Just Share Discussion Threads

[scrapheap] 22/5/2019 15:16

presuming they are able to announce rather better trading next time, and a new broom then I suggest a name change (again) might make sense - Just - was always a poor choice. The brand has suffered a lot of reputational damage imho with these series of blows to credibility.

[topvest] 17/5/2019 15:27

i.e. Q2 sales already better than Q1 just on bulk annuity deals which is the right kind of business for Just.

[topvest] 17/5/2019 15:26

RNS for Q1 should have possibly included this:
"However, Just Group said it had already completed bulk annuity deals totalling more than 300 million pounds in the second quarter."

[scrapheap] 17/5/2019 13:48

This company is the very definition of a sitting duck... the problem is so far, the obvious hunters seem to have turned their nose up at it!

[tsmith2] 17/5/2019 08:25

may test 58p again today, if that's breached would think decent leg down

[edwardt] 16/5/2019 16:14

teh 9% cost of capital for the bonds has quashed new business as their ebit margins were about that. it really is to me a for sale sign for the company whereby a large buyer can come in and refi the debt and make it go back to new biz mode. we as minority shareholders have been bulldozed in the interim. lesson learned.

[edwardt] 16/5/2019 16:12

topvest - what you are missing is that by nature of what they do , you or they have no way of knowing if that bit of business is profitable for up to 20 years hence. it is inherent risk in their business. if they want to write more business - offer best rates in market and if you don't offer silly rates and get no business. they have gone into silly rate mode.

interestingly the bonds are up today - inferring the protection of the balance sheet from here is at least liked by the bond holders. for me that is a sign that the slow grind to bridging the gap from share price to book value stands a chance given the gap is not widening from here.

[topvest] 16/5/2019 15:38

NAV was 177p before the fundraise. What I am saying is that they should stop writing business that involves large immediate outflows (i.e. lifetime mortgages). This business has been run with a salesman type culture. It needs to be run on a return on capital employed culture. The large reduction in sales is actually reasonably good news. I'd like them to get the business self sustainable before 2022.

[lestat102] 16/5/2019 15:15

Hi topvest,

Thanks for the response. Just to clarify, do you mean they could effectively liquidate the business at £1+ if they were to cease trading? If so it has to be a huge bid target?

cheers

[nav_mike] 16/5/2019 15:07

Vast difference between mcap and NAV however that has been the case for a while now

How realistic is that NAV I wonder?

[topvest] 16/5/2019 13:01

Stopping all new sales and running off the existing book. I don’t think it will come to that, but they need to generate cash, rather than writing business that needs cash.

[topvest] 16/5/2019 13:00

Stopping all new sales and running off the existing book. I don’t think it will come to that, but they need to generate cash.

[lestat102] 16/5/2019 11:49

Hi topvest,

What is run-off? Total asset sale?

Cheers

[tsmith2] 16/5/2019 09:12

Low is 58p?

[topvest] 16/5/2019 08:24

Quite a drop in business is not necessarily a bad thing. As mentioned, their capital discipline in recent years was rubbish. Last year, they generated enormous new business and supposed profit...resulting in a cash outflow and destruction of shareholder value given insufficient share capital. For me the business needs to be sustainable, cash generative and net asset value accretive. If its not, then its worth well over a £1 in run-off.

Let's have an FD that uses the following KPIs as well - net asset value per share, cash flow per share etc., rather than the sales led organisation that this has been!

[tsmith2] 16/5/2019 08:14

will be interesting to see if these test the recent low that was put in.would then expect to see a leg down before finding some bottom but may be 60p is floor on watchlist

[scrapheap] 16/5/2019 08:13

shambles... with q2 seemingly healthier,that is something but what a mess they've made of this business sadly.

[tsmith2] 16/5/2019 07:38

probably goes someway to explaining the slump post raise

[18bt] 16/5/2019 07:30

Pretty appauling new business figures, but at least some acknowledgement that more cost cutting is in order - they could cut a few NEDs. At least they are conserving the increibly expensive capital they raised. I wonder also whether they are having trouble attracting a new CFO of any quality as that search has been going on for some time.

[nav_mike] 14/5/2019 18:36

Largish 5.1m trade went through today...

[topvest] 13/5/2019 19:19

I'd rather just swap my equity in this for a bigger stake in LGEN. Time will tell, but the strategy is rubbish and needs changing. A 7 year old could work that out. The Board, of course, seem more interested in their bonuses.

[18bt] 13/5/2019 07:40

Topvest, my preferred solution is new Chair, CEO and CFO, but that they sell Partnership Life, which is closed to a run-off company (e.g. a PIC, Phoenix or Rothesay Life who are all big but underweight in ERMs, for say 65% of EV), reinstate the dividend and keep trading. I don't see why a big acquiror should use equity to fund.

[topvest] 11/5/2019 11:58

Annual Report finally arrived. Front cover "Growing smarter" - they must be having a laugh. Nothing smart about the way they have been growing. Think that is a very inappropriate front cover given the destruction of shareholder value in the last year, due to their lifetime mortgage spending spree!
I'm voting against most of the resolutions, not that it will make any difference!

AGM date is also wrong. 2 months to finalise an annual report dated 14 March 2019. Why? KPMG signed the audit report on 14 March 2019 and so they shouldn't have changed since then.

Accounts fail to disclose anywhere the most important number. 177p book value per share. Also cash flow per share isn't disclosed or the real reason for the loss in the year. To be honest, I think the accounts are overly complex and don't tell you what you really want to know without getting your calculator out. We need to be acquired or have a new Chairman, CEO and CFO. The Board might be customer centric, but they haven't got a clue about building shareholder value!

I am hoping that Legal & General come along with a £1 or £1.20 offer, using their paper.

[robsy2] 10/5/2019 15:11

Thanks 18BT. I am fairly hopeful here, but my buying in price is pretty low. Let’s see what the update says. I just think that there has to be value here and it will out at some point ,possibly as others have intimated ,through a bid.
R2