Hargreaves Lansdown Share Discussion Threads

[ochs] 29/10/2023 17:44

Hello @Stoopid, I'm currently long but I think the Bear points would be as follows,

Risk of FCA fine over Woodford (of unknown £ amount) still hanging over the shares. Also potential further reputational risk to come if anything else creeps out from the woodwork.
Higher mortgage and other costs mean new business is slowing as clients generally have less money to invest in an ISA or SIPP each year.
HL fees are still seen as high compared to competitors (especially share dealing fees) so there's some risk of outflows - although so far that has not been an issue over the last few years. There's also risk to margin if fees do come down.
Competition from the US could increase and undercut big UK players like HL.

[stoopid] 27/10/2023 08:24

There seems to be a big short position against HL? Something like 5.5% Any particular reason why?

[lomax99] 26/10/2023 07:28

Citywire today:Buy 'deep value' Hargreaves Lansdown, says Shore CapitalShore Capital sees 'deep value' in Hargreaves Lansdown (HL) shares as they slide to 2012 levels.Analyst Vivek Raja retained his 'buy' recommendation on the Citywire Elite Companies A-rated stock, which was trading at 691p on Wednesday.He said it has been a 'torrid time' for shareholders of the UK's biggest investment platform, and 'the last time the share price was at this level it was 2012 when earnings per share was less than half its current level'.'There is now nothing implied in the valuation for growth, following a sharp deceleration in flows since the interest rate tightening cycle began, while the market has latterly become more concerned about the sustainability of interest income generation,' said Raja.'Acknowledging the likelihood over the next couple of years of limited progression in earnings per share, exacerbated by platform investment, we continue to see deep value in Hargreaves Lansdown shares.'

[ochs] 25/10/2023 11:20

Although xd not until 16/11 - so plenty of time to buy - if you dare!

[action] 25/10/2023 07:42

Exd nearing 650p.

[action] 25/10/2023 07:42

All fund managers in general are down.

[ochs] 23/10/2023 16:46

Who told you the Gov is applying pressure? Got any evidence of that?

[sunshine today] 23/10/2023 12:18

The revenue on cash amounted to a whopping £268.7m of its total turnover of £735.1m for the year.19 Sept 2023.

[sunshine today] 23/10/2023 12:16

Ochs

Any business that is making a huge slice of its profits in this manner is doomed.

It’s totally unethical

It’s sly and just like the banks the government is applying pressure

Rightly so

[porsche1945] 23/10/2023 11:37

If those deadbeats at peel hunt have these at buy I would be unloading fast, these are the guys that had a target on Aston Martin of over 20 quid, before the shares set off on an 18 month trip to .48p😂㊃3;😂🤡

[ochs] 22/10/2023 15:17

Mr sunshine Today, I think you are mistaken/confused about the FCA Consumer Duty - it's all about treating clients fairly when it comes to clear communication, meeting their needs and charges (hence why they've come after SJP and their crazy initial fees) - HL charge 0% to hold cash and always have done... the interest margin is a separate thing (which varies from month to month) and is not covered by the Consumer Duty.

[action] 21/10/2023 14:34

Ig do not offer any int at all.

[sunshine today] 21/10/2023 11:56

HL is creaming off most of the margin on cash accounts is clearly NOT offering value for money.

IS IT ?

[sunshine today] 21/10/2023 11:54

The FCA’s consumer duty rules, which came into force over the summer, mean financial professionals have to prove to the regulator that they are providing transparency over their fees and provide value for money to their customers.

[ochs] 20/10/2023 15:09

Thanks @lomax99, a good write up from Peel Hunt, and a 'Buy' rating with a price target of 1,220p.

"Hargreaves Lansdown’s share price continues to reflect challenging market conditions, rather than the significantly higher level of profitability being delivered through interest income – which we believe is higher quality than the share price suggests,’ he said.

The business does have strong long-term prospects, which we do not believe are being fully reflected in the share price."

[yf23_1] 20/10/2023 10:51

HL charging is ok, just stay away from funds, although they do discount the initial charge on some funds to zero.
You're lucky to get interest on cash in a stock account - Barclays pay nowt.

[tim 3] 20/10/2023 08:57

I think longer term platforms like HL will do ok all be it at lower margins.It's the old providers like SJP that will really suffer with their outdated charging methods and expensive business model.

[sunshine today] 20/10/2023 05:44

In fact it’s got so bad the regulators have now stepped in.

[sunshine today] 20/10/2023 05:43

Ochs19 Oct '23 - 17:11 - 2435 of 2437

No @sunshine Today, as Interactive Investor explained in that article an investment platform account is not a high interest account (and never advertises itself as such) and a client is only expected to want to park money in cash in the short term. The interest rates offered by platforms do actually compare favourably with the interest paid by current accounts and some instant access accounts from banks.


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Umm, since when were you personally happy to pay a 50% spread on any other item you invest in.???

Investors expect to be treated with respect not ripped off.

More so when the whole ethos of HL is to increase the wealth of its customers.


I pointed out 5 years ago that the downfall of HL will be its disrespectful attitude towards its clients.

With the shares down massively since ( and falling ) I’ve been spot on.

[sunshine today] 20/10/2023 05:43

Ochs19 Oct '23 - 17:11 - 2435 of 2437

No @sunshine Today, as Interactive Investor explained in that article an investment platform account is not a high interest account (and never advertises itself as such) and a client is only expected to want to park money in cash in the short term. The interest rates offered by platforms do actually compare favourably with the interest paid by current accounts and some instant access accounts from banks.


////////////////

Umm, since when were you personally happy to pay a 50% spread on any other item you invest in.???

Investors expect to be treated with respect not ripped off.

More so when the whole ethos of HL is to increase the wealth of its customers.


I pointed out 5 years ago that the downfall of HL will be its disrespectful attitude to its clients.

With the shares down massively since ( and falling ) I’ve been spot on.

[lomax99] 20/10/2023 05:33

Peel Hunt: Long-term potential not priced inHttps://citywire.com/investment-trust-insider/news/expert-view-rightmove-hargreaves-lansdown-genus-lbg-media-pensionbee/a2428524?re=113825&refea=1746813

[riverman77] 19/10/2023 16:17

Yes when interest rates then they will lose that revenue stream, but that will surely be more than offset by the likely rise in asset values and new inflows as sentiment improves.

[ochs] 19/10/2023 16:11

No @sunshine Today, as Interactive Investor explained in that article an investment platform account is not a high interest account (and never advertises itself as such) and a client is only expected to want to park money in cash in the short term. The interest rates offered by platforms do actually compare favourably with the interest paid by current accounts and some instant access accounts from banks.