Lancashire Share Discussion Threads

[falklands] 20/12/2013 12:17

Nicely moving back up

[falklands] 27/11/2013 08:30

Indeed heavy buying yesterday for the dividend though shows faith.

[stevetk] 25/11/2013 23:57

Special dividend ex date on Wednesday.

[falklands] 12/11/2013 08:23

With respect you always moan and sell on all the oil stocks I have seen you on that's your style.

I tipped lre on my twitter because of the medium and long term. This is not aim where you have to sell post news, cannot see the logic of selling at a loss, at least collect the 4% div and then the share price will rise in time for the bumper one in March results, which we all know will be bigger re webcast confirmed holding 20% back, this will be distributed ontop of final special dividend and final dividend.

UC is correct if you do not want the dividend why invest in this in the first place as the highest dividend paying stock I know ?

Growth will come as can be seen from webcast far more than hiscox.

Interest rates are forecast to hit 4.5% re panorama last night this will give a massive boost to earnings through cash investment part of business causing a rerating of the sector not to mention cathedral lloyds angle.

[salpara111] 11/11/2013 21:06

Well, I have decided that I will sell into any strength prior to the ex divi date at the end of the month.
Lack of interest and the relatively poor results are going to hold them back in the 3-6 month timeframe.
I will keep an eye on them and would certainly look to reinvest in the future as long as the next set of results is stronger.

[undervalued companies] 07/11/2013 10:32

nice article on expectingvalue.com about lre nov 6th see twitter as well.

[undervalued companies] 06/11/2013 13:36

last 12 months so has gold so has oil its a sector thing however as i have stated situations change.

I would add hiscox is far more worrying due to the article i read its putting all its energy on new IT and retail thereby cutting the div for the next 4 years see independent dated nov 4

[salpara111] 06/11/2013 12:35

Long term I agree but over the last 2 years it has substantially underperformed the market, even allowing for the large divis.

[undervalued companies] 06/11/2013 11:58

Sal over the years lre has not let down investors and I cannot see why the co cannot grow by double Market cap over the medium term excluding 10% div forecasted for 2014 onwards.

We all know interest rates will increase and this will put the sector in favour to PE of 15 again once this stupid period of low interest rates is over effecting the sector est to change second half 2015

Personally since lloyds names lre wanted to increase business in areas they could not gain before ie Latin American which is a growth area. Should hear something later on today.

[salpara111] 06/11/2013 11:38

I look for companies that I feel are good value, I really dont care about the divi level.
I look at the overall return for any given period of ownership.
I tend to hold a stock for around 6 months and if after that period I can't see a material near term upside I will move on.
Clearly I will get a divi here in the next 4 weeks but if the share price is marked down by the same level it is pointless.

[undervalued companies] 06/11/2013 11:06

sal there is a div its just been reduced and then increased in 4Q. As for timescales some have run off to hiscox no doubt paying a pe of 12 but they themseleves will be hit by the same conditions re weather in eastern europe effecting profits.

More to the point lre has the best ratio long term. As for trading well i think the easy time of last years fully reflective now so pis can be jumping into the fire.

If you dont need the dividend income why the hell invest in non life insurance thats the main reason high income plus growing share price over time ?

[salpara111] 06/11/2013 10:33

If I were a more passive investor then I would view LRE as a good core holding however I am trying to work my portfolio harder and given that I hold from 815 without any divi clearly I am unlikely to see any decent return here in the next 3 months, I am very tempted to take my money off the table but as I mentioned above I don't have a good alternative right now so I will see how it performs over the next few days.

[undervalued companies] 06/11/2013 09:59

Morning sal I would add if peeps read the RNS they have held back 27% of payment until Jan reinsurance is known so they expect to pay higher special div 4q.

What really was a kick in the pants is snow balls in Germany in august costing $55m shows what a good div it could have been and that bloody ship with costs a some point stopping.

Frankly lre is undervalued to it peers sub PE of 9 and the gross book increased 10% So not sure about overall reductions with there outlook in 2014 looking stable.

Looking forward to 2.00pm presentation

Cathedral full accounts have not been added giving a boost IMO so you see all the pain without the gain and I recall peeps saying no special div due to acquisition.

[salpara111] 06/11/2013 09:08

Well, the results were pretty much as I expected.
The difficulty with LRE is that they will not chase business they don't see as being profitable which means that the numbers are all pointing down right now.
It is clearly a very sensible long term strategy but the market likes to see bigger numbers even if the underwriting is reckless.
I was not certain that they would pay any sort of special divi so I guess the fact that there is one is good but I guess there are plenty of holders who are unhappy that it is much reduced from previous years but that was inevitable with the purchase of Cathedral.
Cathedral has yet to really show itself in the figures which is why I am inclined to hold for the moment as I don't see another more attractive place for the money.

[pyemckay] 06/11/2013 08:35

28p dividend with a mixed bag of results.

i sold as there are better opportunities currently.

[undervalued companies] 17/10/2013 15:55

all in good time sal with special dividend to come.

[salpara111] 17/10/2013 11:06

Well, the downtrend appears to be broken, to be sure we need it to break the 820 ish level.

[undervalued companies] 10/10/2013 07:17

Well at least will see the investors day webcast on lre site mrs uu will be pleased or no food for me this month.

[undervalued companies] 09/10/2013 16:03

Expectingvalue.com is another both can be found on twitter

[salpara111] 09/10/2013 15:02

UU, thanks for the reference.
I have just had a look at that website and found it interesting.
I am unclear who is writing it but the couple of articles I read do seem to be pretty well researched and written.
I am inclined to agree with the synopsis, in that some of their traditional business lines are being squeezed but they have shown a nimbleness to move to new opportunities.
He is basically saying what I have in terms of the Cathedral acquisition ie they need to show that it was one of choice rather than necessity.

[undervalued companies] 09/10/2013 12:25

If you have access to valuevista.co.uk blog done a nice write up on lre dated oct 3rd

[salpara111] 09/10/2013 08:41

Well we can but only hope that the next results are upbeat to get this share price trend turned around!

[undervalued companies] 09/10/2013 06:35

Investor day nov 6th at stock Market plus results methinks are good or would be poor PR !