Legal & General Share Discussion Threads

[cyberian] 05/3/2024 13:50

Last set of F/Y results for our esteemed CEO so I doubt that he would not want to move on without an expression of full optimism for the future of LGEN he has built. His legacy is assured and well deserved.

[tuftymatt] 05/3/2024 12:34

I would be happy with a stonking set of numbers and good forward guidance.

The market will do what the market will do and as long as the company is doing well we have to hope that one day the share price reflects that.

Good luck all 👍🏻

[chiefbrody] 05/3/2024 12:24

If it does plummet tomorrow (or say drop 5%) then that'll be an opportunity to buy/add. Personally, I'd like a stonking set of numbers with good forward guidance and the share price to fall 10%. So I can add.

[123trev] 05/3/2024 11:40

Obviously the elephant in the room adding to all this is the amount of cash in interest earning risk free deposits and yes I see the share price is rising but?

[mcunliffe1] 05/3/2024 11:33

zac: thanks for those figures. I tend to view my holdings in LGEN and PHNX particularly, and probably BATS, RECI and TFIF as alternatives to an annuity. For that reason I'm disinclined to sell these holdings so a drop in share price becomes academic.

I hold other shares that I'm looking for a quick upward movement and then cash-out for a small but decent percentage return.

ABDN is a classic example. RR likewise but I don't want to cashout too soon on that as I believe there's a long way to go.

Tomorrow is both budget day and full year L&G results.

There will be people in the 'know' if there's anything in the budget that may affect Life Assurers such as LGEN and PHNX.

Interesting times.

[zac0_4] 05/3/2024 11:31

I Like Beer - " . . . Are you sure the total return figure is correct? . . ." Yes.

" . . . Fund platforms have a habit of calculating that you paid for reinvested dividends . . ." - They do. Because it is a cost.

You've bought more shares. Instead of receiving the dividends they were reinvested on the 12 month anniversary of your purchase your total return today, over the 5 year period, would be 19.4%

[123trev] 05/3/2024 11:30

Given the write downs in the first half the unknown impact of IFRS on the full year and the current punishment given for failure at the minute the risk/ reward here doesn’t stack up for me. The new CEO exploring new avenues boutique investment advice from an ex chancellor to a banker a few other major changes hmmm could be wrong but hey sleep is important to me lol.

[zac0_4] 05/3/2024 11:22

" . . . Dividends may have been more than 25% . . ."

You are correct. In fact had you purchased 5 years ago today you would have received dividends to the value of almost 32% of your initial investment. The problem you (we) face is that if you sell today your capital has reduced by 15%. So, a total return of 17% (ish)

[supermarky] 05/3/2024 11:17

i hope it is not a huge plummet day tomorrow on the results. It always seems to happen these days on good and bad news with UK shares. Anyway i am holding firm and looking at the divi. Will buy more if the opportunity arrises.

[mcunliffe1] 05/3/2024 10:31

GB00B2Q6HW61:GBX



above link will provide some info.

[huckers] 05/3/2024 10:06

Thanks MCuncliffe1! I'll read up on the fund.

[mcunliffe1] 05/3/2024 10:01

Sorry: I should have expanded upon the code but matron shouted my porridge was ready :-)

The ISIN or CITI codes are easier to define a specific fund as there's so, so many with similar names.

[zac0_4] 05/3/2024 09:38

"What on earth is GB00B2Q6HW61:GBX?!" - Legal & General International Index Trust

[huckers] 05/3/2024 09:05

I'm familar with LGGG. What on earth is GB00B2Q6HW61:GBX?!

[mcunliffe1] 05/3/2024 08:54

I appreciate the point I Like Beer made in respect of platforms adding in the cost of the dividend purchase of shares.

I can see why this is so as that dividend paid in cash could be instead invested in something other than the underlying share.

However, I take note of zac's initial point. I'm 50% invested and 50% cash at the moment in my SIPP. I too think the UK market is underpriced but the only way that is likely to change is with a wall of money heading into UK stocks as it has been doing with US stocks for some time. That scenario would likely only happen after some seismic event. For example, after the next gen. election where the winning party (if there is one) unveils a clear financial growth package.

LGGG and GB00B2Q6HW61:GBX have both been on my 'watchlist' of late.

[luderitz] 05/3/2024 06:33

What a good point you make unastubbs.

[unastubbs] 05/3/2024 06:31

Dividends may have been more than 25%. Say they were 35% over five years but take away a ten percent share price fall and you might very well get the figure that Zac mentioned.

I sympathise with your view. I keep having the same discussion with myself. But I genuinely feel that UK shares are colossally mispriced. I can wait for the market to recognise this and take my dividends while I do so. However, that said, from now on any spare cash will be going to a Global ETF I think.

[i like beer] 05/3/2024 06:06

Are you sure the total return figure is correct? Dividends alone would be more than this? Fund platforms have a habit of calculating that you paid for reinvested dividends making the total return look much smaller than it actually is.

[zac0_4] 04/3/2024 22:11

I've finally come to the conclusion that I can't beat 'the market' and I've been trying for years.

If 'the market' is simply the global economy then that's what's available for me to invest in. Year in and year out I try but (with the odd exception) invariably fall short. My investment here continues to fail to beat 'the market'. I'm probably at the stage where I'm accepting that I just can't do it. So, on that basis, I'm going to increase my exposure to something that just tracks 'the market' and decrease my holdings in things that I invest in that continue to underperform 'the market'

Here's an example of what I mean - LGEN 5 year total return +24%, LGGG Global equity etf +83%. Very few of my holdings beat that . . . do yours?

[tornado12] 04/3/2024 18:30

Need the new CEO to keep the ship moving in the current direction. LGEN must focus on their strengths with plenty to go at in PRT and the like. Don’t want to see new ideas that are not core to the current business model. Nothing wrong with boring and giving predictable revenue growths and divi by 5% YoY. Expecting 2023 at 20,34 and 2024 +5% to that. Not long now GLA

[geckotheglorious] 04/3/2024 16:55

MCunliffe.

Agreed. Drax isnt green at all. Be better to burn natural gas sourced in UK imo - localised, local employment & tax revenue whereever situated, no massive pollutive transport costs.

And we should be planting trees if anything. Don't see a campaign by the global warming alarmists to do such.

[mcunliffe1] 04/3/2024 15:12

DRAX has to be a classic example of ESG stupidity.
I mention it here ONLY in respect of the ESG aspect. I hold no DRAX and don't want any.

On the ESG scale of 0 to 100 where 0 is deemed to be good DRAX has a score of 23.5. This is whilst sourcing wood from forests that are not ideal (Canada and USA) and take years and years to replace. Then, that wood is pelletised - shipped several thousand miles and burned in the power station near Goole.

Oh, and whilst taking government subsidies for being a 'green' energy producer.

You really couldn't make it up.

I hope L&G have a corporate spine and continue to invest both in areas that maximise profit and that provide tangible benefits to the country. Investment in armaments counts very much as beneficial in my book. The holding of such equipment is no more damaging to the environment than financing the production of cars or civil aircraft and shipping. It's ONLY when those armaments are used that tthe environment suffers.