Saga Share Discussion Threads

[husbod] 17/7/2019 16:16

Hmmm what's that smell? Hope it's not shorts burning. If I were ever famous enough to be on Desert Island Discs my item to take with me would be the canned smell of shorters burning.

[husbod] 17/7/2019 15:54

Only another 7p and it will be at the price of my first tranche. Praise be to the white bearded one for averaging down.

[koetser] 17/7/2019 15:38

Elliot have not wasted any time!!!!

80p soon

[koetser] 17/7/2019 15:37

Bloomberg:

Elliott Urges Saga to Explore Options Including Breakup

By
Scott Deveau
and
Jan-Henrik Foerster

‎17‎ ‎July‎ ‎2019‎ ‎12‎:206;09

Hedge fund seeks potential split of insurance, cruise units
Elliott disclosed 5.1% stake in U.K. company earlier today
Elliott Management Corp. wants Saga Plc to explore options to boost returns for shareholders, including potentially separating its insurance and cruise businesses, according to people familiar with the matter.

The New York hedge fund, run by billionaire Paul Singer, disclosed earlier Wednesday that it holds 5.1% of voting rights in the company through financial instruments. Shares extended gains and rose as much as 10% in London, the most since July 4th, after details of Elliott’s strategy emerged. Saga is valued at about 516 million pounds ($640 million).

Elliott believes the company is undervalued and that the various businesses, in particular the insurance unit, have underperformed in recent years due to mismanagement, said the people who asked not to be identified because the matter is private. The firm believes both the insurance and cruise businesses are well-regarded by consumers but don’t necessarily need to continue to operate under the same umbrella, they said.

“We have good and open relations with all of our shareholders and expect to be in contact with Elliott shortly," a representative for Saga said in an emailed statement. Elliott declined to comment.

Saga is currently looking for a new chief executive officer after Lance Batchelor said he planned to retire in January 2020. The supplier of financial services and cruises to people over 50 years of age also cut its dividend and warned in April that profit will fall this year.

Saga started out in 1951 as a seaside hotel, before venturing into foreign holidays, insurance and financial services. Prolonged uncertainty around the U.K.’s exit from the European Union has hit holiday bookings, which are down for the coming year.

Saga is trying to rebrand itself and is introducing new products in its insurance business to fend off pricing pressure.

“Sophisticated activist are stepping up pressure in the U.K. and Europe,” Darren Novak, head of activist defence at UBS Group AG, said in a separate interview today, declining to comment on Saga specifically. “Investors use companies’s stock price dislocations and strategic pivots as launch pads for campaigns."

[dr biotech] 17/7/2019 13:55

some rubbish commentary from the evening standard. I'm sure Elliot will state their intentions soon


Saga took what Yes Minister’s Sir Humphrey would call a “brave decision” in quitting the race to the bottom on insurance premiums.

The pensioners’ favourite brand paid a high price for its boldness, with a total collapse of the shares and the resignation of its chief executive.

The shares plunged so low that Saga’s equity became worth just £490 million. Given that its debt is £390 million, that clearly indicated some sort of fundraiser was needed.

So, what to make of the arrival of activist investor Elliott as a shareholder?

Will it demand the thing be broken into its parts and sold? Perhaps: the insurance and cruises operator sides of the business are subscale and have high central overheads. But Elliott likes the Saga brand; splitting it could be damaging.

Does it just think the shares are cheap and present the chance of a quick buck when they recover? Risky: Saga’s small size these days means the shares are illiquid, so selling a big stake could crash the share price even if they do recover.

Does it reckon the shares will recover if it reverses the strategy and comes up with a plan B? Difficult, given that Saga has tried numerous other options over the years.

Perhaps Elliott wants to take the business private and drive the new strategy harder with better management (it couldn’t get much worse). It’s early days yet, but signs are that punters are buying the new insurance price structure.

Earnings are better quality because customers sign up for three years of cover rather than just one, and Saga avoids commission-hungry price-comparison websites.

Whatever the plan, Elliott’s arrival means Saga’s later years will be anything but dull.

[diku] 17/7/2019 13:32

Melt up to 60p?...or takeover rumours circulating?..

[husbod] 17/7/2019 13:24

Hope they're being squeezed if they did. Reckon they'll need to rethink their strategy which will be good for the share price

[koetser] 17/7/2019 13:11

Can’t believe black rock shorted saga last week? I thought they owned around 5%

[husbod] 17/7/2019 12:29

Do Elliot's/other activist investors tend to stick around 5% as that gives them sufficient leverage for their purposes or do they go higher?

[husbod] 17/7/2019 11:48

Must have been me buying a few more!Makes you wonder how an activist investor can hoover up such a big holding without the share price rocketing, as opposed to going up gradually.

[koetser] 17/7/2019 11:38

Huge spike upwards!!!!

[rimau1] 17/7/2019 10:20

In play now, Saga will be separated into 2 inside 18 months unless sold prior to this, insurance vs travel. I benefited from Elliotts active approach at Whitbread and as others have said they are very proactive, move fast and monetise undervalued assets that have a strong brand with a short to medium term timeframe.

[grafter] 17/7/2019 09:58

hxxps://www.sharesmagazine.co.uk/news/shares/market-report-saga-sails-higher-on-activist-interest-galliford-try-gains-on-good-housing-demand

[countless] 17/7/2019 08:41

I thought the same ignoble - could be a hassle free way to travel.

[ignoble] 17/7/2019 08:30

Do wonder if the Brexit nonsense may play into Saga's hands a bit

Board the ship in the UK and return to the UK , no uncertainty about Customs Controls in Europe or other scaremongering.
You still have a holiday in the sun etc .

[pete160] 17/7/2019 08:26

Elliot are opportunist investors.
They buy a position where they see short term opportunity to restructure / sell to create /release value. They are very rarely long term holders.

and the fact that they have bought in means that other feeder fish will follow.

If nothing else it will put pressure on management to perform on a shorter term horizon (whether that is a good or bad thing for a business depends on your point of view)

[sharebuddy1] 17/7/2019 08:24

Can now see why Peel Hunt maintained a buy rating and a target price of 110p. They must have had news of the Elliot purchase.

[dr biotech] 17/7/2019 07:57

Elliot are activist investors, typically buy stakes then try to get the management to sell the companies - or split them. Its not going to be a passive investment. Doubt it will be long before we see what they want.

[edmondj] 17/7/2019 07:56

The shares will probably rise today due to the arrival of Paul Singer than an over-glorified personnel officer.

[koetser] 17/7/2019 07:34

Saw that what about this new people officer anything you can glean from that?

[edmondj] 17/7/2019 07:30

Well you most likely will have a no-deal Brexit with the EU, also Elliott Capital has now declared a 5.1% stake. Go figure.

[diku] 16/7/2019 22:47

Now that you bought in bound to go down...


Erogenous Jones16 Jul '19 - 08:41 - 2679 of 2686
0 0 0
My tiny buy this morning is showing as a sell.

[koetser] 16/7/2019 22:21

EJ
My advice is wait for a month to see if a new CEO is appointed that in itself would push the price up. But I think we need to exit all shares by September in case of no deal Brexit. Just my opinion