Resolution Share Discussion Threads

[sawadee3] 18/10/2012 11:33

Strong today chaps. Happy days :-)

[skinny] 16/10/2012 16:05

Resolution Limited (the "Company") confirms that its operating business Friends Life is in discussions on the possible sale of its 30 per cent stake in AmLife Insurance Berhad and AmFamily Takaful Berhad back to its joint venture partner, AmBank Group of Malaysia. The Company will update the market in due course.

[sawadee3] 16/10/2012 08:47

Bought these last Wed when the market dipped it below £2.12 so quite happy.

[scburbs] 08/10/2012 09:01

Good to see that shareholders are active before a crazy internalisation price is set (given performance fee is so far out of the money).

"However, leading institutional shareholders have questioned how Resolution will unwind its structure, given the company has indicated it would be subject to a "commercial negotiation".

"We're starting from the position that there must not be a payment," said one top 20 shareholder. "We hear that there are alternative views [from the company]. It's being resisted by shareholders."

...

Trevor Moss, insurance specialist salesman at Berenberg Bank, said: "If the ROL team want to retain a shred of respectability, they ought to step away from a final 'pay-off'. We shall see how this evolves, but it might get messy.""

[hyden] 19/9/2012 17:39

Agreed, Ch1ck. We really don't want to see RSL form a tripple top. I maintain the momentum is there to breakout. :-)

[cwa1] 19/9/2012 10:19

Looking forward to that as I have a decent holding here now and like the look of prospects at RSL IF the financial world can avoid another peek over the precipice of oblivion....

[ch1ck] 19/9/2012 09:39

I believe the next push will take up throught 235 and finally breake the trend

[aleman] 13/9/2012 16:21

That's when I first bought in. I've been waiting for another share to go ex-dividend yesterday to top up. (I prefer the smaller capital gain and higher dividend income for tax purposes.)

[cwa1] 13/9/2012 16:05

Hello again Aleman

That very factor(underperformance relative to peers), and the recent reassuring results was what led me to topping up just before XD day.

[hyden] 13/9/2012 15:59

That looks like a serious amount of catching up to do, and which should see us over 300p. No reason for the discount imo, not now they have reassured the market.

[aleman] 13/9/2012 15:45

Just to demonstrate my comments, here is a chart of RSL versus FTSE100, life and non-life insurers indices. You can see that insurers have been outperforming the market this year while RSL lingers on a high yield that is getting to be a rarity as income hunters increasingly chase them down as Europe looks slightly less likely to implode.

[aleman] 13/9/2012 12:07

I've topped up a little. These have been left behind as some other insurers have had a good run since June, not that any of them look expensive.

[hyden] 13/9/2012 11:28

Chart certainly looks very encouraging. I'm keen to see it breakout above 230 though before getting excited. :-)

[skinny] 13/9/2012 10:38

Fairly good run since going EX dividend and a couple of gaps to be filled.

[aleman] 12/9/2012 15:25

RSL seem to be lagging a bit. Since the June lows, the FTSE general isurers index is up 17.5% and the life insurers index is up a remarkable 28.4%.

[ch1ck] 12/9/2012 09:12

Hyden I concur and added 5000 shares last week the div alone makes it worth it.

[hyden] 10/9/2012 16:36

Very interesting double bottom forming. A breakout at c. 230 would imply a near term target of c. 260p. And this is certainly backed up by fundamentals. I topped up on Friday so I hope I'm right. ;-)

[skinny] 10/9/2012 12:15

Abbey National Treasury Services Plc > 3%

[hugepants] 04/9/2012 09:06

ex-divi tomorrow?

[adrian turner] 16/8/2012 21:03

Thanks Hyden for your analysis. I have come back in at £2.27(a decision taken before I read your last two posts.)

[hyden] 16/8/2012 13:27

Just been through the numbers, definately agree with Scurbs - this share is heading towards 300p. As of last night the Mkt Cap was £3.2b whereas MCEV is £5.94b, a discount of some 46%. Admittedly, one cannot expect the share trade at, or even close to MCEV in these markets but, with a lot of the uncertainty removed, I do think that the discount will narrow to somewhere nearer 30%, implying a target price of 313p.

For what its worth, Resolution 1 sold out to Hugh Osmond for c. 120% of MCEV back in May 2008. Obviously circumstances are very different now but I'm just using this to illustrate the extent of the current discount which is entirely unwarranted imho.

[hyden] 16/8/2012 10:18

I rather favour yesterday's results gave a lot of certainty to the future. The UK Life project is all but complete save for the change in structure to allow Friends Life to operate as 'normal' Life Co (possibly via an IPO towards the back end of 2013, maybe early 2014?). RSL will remain as a supportive shareholder and will continue to look for opportunities in Western Europe. Two such projects are ongoing and the results include a final £3.9m provision for project costs. All looks good to me and it seems that the market agrees.

[adrian turner] 15/8/2012 20:30

My stop loss (£2.06) tripped when the shares fell massively on the announcement of the abandonment of share buy back. So I'm feeling a bit sick at the moment. But I am also reluctant to buy again, despite the dividend. This remains a rudderless ship. The negative ratings reflect the failure of the consolidation project and uncertainty about the future, especially regarding financial markets and regulation. Cowdrey has this time failed his backers (but not done badly for himself).