Legal & General Share Discussion Threads

[davethehorse] 11/5/2022 13:56

Oh dear down we go with the US again...

[adejuk] 11/5/2022 11:03

i don't have any major angst about a recession
however, when i think of the global level of debt, sovereign and private, i want to take a valium

[trcml] 10/5/2022 15:25

al101uk thank you for your comments. I'm inclined to assess in a way that often (invariably) overlooks other ways which means I can miss out. As a LGEN customer (equity release) whose mortgage will on interest double every 20 years, I like the idea that the yield I can get from the shares exceeds the nominal interest rate per annum (fixed) by approximately 3.8%. As for capital growth that depends upon timing of the purchase share price Whether LGEn will reach £3+ again would be nice I suppose. Also I prefer to invest in just one or two companies: currently I have four of which one is suspended, When the two i don't want (including suspended) go up I shall sell and buy some more of the others (LSEG and LGEN).

[actybod] 10/5/2022 12:16

Added and will continue to accumulate for the long term divis......will they ever get bought out?

[novision] 10/5/2022 11:37

Agreed, bought some more with my PHNX divs. Felt rude not to....

[tornado12] 10/5/2022 10:11

Be nice if this could go sub 220 for divi payment day. Just like pandemic this will be a gift price from the FTSE. Not sure it will reach the lows, but I guess this depends how crazy interest rates will go vs recession.. strong and long here as my No.1 investment

[al101uk] 09/5/2022 13:32

TRCML,

L&G invest in lots of different kinds of assets, reducing the amount they effectively MUST invest in to Gilts gives L&G flexability.

I admit the timing is calculated, it would have been nice to give Insurers the option to opt out of bonds when bonds were low and falling, but I guess low and rising is still better than nothing.

The changes will be more nuanced than "you can sell gilts and reduce your Solvency II". I would assume a combination of of the following:

The threshold will be lower, so all being equal L&Gs Solvency II would increase and surplus could be released as a result.

Investment criteria will be relaxed, so more of L&Gs assets will be counted as part of their Solvency II which again will raise their surplus.

They will have the option to invest more of that Gilt money earning next to nothing in assets that are riskier but also have a higher expected return which in turn also increases the Solvency II ratio.

Obviously we're relying on the government to keep sensible regulation in place, but Solvency II is stifling the insurance sector for no good reason in my opinion and needs some adjustment.

Whoever is right, in the medium term, the party hasn't even started... we can all worry after the boom if it's gone to far (isn't that what we always do) :-)

For now, the relaxation of Solvency II is good for L&G and that's what matters to me at least.

[marktime1231] 09/5/2022 13:25

Nigel has indicated he wants to spend the surplus on things like low-cost and build-to-rent housing, investing some more of our money and co-investing lots more client assets. No doubt minded to finance other long-term projects too. He is all about finding more exciting growth opportunities with a bit of venture capitalism, having stabilised the core business where organic progress is steady rather than thrilling. And why not. Maybe not that scary idea to help develop the investment management sector in China.

If you don't trust LGEN to invest our money well, more profitably than sat in low-interest bonds at a time when inflation might hit 10%, then you should definitely be elsewhere.

[klotzak] 09/5/2022 13:16

Averaging is probably the best way at the moment. My broker charges 1.50 if I do regular investments, but then you can't really buy on troughs, you get what you get on that particular day of that month. Otherwise it's 9.95 per trade.

[tornado12] 09/5/2022 12:17

I agree , not fundamentals only market chaos. The bottom is always difficult to call and if US makes aggressive hike in interest rates in June could turn down even more .. investing in small lots is my approach over time

[geardown107] 09/5/2022 11:38

I reckon it's an opportunity, it's just hard to know when it's bottomed out. It's not being punished by the city, the whole market is sad. Aviva has dropped like a stone too, albeit it weathered for longer, perhaps because of the shenanigans with the cash return.

[rogerramjett] 09/5/2022 11:29

Almost back to pre 2000 levels. Should it be ? Are things really that bad ? Or is this an opportunity?

[tornado12] 09/5/2022 11:07

Never thought would see a new opportunity to top up here. Waiting for my divi payment but this will once again be on the radar. A top drawer divi payer and share price movement are no long term concern for me. We already went through the most critical downturn since WW2 and LGEN weathered that and improved revenues since. This is a good base to build your ISA divi portfolio tax free !

[roguetraderuk] 09/5/2022 10:45

pre vaccine swing high just above 200 looks like a decent entry point if seen

[adejuk] 09/5/2022 10:25

that would include me

[bothdavis] 09/5/2022 10:11

But......when shareprice recovers, divi hunters will still be collecting dividends and will not have panicked. Indeed, may have purchased more to increae income!

[adejuk] 09/5/2022 10:03

i fear we could see 200 ish.
great yield but at a price for lth

[trcml] 09/5/2022 09:25

"gov rules about to change…" The underlying reason that the Gov is keen to reduce te solvency ratio is to enable the Treasury to extract tax revenue from whatever the life insurance companies buy. Currently the level of solvency is in the share price If after the ratio is eased LGEn were to spend any of the released money a) there is not telling what they buy would perform at least for shareholders; b) who else would buy the sort of assets that the Gov is keen for the money to be spent on; after all if the potential were that great buyers would be queuing up already; c) just because it might be a (life) insurer investor buying doesn't make the investment any less risky; d) a reduction in the ratio would make LGEN less stable.

[davethehorse] 09/5/2022 09:21

Those divi hunters that held ate being caned now re capital loss

[buywell3] 09/5/2022 09:21

free stock charts from uk.advfn.com

[trcml] 09/5/2022 09:06

i'm inclined to agree that in the 200s is imminent, In fact I took a small loss when i sold recently to avoid a bigger loss if my prediction comes true. I reckon LGEN's air value is around £220-£2.25 and that the share price will remain there for quite a while. My assessment is based on NAV £1.85 apparently - thank you to the person who answered my question - plus 20% for potential. The snag with companies that forecast their own growth is that the share price includes that expectation. Also LGEN is a div yield / income stock which in itself effectively confirms hardly any capital growth. Since LGEN is focuses on property-oriented investment that in itself is exposure to a cyclical market. Too much money combined with chasing yield inflated the share price to over £3, Of course I may be wrong which is partly the reason for DYOR.

[adejuk] 09/5/2022 08:01

sell in may
come back on st ledgers day

[oggyrocks] 09/5/2022 08:00

Might not be today, but think 229 be coming soon.

Have some monies waiting. Don’t hold any here at the moment, but this share looks good for a mid term hold if can buy in in 220’s.

Think a bit of patience required as more market turmoil in the weeks ahead.