At least the Orangutan has a life Skinny. spud |
That's me to a 'T'
Fame at last |
The down ticker :- |
This was trading at 300p+ just prior to Covid. I'll make that my medium term target price though doubt I'd sell even at that level ... |
I guess with all the zillions of sellers on Friday, some will buy back into LGEN - as they must have been attracted by dividend yield in the first place... So we should expect some price recovery next week... But not sure how much.
Depends on what happens to the others (MNG, ABDN and PHNX)... |
Hey guys. It's NEILYB675 that does all the downticking across large swathes of ADVFN regardless of the post's merits or otherwise.
Hope that helps |
For the 100th time, this is yer bot. He spends a fortune in order to downtick on multiple threads:Neilyb675Member since: 16 Dec 2012PREMIUM |
I seriously doubt it's a bot Nobody is going to move the market in a £14bn market cap company with a downtick on every comment Plus you'd want to downtick bullish posts only Nope it's a sado Funny as if you downtick everyone you downtick nobody |
For this deal the given up net surplus generation has been stated as £200m to £250m. The saving from the new buyback of 7% would be above £80m. The difference of £120m to £170m is on the scale of a rounding error in the context of other variances. I still forget too that economic earnings should include the net increase in CSM & RA which is same year earnings but deferred. This is around at least £750m going forward and with a balance sheet like L&G's there is merit in including this in a preferred dividend cover calculation. I can see why L&G given the loss of statutory earnings re this deal are still talking up shareholder returns as incremental to existing distribution policy. The bigger picture here for dividends is the transformative bigger picture. My only question is what does this really do for their sales distribution in the US which will need to be proven. |
Because without the ability to grow the share price gets depressed and then comes along US PE and one less investment option for us I'm happy with LGENs growing divi - but I won't be able to hold it for 20 years plus if the share price doesn't grow as it will get broken up |
I'll probably be selling some far riskier stocks (that have done fantastically well of late (eg IAG )at some stage this year. Feel easier about dumping them on L&G, despite the dire share price performance over the last few years. Sub 220p a better price to add. Whether we see that again (probably) though...As someone said. Even if the share price goes nowhere (likely) circa 10% a year will do. |
Cardinal, I've come to the conclusion that it's a bot doing the down ticking, probably created by a shorter, as so many threads are like this now. Advfn really should do something about it. |
Think in light of comments in weekends newspapers might have to swallow some pride and add a few if the price is acceptable . Don't really want to buy above 244 as was my previous target price and I am still unconvinced due to the rapid sell off on Friday
We shall see |
jam, good point about buybacks. Regarding yump's comment about entrepreneurs, it's all relative.
Meanwhile I'm puzzling why someone takes the trouble to tick down every post. Maybe a mental health reason. |
Me too. If it's a generous dividend payer (8%+) why would you expect a large annual share price capital gain as well? Sure, they could switch off the dividend and capital growth would/should follow, but what would be the point? I guess the expectation level of some is totally out of whack with the companies they are invested in. spud |
MisterMD
Yes the larger ones have always generally been safer.
I was more puzzling over why posters seem to get upset if these big companies don’t grow. |
Any concerns regarding the sustainability of the dividend are very much misplaced. Firstly, the U.S earnings that are being sold for an exit multiple of 30 times represent a small proportion of overall eps. Secondly, Legals is not a capital-intensive operation so a cover of just over 1x is more than sufficient; The more important feature to follow for this type of company is the flow of funds/cash-flow. Remember, many of the adjustments applied to eps do not involve any cash outflow.
Finally, the number of shares to be bought by the company over the next three years will represent a decent proportion of the current issued share capital. Whether these shares are cancelled or go into treasury is irrelevant as they will no longer be represented within the number of shares in issue for the purpose of eps calculations or dividend payments. The net result being an accretion to eps and far fewer shares receiving the dividend. |
Typical of the LSE to pour cold water on positive news! On another topic the stamp duty on UK shares is beginning to annoy me vs the US in particular, but not so relevant for LGEN being a long term hold for me and probably quite a few others. |
If you take into account the other big finance big dividend yield companies share prices fell (ABDN, PHNX and MNG) - I guess we would expect some pull back and perhaps it was over done.
I'm hoping for a bounce on monday but it depends if the others bounce too.. Its like the three monkeys except there are four. |
Has anyone got the time line on t/u and results
I have 12 march as date but happy to be corrected.
have a good weekend |
yump re: 'Large businesses can generally only stay the same or get smaller, unless they’ve got a monopoly.'
Not sure I fully agree. I've found I've done much better with my investments since I moved to large cap stocks. Hence I go for Rio Tinto instead of AIM listed resources companies for example!
I particularly like these big, safe dividend payers as it makes me re-think where to invest the payouts each time. |
Sir Nigel had his strengths but if the share price was low he would have been the last person to break the group up Whereas our new ex-Mckinsey CEO would be the first person to do that That said I do hope to hold onto my shares for 20 plus years |
I don’t think the 300m surplus is correct , in that it must be a one off adjustment . The pbt is only 90m from the US.
Once this is clarified it will help immensely.
And to note 2025 surplus is due to lgen as deal completes end of year |
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