My first purchase was at c80p and I added a lot when Truss blew up the gilt market - so it's now my third largest holding You just have to accept that it's LSE listed so it's hard for the share price to rise much, it'll range trade and with a high beta it will sell off badly when markets dive So long as you understand that and are comfortable with the volatility then it's wait and pick up the growing divi Just wish they paid the divi quarterly rather than the uneven distributions they currently make which just add extra vol to the sp |
The annuity rate will always be higher than gilts but the loss on reinvestment will be much less when gilts are 4 as opposed to when they are 0.5% They typically invest in shorter dated credit assets and longer dated infra/real estate credit and then get their required duration via interest rate swaps |
I presume we’ve got a child posting judging by the pointless “lol” and the contradictory paragraphs:
UHOUND7
Wait until the rest of the business gets sold for a massive premium too! Lol
I guess for some impatient investors who have only been in here for a couple of years, they are disappointed they have seen no share price growth despite collecting a good divi.
Had you bought a while ago or more recently, then you will see things differently.
Erm… eh… what?! |
Wc #696. Not quite automatic perhaps? If a plan has several annual multipliers and one of those is higher than gilts then there is an annual cost. |
sicknote: sick as a parrot. LOL
I'm sure it will come good. |
Indeed; with Cala gone, US sold, it's clear that the strategy is to either get the share price back up to a level that gives them a cost of equity to expand in PRT else do sell of until it becomes a digestible take over target |
Dare I suggest that:
It might be easier for Meiji Yasuda to buy the entirity of LGEN, rather than completing the transaction for £1.8bn and purchasing just 5% for a further circa £0.8bn |
Common Who hear who is crying about the share price falling also, like me, sold some at the open :) Our natural instincts as long term holders will have been felt by institutional holders too It's still great news Ultimately if the share price doesn't respond - which would be a great pity - then this is the start of winding up the business Either way we gain |
Wow ! Started in a high ! Finished flat !! Net ! What's going on ! Cbg went the other way !!! Started lower and climbed to a high !!! |
They actually benefit from higher gilts The gilts they hold are mostly hedging annuities Higher rates means higher annuities and more demand it also reduces the longtivity risk as if annuity holders live longer than expected LGEN can reinvest at higher yields However as we all know, higher rates are not good for the sp |
It's a multiple arbitrage; if that's in your favour then it is unleashing value If it isn't then it's not All this tells you is what an utter dog the UK markets are Alas LGEN is too politically sensitive else it would either have been taken over or re-listed We will be one of the last companies on the LSE before it closes down (which over next 10 years is far from a remote risk) |
Oh well, back to the hammock for me. |
Will look to buy a few next week after the CPI news . Bargain or not solid divi |
It's amazing how the stockmarket can change encouragement into disappointment so quickly! |
Share price unchanged on the week ... |
Wait until the rest of the business gets sold for a massive premium too! Lol
I guess for some impatient investors who have only been in here for a couple of years, they are disappointed they have seen no share price growth despite collecting a good divi.
Had you bought a while ago or more recently, then you will see things differently. |
Japanese buying 5% of the company...
Is worth a 5% increase in the share price...
As is the new business deals with the JApanese..
The sellers will all be back...
they all thought it was good yesterday...
So we know its better today...
They will buy back...
Or miss the boat. |
Just goes to show how many folk don't really know how a business works. Selling off part of it doesn't suddenly produce money out of thin air. I think the mm's know that.
Perhaps if the media and the analysts had been going on about such a deal being really good for the business for a few months and then it happened, that would permanently send the price up.... If it was clear exactly how it would benefit the business.
I suspect the 'official' jury will be out for a week or so. |
Well, that turned out a little disappointing. |
7% drop?Anyway excellent news today and this is an investment for me with cracking divi. Looking good going forward imo |
From a technical point of view.... there has been a lot of trading in the 220-230 region during the last 6 months. There hasn't been too much in the recent 230-240 range, so its perfectly understandable that trading over 240 is going to bring out some profit selling.
However, if 240 becomes the new base after the long accumulation below that then we should have a nice breakout. |
Skimming the LGen news this morning. Had closed some bullish positions yesterday. The difference in option price probably 1p today so no big deal.
It looks as though this is another example of a UK group reducing overseas exposure. Also the sale to slim down operations doesn't IMO fit well with expanding the pension DB business; which is it? Reduced further today. |
I can't recall seeing something like this......264 in the opening auction and then straight into reverse.
MNG is down 1.5% and Aviva is off too.
So, buy back in or wait?
I am inclined to wait
this has all the smell of ITV another value trap that I am trying to exit at even. |
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