Partnership Share Discussion Threads

[gswredland] 19/9/2013 15:37

me to stewpot

[stewpot3] 19/9/2013 09:20

Just read it simon. Wouldn't have thought it was life threatening, but explains the drop. I would probably see this as a buying opportunity if I wasn't already fully loaded. No doubt they will pay their fine and we can move on. I bought on a two year tuckaway view anyway.

[mmmmdonuts] 19/9/2013 08:42

Bad move buying into this. Hey ho

[simon gordon] 19/9/2013 08:28

Piece in the FT last night about them breaking the new code on selling their product. Google News it and you should find it.

[stewpot3] 19/9/2013 08:26

What happenened here?

[123ct] 16/9/2013 14:53

The big life assurers spend as much time protecting their existing book as they do trying to win new business. People buy annuities when their pension funds are often at their greatest value and assurers are forced to tell these people approaching retirement that they can buy an annuity elsewhere in the market.

Until they offer enhanced annuities I see a good opportunity for partnership as there is no competition from the major household named assurers. I have recently invested in these shares and expect a decent return in time,

[pas100] 14/9/2013 03:51

Partnership is a real hidden gem!It only has one major competitor in Just Retirement and the 'at retirement market' is huge especially with the 'baby boomers, reaching retirement ageThe enhanced annuity market is picking up nicely and no matter how low annuity rates are the fact is retires can't continue to defer taking an income from their pension and Pension Income Drawdown is not an option for the risk adversePartnership has formed some great distribution links and this share is massively undervalued As soon as people realise this share price will flyTime to 'fill your boots'

[exbroker] 11/9/2013 21:15

Going into the 250 Index on the close Friday 20 happy days!! Might even get my money back!!

[gorilla36] 11/9/2013 10:49

mmmmmmm - what a crock this turned out to be.

[pas100] 06/9/2013 10:36

Research shows that in the second quarter, fixed annuities experienced highest quarterly sales since 2011, according to data from Morningstar and Beacon Research.

Got to be good for Partnership!

[gswredland] 02/9/2013 18:27

Thanks GPD

[hezza123] 02/9/2013 17:07

Thanks Exbroker. :-)

[gpd2] 02/9/2013 15:59

Bank Of America Merrill Lynch

Short-term disappointment doesn't harm outlook

We retain our Buy rating and 550p price objective despite a slightly disappointing first set of post-IPO results from Partnership. Sales figures fell 5% short of expectations due to the one-off disruptive impact of RDR on the adviser market.

However, Partnership comfortably outgrew the non-standard annuity market in H1
and we believe that the company remains well-placed for long-term structural
growth. We reduce our 2013 sales volume estimates by 5% following the miss in
H1 but do not materially change our 2014/15 sales volume estimates or our IFRS
earnings expectations.

Three key take-aways
1. Debut results disappointed due to a one-off disruption in the adviser market but the longer-term growth prospects are unchanged, in our opinion. We believe that this is not a business that should be measured on quarterly sales figures. 2. Distribution deals enabled Partnership to outgrow the non-standard annuity market in H1 and should support further outperformance. 3. A pipeline of defined benefits business is building. And proof of concept deals were completed in H1.
Fundamental growth drivers still in place; Buy; PO 550p

We believe that Partnership is set for long-term structural growth and that the focus should be on this rather than quarterly sales figures. The stock is trading on 13.3x 2014E IFRS earnings and 10.9x 2015E IFRS earnings. This seems low to us for a company with a competitive advantage in a structural growth market (16% CAGR expected for the market from 2012-16). We expect Partnership to grow sales, profits and book value by 18-20% CAGR over 2012-16E. Buy.

[gpd2] 02/9/2013 15:55

Barclays - Structural growth intact

Partnership (PA) reported a disappointing set of H1 results last week. Although
sales increased 12% YoY in a down market, this was well below our expectations.
The lower than expected sales were caused by a greater than expected but temporary level of disruption due to gender neutrality and the Retail Distribution Review (RDR).

However, PA has already seen activity levels return to normal, and thus expects a significant recovery in second half sales. We view PA as one of the true growth stocks within the sector, with an attractive niche in a structural growth
market. We believe the structural growth of the annuity market is beyond doubt,
and we continue to believe PA is in a prime position to benefit. With 28% upside
potential to our revised 550p price target, we remain Overweight.

H1 earnings missed, but guidance suggests a significant half recovery: With close to 80% of earnings from current sales, the sales miss had a direct impact on earnings, and the company missed our earnings estimate by £10m. However, the company guided that it was still on track to meet full year consensus earnings expectations of ~£135m,suggesting second half earnings of ~£75m, in line with our second half estimates, as sales rebound. We are therefore only reducing our full year estimates by the H1 miss, and the forward estimates remain relatively unchanged.

Structural growth intact: We believe the structural growth in the annuity market
remains intact and unquestioned, with the structural tailwinds from the shift from defined benefit pension plans to defined contribution, coupled with an ageing population, with the baby boomers hitting their retirement ages. We believe the enhanced annuity market will grow at a multiple of the underlying annuity market given the regulatory push for competitive/open market annuity pricing.

Pullback could provide a buying opportunity: Partnership is trading on 12.9x our
revised FY14 estimates, falling to 10.2x FY2015 EPS. We view this as an attractive valuation considering we see earnings growth at a 24% CAGR over the next 6 years.

Our target price of 550p offers 28% upside, and is equivalent to 17x FY14 EPS, based on a blended valuation of residual income (531p) and dividend discount model (569p).

[exbroker] 02/9/2013 15:51

Its in the small cap and therefore the All Share already so not of interest as the intra index weight changers are not that great.
I tend to concentrate on those stocks that are either entering or exiting the All Share, more bang for your buck!

[hezza123] 01/9/2013 13:16

Might pick some of these up on Monday.

Exbroker: Have you been picking up any HTY? Looks like they might also be seeing some tracker interest shortly.

[exbroker] 29/8/2013 16:59

Dont worry we will be saved by the index trackers, they will go into the index in September

[gswredland] 29/8/2013 12:37

Agree with you guys

[gswredland] 29/8/2013 12:37

Agree with you guys

[pas100] 29/8/2013 09:29

Stewpot3 I agree

What is not to like bout the report - all debt cleared as well!

Wish I wasn't fully in - time for the Spread Bet account to make some money - convinced this reaction is nuts!

[stewpot3] 29/8/2013 09:27

I thought the statement looked pretty good, and the fall is well overdone. This will slowly rise again over the coming weeks IMO.

[funkmasterp12] 29/8/2013 09:21

I got stopped out here at 480p about a month ago but I might come back in if this drop goes further. Seems a bit of an overreaction - only negative I can see is delaying the Divi until 2014 but I think this was flagged prior to the IPO anyway.

[mmmmdonuts] 29/8/2013 09:11

A year low in response?!