I hate buybacks
never experienced one that led to an increased share price |
Blow me down with a feather!
Put some on the book, to buy, at a fairly random price of 246.2p and, colour me shocked, I've just had the contract note in for the purchase. Didn't think it would hit this level given this morning's deal and the start we had-but that's the UK market for you.
It'll probably be down by the end of the day and I'll be regretting this top up :-(( |
At 30x earnings though!! |
At 30x earnings though!! |
Williamcooper104,
Because they’re selling part of the business that generated profits.
netcurtains,
Why does it equate to a huge rise in the dividend? Most of the money is going on a buyback. Appreciate there will be fewer shares but they are selling quite a reasonable chunk of the profits as well. It is only earnings accretive to the tune of 1-2% and so not a big game changer.
If you all read back on the thread there were concerns about the affordability of the dividend prior to this deal and has a lot really changed? |
Hard to see how the divi will be uncovered as a result |
Let it settle after profit takers then the big boys will keep buying....gl. |
Yes agreed.
Obviously the news equates to a huge rise in the dividend (not yield)
eg 40% instead of 25%-30%
and
a huge rise in American market oppunities
and
this new Japanese partner.
This should all be at least 10%....
Perhaps a lot more.. |
This should be a lot higher on the back of the news. |
There’s a big buyer out there, wonder if it’s that Japanese outfit picking up their 5%? |
If the general consensus in the city is that the dividend is now going to be uncovered for a few years then that will be what is taking the initial euphoria off the share price. |
The difference between here and the US is that in the UK, the majority are happy to either spend any spare money they have or just stick it in the bank. In the US, people want to invest for a better life and generally put any spare money into the Market thus boosting share prices.
spud |
Over past month and a bit ABDN still done better than LGEN and LGEN only marginally better than MNG..
This probably means LGENs price is still miles too low considering the news... |
I can see why many corporates are dropping their London listing and moving to the U.S.
This morning’s announcement should have resulted in an immediate and SUSTAINABLE re-rating of the company’s equity but as we approach midday we are now dipping below 250p.
The immaturity of the London market, including its fund management community can only further drive decision-makers away from London.
A 7% prospective yield is what I expected to materialise, but here we are with the prospective yield moving above 8.5%. |
Post 7602 - 1robbob - I'd add 'again' to the end of your last sentence. |
Our wonderful stock market strikes again. If we carry on like this we could still finish red. |
With CAGR of 12% over the next three years, and that’s without relying on any rise in the underlying, only fools should be selling this. More than happy to buy their stock once it averages me down again (241.5) |
I'm expecting L & G to begin a £1 Billion share buy-back when the sale of its US protection business to Japanese peer Meiji Yasuda, is concluded |
own to 247 :(
Must be some real selling going on from a lot of stale holders |
looking to nab a few more on this pull back. I am already slightly overweight here.Very happy holder |
Yep big wave of sells on the book now. Placed a limit order at 241.5 for some more... |
You would expect 1% to 2% fall from high as the market price in other big DIVIs (PHNX, ABDN and MNG) is down.
But 3% or more down is becoming a bit too much and possibly a buying opportunity..
That is what it amounts to.
3% down on open.. |
Looks like every man and his dog have been selling into this news - Just as well it was good otherwise lord only knows what the MMs would have done to the price!
spud |
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