Prudential Share Discussion Threads

[tradejunkie2] 20/10/2018 23:34

Going to get very close to 52p towards the end of the year. Drip drip like a slow leak.

[essentialinvestor] 18/10/2018 15:44

If emerging markets were to continue their recent sell off, there might be a nice opportunity to add some PRU lower down, ahead of the demerger. May not happen.

[chasbas] 18/10/2018 09:03

Thanks for comment, churchill. By the way, Aviva and L&G share prices are also underperforming, particularly Aviva for well known reasons. Nevertheless, Prudential has its restructuring next year to look forward to, plus continued strong growth in Asia. What a company Pru would have been if its management had been allowed to acquire AIA some years ago...shareholders lacked balls at the time to create a true global champion with a UK listing.

[churchill2] 17/10/2018 15:06

Lack of confidence. If you are confident in the future whether you are Chinese, British or American you make decisions to buy a life insurance contract,annuity or unit trust. At the moment we have trade wars, Brexit, money coming out of drooping share prices etc. so its not hard to see why the odds ate stacked against a company like the Pru. The share price being so weak suggests the worst is not over reflected in Wall Street up 600 points yesterday had little or no effect here today. Do not despair though Prudential are financially strong with good management that should see us through this difficult period.

[chasbas] 16/10/2018 20:14

Share price down 14% over 1 year! Why so weak?

[essentialinvestor] 16/10/2018 12:56

Added a small amount.

[churchill2] 21/9/2018 09:42

Hi shieldbug You have made some very good points. I must admit the recovery in the last few days has been exceptional but we were as topvest pointed out heavily oversold. As usual lots of things to worry about from an investment point of view but at least we can enjoy this weekend.

[shieldbug] 21/9/2018 08:41

Churchhill2 - I too have been buying in the last weeks. My interpretation was that anything to do with China and SE Asia has been dragged down unreasonably. Prudential provides products that mitigate uncertainty - so the trade war may even be good in a perverse way. My supporting reason for buying is the demerger. My question though is - does it matter what values they assign to the two parts - the market should pretty quickly sort that out afterwards?

[churchill2] 20/9/2018 20:27

Great timing topvest. Will be interesting to see what values are attributed to the two arms of the business. Obviously it will depend on market conditions but in excess of £50 billion is not beyond the realms of possibility.

[topvest] 17/9/2018 10:39

I've bought in today. The demerger should create two more focused groups. I know we are fairly late cycle, but the shares are fairly cheap for such a high quality business.

[its the oxman] 07/9/2018 09:27

May have to wait for the split for real value to emerge. Looks a very attractive time to buy if your willing to be patient.

[rimau1] 06/9/2018 17:47

I agree itO. You split your business in two and you fall prey, look at WTB. The Chinese will swallow the fat growing Asia business at a significant all cash offer and the European business will be merged with a similar sized business, probably all paper. No brainer buy for me, should be trading north of £20 before a bid premium.

[its the oxman] 06/9/2018 10:12

Added sub 1700p - bring on the bid.

[justiceforthemany] 05/9/2018 22:02

Zak Mir predicting a takeover of Pru soon. As ever time will tell. P/E does seem low around 11.

[xtrmntr] 31/8/2018 20:42

Lloyds lacks firepower for M&G takeoverTAGS: LLOYDS | M&G | PRUDENTIALBy Jessica Tasman-Jones, 30 Aug 18EmailFacebookTwitterLinkedInPrudential’s funds arm has been touted as an attractive acquisition for LloydsFailed Scottish Widows merger behind Lloyds' £109bn exitBrexit and a lack of firepower could hinder a potential Lloyds takeover of M&G Investments as speculation surfaces that the asset management business would aid the high street bank’s strategic push into wealth management.This week, The Times speculated that Lloyds could use its excess capital to buy Prudential UK, which is due to demerge from the international business by 2020, for a price tag of £10bn to £12bn. Prudential announced it was merging its M&G and UK savings businesses in August 2017, creating a business with £332bn in assets under management.Portfolio Adviser has contacted both Lloyds Banking Group and Prudential for comment.M&G attractive alternative to traditional lendingM&G would be particularly attractive to the retail bank, the newspaper reported.It said: “The whole of the Pru UK may not be quite the right fit for Lloyds as it would come with a capital-intensive with-profits business and a large chunk of annuities sitting on its balance sheet. More enticing might be if Lloyds could find others, such as Phoenix, the specialist insurer, to take on some of those divisions, leaving it to snap up M&G.â€?The Times argued the deal would make sense for Lloyds because shares are sluggish, despite large profits and a return to dividends, because it cannot wring anymore growth out of traditional lending.Brexit hinders Lloyds’ firepowerBut JP Morgan said Lloyds does not have the firepower for the deal forecasting that it would have excess capital of around £2bn above required capital ratios at year end 2018, significantly below the price tag touted by The Times. Lloyds would have to raise capital through share issuance at a level that would significantly undervalue the group, according to an analyst note published on Wednesday.JPM stated: “Wealth and retirement solutions are a strategic focus area for Lloyds management, so the group is likely to be open minded about opportunities for growth. However, a large target such as parts of Pru UK/M&G would ultimately require a deal funded via share issuance, which we believe would rule it out from a financial accretion point of view.â€?Brexit had hit Lloyds price to earnings hindering its appetite to issue further shares, JPM noted.However, for Prudential the deal would remove the hassle of demerging and creating a separate listing for the UK business, JPM said. It would also mean cash on the table for shareholders.Last year, Mario Mazzocchi, a pensions and investment director at Lloyds’ Scottish Widows business, revealed the bank was looking to capitalise on its position as Britain’s only integrated high street bancassurer to provide wealth and retirement services to its retail customer base.Scottish Widows sold its asset management arm, Scottish Widows Investment Partnership, in 2014 to what was then Aberdeen Asset Management. The insurer is currently looking to pull investment business totaling £109bn from Aberdeen Asset Management following its merger with rival Standard Life.

[eriktherock] 09/8/2018 08:18

“The Group’s performance has again been led by Asia, contributing to an overall increase in IFRS operating profit1 of 9 per cent2, growth in underlying free surplus generation5 of 6 per cent2, and an increase in new business profit4 of 13 per cent2 despite a lower level of APE sales. “In Asia we have delivered double-digit growth across our key metrics of new business profit4, up 11 per cent2, IFRS operating profit1, up 14 per cent2, and underlying free surplus generation, also up 14 per cent2. Our growth continues to be high quality with protection new business profit4 growing by 19 per cent2, IFRS insurance margin8 up 17 per cent2 and renewal insurance premiums9 up 17 per cent2. Our Asia asset manager, Eastspring, has increased IFRS operating profit1 by 13 per cent2. Our broad-based portfolio of life insurance and asset management businesses, high-quality products and multi-channel strategy ensure that we continue to benefit from the growing customer demand in Asia for the wealth and health products and services that we provide.

[dogwalker] 08/8/2018 19:00

You've almost got what you wanted then. And the share price - up 3.67% - has taken the results well.

[churchill2] 07/8/2018 15:38

Hi westofengland Thanks for those well chosen words which captures the position so adequately. With a population of 2.7 billion people in China and India with Africa to follow there are huge opportunities for the Pru as long as management is up to the task. So far so good so lets see how tomorrow pans out.

[westofengland] 07/8/2018 15:02

Dear Churchill2, Yes, this is a great Company and hopefully we'll see tomorrow some of the progress they are achieving. I sense this is one of the best tuckaways on the stockmarket and once we see the progress in splitting the business, it will be self evident what a powerful business they are creating in Asia one of the regions where people understand the benefits of saving for the long term where the Prudential has longstanding expertise and a trusted brand.

[churchill2] 07/8/2018 09:16

Interesting day tomorrow. I am expecting some ups and downs on the major growth areas. Hopefully the proposed interim dividend will reach 16p. Up to date information on the split and whether Anne Richards will be replaced. The share price could do with a positive outlook.

[churchill2] 18/7/2018 22:19

Interesting points raised. Directors are only allowed to buy shares at certain times in the year so that they are not favoured over shareholders. Weak pound is advantageous to the Pru as results are converted re US and Asia to pound sterling. Half year results will in my opinion for whats its worth depend on growth in Asia especially China and India.Any sign of a slowdown where Pru have such high hopes will go down like a lead balloon.

[its the oxman] 18/7/2018 08:34

For a co where management expect to double eps over the next 5-7 years this could bounce strongly if results inspire. Not saying they will this time but after trending sideways for so long it feels overdue a good rally higher.

[shieldbug] 17/7/2018 17:45

Not sure but I am guessing the strong dollar and weak pound is not helping the share price? Looking forward to half year results in about 3 weeks time.

[shieldbug] 17/7/2018 17:35

Appears to be a lot of director sells since early April - and not a single buy. Last director buy was last December? Not very inspiring.

[rsharman] 17/7/2018 15:28

I agree Oxman - now that the Italy situation is more settled and also Asia the S.P. looks quite over sold.