Legal & General Share Discussion Threads

[marktime1231] 06/3/2024 12:19

Well it hasn't taken long to bounce back from the over-reaction first thing this morning, the business is still just as sound and the dividends will continue to flow. We were warned about the hit from asset values but it has also clobbered IM operating profit more than expected, wiping out PRT gains. This will bounce back as asset values recover. Also a strange hit to longevity contribution due to accounting changes which I did not understand.

Of note -

LGEN will not hesitate to consider buybacks while hesitating to run a buyback

Probably why the Outlook section was thin, Simoes is working on a new / his own strategy plan for a Capital Markets day 12 June, it must be well advanced already, to replace Nigel's 5-year plan which completes this year and explains why the dividend forecast of +5% is only for 2024.

If the ambition is to be more international the short step to achieving this would be an international M&A.

It would be good to hear what LGEN plan to do to close the 10-20% gap between the share price and what LGENies think it should be. If that means switching from reinivesting surplus capital into business growth ventures to buybacks so be it. Not much of a case for sitting on a solvency surplus of £10B when interest rates start to tumble.

[unastubbs] 06/3/2024 12:10

Positive finish now all about Chancellor of the Exchequer...I'm wondering if (as Skinny mentioned earlier in relation to the FTSE futures) we might have a rare day when UK markets outperform. But wtfdik😹

[jonnybig] 06/3/2024 12:04

ABDN would have been less than a quid without the buybacks so certainly worked to support the share price

It's basic economics. Supply and demand and all that stuff. Even a blind man can see it!

Anyway. Positive finish?

[unastubbs] 06/3/2024 12:02

abdn will come good. In the meantime they have bought a shed load of shares, the dividend bill has reduced and adds greater confidence in its sustainability. OK they didn't buy them at the absolute bottom...so it goes. I'm happy to hold abdn but only 3% of portfolio. LGEN is a much bigger proportion

[tornado12] 06/3/2024 11:57

ABRDN has spend billions in buybacks and it never solved their core issues in losing business YoY with weak/opaque strategy. LGEN is a growing business with well loved strategy, and multi-billion opportunities to grow in PRT / expected rebound in AUM as interest rates fall... Lets grow, grow, grow ...

[unastubbs] 06/3/2024 11:56

So you get to own more of the company and a fatter dividend too.

[unastubbs] 06/3/2024 11:55

Exactly Jonny, as if the dividend here wasn't big enough already. You can still get increased dividends with buybacks. The pot can remain the same and with a reduced share count the payout per share can increase.

[jonnybig] 06/3/2024 11:52

Well said unastubbs, buybacks are a must. My BARC and LLOY are motoring due to the buybacks. Great stuff 👍

[anhar] 06/3/2024 11:33

I'm happy with the figures, as a long term hold income investor, because they followed through as intended on the 5% divi increase. Also, reconfirmed intention of a further 5% rise for 24.

Share price? I have little interest in that. Gave up worrying about it decades ago.

[unastubbs] 06/3/2024 11:27

agree with lignum, the new chap was good...from a presentational point of view. but in the end the numbers are what count. everything now focussed on the capital markets day in June.

[unastubbs] 06/3/2024 11:26

i love buybacks. unsure what the problem is with them. owning a greater proportion of a great company as the share count diminishes and receiving a great dividend simultaneously. this is not rocket salad guys!

[lignum] 06/3/2024 11:23

I thought the new CEO was very good on the call and had a good mastery of detail. Also I got the impression there is a degree of kitchen sinking in these results which should allow for a bounce back in 2024.

[anhar] 06/3/2024 11:20

Small private investors are generally opposed to BBs and would prefer higher divis or maybe debt reduction.

However PIs are irrelevant to big caps who are influenced only by their institutional shareholders in making BB decisions. These investors overwhelmingly prefer BBs and that's why the BB pandemic has spread so widely.

It's so entrenched now that companies seem to fear not following the BB fashion, like a teenager desperate to wear the right gear so as not to be different. Credit to LGEN for not joining in.

[spud] 06/3/2024 11:19

tornado - Agreed. Refreshing to hear a voice of sensibility and reason this morning.

spud

[unastubbs] 06/3/2024 11:17

now bouncing, so one of the better orchestrated analyst calls. i was most impressed by the lovely legs on one of the management team...Laura something. Perhaps that's what caused the upward trajectory ;-i

[tornado12] 06/3/2024 10:50

I am absolute no fan of BB and LGEN should use its profits to speeding up organic growth (like PRT acceleration in US) and increase divi 5% YoY.......today the yield is 8,5% and next year will be 9%... Absolutely barmy in the not loved UK stock exchange

[123trev] 06/3/2024 10:32

The problem now is any major hit to stocks and property values and the unknown direction that the CEO is taking this stock moving forward. UK infrastructure investment although not really touted got to be on the cards with an ex chancellor on board and a government that’s on its knees regardless if it’s labour or cons. Governments have finally grasped what Warren Buffet new many years ago the trouble is unlike Buffet the government of the day will make sure it’s hugely loss making.

[skinny] 06/3/2024 10:09

Mcunliffe - credit where its due - it was actually Spud not me.

[jonnybig] 06/3/2024 10:09

Good call, thebutler. Maybe lgen are waiting to see how the share price will react and announce a buyback retrospectively? You never know! Fingers crossed!

[mcunliffe1] 06/3/2024 10:06

And how the heck do you organise and implement a BB in the space of two hours thebutler?

Your suggestion of a missed opportunity is ludicrous along with your 20/20 hindsight.

Spud nailed it with the reference to your pinned comment on the Abrdn thread. EDIT: It WAS Spud and not Skinny as I first posted - thanks Sminny.

I remember when we had a vote on Buy Backs. It was a resounding vote AGAINST them.

Perhaps ASHTEAD GROUP could organise a BB as their stock tanked earlier today on bad results from their main business (Sunbelt) in the USA. Give them a call :-)

[skinny] 06/3/2024 10:04

Orchestralis - there's a financial calendar link in the header.

[thebutler] 06/3/2024 10:00

Nice recovery, just as I predicted after the early weak sellers. Looking to be positive by close of play. With a buyback this would be over 250p. Missed opportunity. Shame.