2007 it was a highly profitable and successful private company - so with the right management going forward being private wouldn't necessarily be bad for existing clients - although it of course depends who the eventual owner is.

[m_kerr] 23/5/2024 17:29

NOt surprised PE have bid, as I have stated on here before a PE offer was in the pipeline as it has most of the attributes PE look for, including a cheap share price.

It seems the board are aware of the strengths of the business, and PE will have to stump up more to get the deal over the line.

In this case, the bloated cost structure makes it an even more attractive target, since it's easy low hanging fruit to strip out those costs.

There are very few quality companies in the ftse. I suspect it may be a morrisons situation where the winning bid is significantly above the initial offer.

[danb45] 23/5/2024 17:16

I was presuming if a bid goes through HL would still be listed ? Obvs not if Peter takes it private A proper ball ache moving everything

[growthpotential] 23/5/2024 17:01

I would certainly move my accounts if it went private (SIPP, LISA, Cash ISA, Junior ISA)

[danb45] 23/5/2024 16:59

as a holder obviously happy about the rise today.But as a user of HL are there downsides if a bid goes through ? I'd presume not but have seen some comments where investors are saying they'd pull their investments out, any one with ideas why they'd do that ?

[giltedge1] 23/5/2024 14:12

Agree £10 floor but 5% shorts to buy, usually afternoons so lots of upside £12 maybe.

[adamb1978] 23/5/2024 12:49

Sometimes you see an amount of bid spec remaining in a price after an offer fails. I dont think its a foregone conclusion that the price goes back to 900p when the approach fails, but agree that it wont stay at 1050-1100. I'm completely realxed about that impending pull back though

[stoopid] 23/5/2024 12:43

We all think the bid was a cheeky one and so do the board. But, if the deal collapses HL will tank. I doubt the "consortium" will up the bid to what the board would find acceptable, which I reckon would be about 1500

[eigthwonder] 23/5/2024 09:47

cheeky focker bid. and if they hoped by publicising it they would somehow shame the board into engaging at that price, the initial reaction would suggest that it is going to backfire. quick profits are all well and good but like lea i had this one in for the long haul

[leadixon] 23/5/2024 09:31

As my biggest position I’m actually annoyed as I wanted this as a long term holding given I really like the current direction of travel so not surprised at a bid, but I’d want at least 16/17 for them to take it off market now, but no way they’ll pay it

[dexdringle] 23/5/2024 09:18

These PE monkeys should buy SJP instead. Half the price and twice as profitable.

[chester9] 23/5/2024 07:46

The directors buying in late Feb is interesting with hindsight.

[adamb1978] 23/5/2024 07:39

Agreed Lomax. And looking back 2-3 years on the chart, people will mentally have this pegged as a share price in that area with the recent lower levels being an unusual blip. Coupled with the long-term founder owners, an offer needs to be way way higher than the derisory one suggested