M&g Share Discussion Threads

[jonojubb] 28/5/2021 13:24

Appreciate the comments to give me the bigger picture, always hard being patient. Been caught too many times not selling after a big spike for all the profit takers to beat me to it and back when I started at break even.. happy holding and fingers crossed for news to drive price higher.

[makinbuks] 28/5/2021 12:19

Agree with that

[anhar] 28/5/2021 12:11

At 245p and a forecast 21 divi of 18.2p, the forward yield for MNG is 7.4%.

Compare this with some leading rivals:

Schroders non voting, fdivi 115p at 2,593p, fy 4.4%
Standard Life Aberdeen, fdivi 15.1p (div just been cut from 2020) at 278p, fy 5.4%
Legal & General, fdivi 18.3p at 287p, fy 6.4% (not perhaps a close rival but it does have substantial fund managment interests).

So on a yield basis MNG is valued considerably less than these but I see no sound reasons for such undervaluation.

The only point that occurs to me is that MNG is a relative newcomer to the market with, so far, a very limited track record as an independent business. But if that explains the undervalue, though I'm not sure if it does, I don't consider it to be a reason to avoid the shares and in time that will disappear anyway.

Using yield as the valuation basis, the current market opinion of fund managers as above suggests a yield of around 6% or less for MNG. That implies a share price of at least 300p right now in my view. This view does change constantly in line with shifting valuations of both the market and the sector.

Which does not mean it will get there, the market is not rational at all in the short term.

[makinbuks] 28/5/2021 12:04

Jonjo, you'd kick yourself if there was a bid. And while you wait yield compression and positive results will drive the price moderately higher

[drdre] 28/5/2021 11:48

I think this marks a hopeful return to pre-covid levels. I am happy holding for the long term here - this was mainly a dividend play for me at £2 but was always optimistic some capital gain would also be part of the picture.

[notbitcoin] 28/5/2021 11:34

Just bought 3k worth

[notbitcoin] 28/5/2021 11:34

Still good divi

[jonojubb] 28/5/2021 10:59

Tempted to sell to be honest, up 15% since coming in, in March. So good return for the short time. Thoughts?

[aleman] 27/5/2021 15:59

These should be off to new highs soon. If you look back to when they listed, all the volume was 210-240p. There was much less between 240 and 250p. The shares have already worked their way through the heavier resistance so it will take less buying from here to move them up that last bit to blue sky. Hold tight. It like its about to get even more interesting. (And still yielding 7.5% even if they don't raise the dividend.)

[notbitcoin] 27/5/2021 15:18

250 to 280 by end of week

[notbitcoin] 27/5/2021 15:16

Big rise more take over talks

[gary1966] 24/5/2021 10:50

Rest assured I am an income investor and that is why the money went where it did. But one has quite deservedly had a good run lately but the RSI is quite elevated and the other has been hit unfairly in my opinion and the RSI crashed and so that is why I made the switch. Rest assured I am a buyer in waiting though as I think longer term M&G should be higher.

GLA

[spcecks] 24/5/2021 10:42

anhar agree I’m also an income investor and will be holding for the dividend.

[anhar] 24/5/2021 09:36

I think MNG remains very undervalued and will not be realising any profits at this stage, far too soon in my view. On yield alone, 7.6% at 238p, it is much lower rated than rivals for no good reason that I can see. And as an income investor, I'll hang on anyway for the dividends until the yield falls to around the market level, if it ever does.

[woodhawk] 21/5/2021 13:15

Agreed, Gary1966, I've taken some profits off the table here too. Hopefully, I shall be back...

[gary1966] 21/5/2021 12:56

With the RSI quite elevated and the fall in another favourite (DEC) of mine this morning I have sold at 238.5p and re-invested obviously in DEC. Nailed on there will be a bid announcement here on Monday. :-) Definitely want to return here if the trade works out.

GLA

[whatja] 17/5/2021 14:48

MNG still an attractive target for the right consortium as breaking it up is difficult without asset management, wealth management and heritage insurance management.

SDR and LLOY is but one combination.
LGEN and PHNX another
Aviva on its own.

I think MNG will be first out of the blocks with M&A of its own.
QLT to tie up a large slug of UK distribution
ASHM to expand asset management into emerging markets
Sell the annuity book to pay for it.

[williamcooper104] 17/5/2021 13:40

I thought that too - it's clear that M&G is not exactly expensive but when it was cheaper all of the likely bidders looked at it and thought it was too much grief buying to break it up Thus the likelihood of a bid is less (still of course possible)

[woodhawk] 17/5/2021 13:09

That's possible too. In any event, M&G looks highly undervalued to me & currently yielding a great divi too. I've been getting a great return off this over the last 18 months.

[fenners66] 17/5/2021 12:48

Alternatively they see more value than they can afford , especially if they get wind they may end up in a bidding war , thus they give in instead of wasting management time?

[woodhawk] 17/5/2021 11:36

Because they saw value there - so may others. Doh!

[makinbuks] 17/5/2021 11:05

Ridiculous logic isn't it. Someone admits they thought about buying it, took a closer look and decided against it and that makes the share price rise!

[garycook] 15/5/2021 03:27

Woody,Ditto.Seems quite a few looking at MNG,by this Times article. in M&G rose 9¼p, or 4.2 per cent, to 229¼p after Bloomberg reported that Schroders had spent months exploring a tie-up to create an enlarged asset manager with more than $1 trillion of assets under management.

Schroders walked away after deciding that it did not meet its risk and return requirements, but M&G may be a target for other buyers, analysts said.

Among those could be Phoenix, which has a track record of successfully buying businesses and making savings and has been diversifying from closed books of business into other areas.

Other interested parties could include Rothesay and Pension Insurance Corporation, both pensions specialists similar to Phoenix. Standard Life Aberdeen, which is rebranding as Abrdn, was also named by analysts...

... Phoenix’s new chief executive, Andy Briggs, has also said that he is interested in deals. Briggs completed a deal with Abrdn in February to buy the Standard Life brand, in a culmination of a series of previous deals under which Standard Life’s insurance business was sold to Phoenix and the two entered into an asset management partnership.

The ties between the two include an agreement for Abrdn to manage about £147 billion of assets for Phoenix until “at least” 2031. That agreement may mean that Phoenix would only want M&G’s insurance arm and not its asset management business...

The asset manager M&G appeared to be in play as a takeover target with a price tag above £7 billion yesterday, after revelations that its rival Schroders had considered making an offer.

[woodhawk] 14/5/2021 16:48

Best day I've had in a while - all my stocks well up today.