Saga Share Discussion Threads

[boraki] 14/5/2019 10:04

Thanks Justice.

This is the RNS in full.

("Saga" or "the Group")

Spirit of Discovery sea trials and fixed price insurance advertising launch

Saga plc ("Saga" or "the Group"), the UK's specialist in products and services for life after 50, today updates on two key developments from both its Travel and Insurance divisions.

Spirit of Discovery sea trials

Following its rapid build over the past year, Saga's first ever purpose-built cruise ship, Spirit of Discovery, floated out from the Building Hall at Meyer Werft Shipyard in Papenburg Germany on Sunday morning. She will undergo further trials in readiness for going to sea in early June.

Spirit of Discovery will sail with a maximum 999 guests and 523 crew around the world, British registered and proudly flying the Red Ensign. She will arrive in Dover on 28 June and will be officially named on 5 July, undertaking her maiden voyage on 10 July.

Spirit of Discovery is the first of two new ships being built to increase Saga's capacity in Cruise. The second new ship, Spirit of Adventure, is due to be delivered in summer 2020. Each ship is expected to deliver c.GBP40m EBITDA per annum.

Launch of advertising campaign for three-year fixed price insurance

While our new three-year fixed price insurance product has only been on offer for five weeks, we have seen a positive reception with around half of our direct new business customers choosing the new offering. To build awareness of this new product, we have launched an advertising campaign centred on the theme of 'time shouldn't change a thing'.

The fixed price offer is part of Saga's new Insurance approach which is focused on growing direct channels and rewarding customer loyalty.

Lance Batchelor, Group Chief Executive Officer, said:

" We have seen two key milestones for the Saga business over the last few days.

" The float out of our new cruise ship, Spirit of Discovery, is a key event in our history and follows a rapid build process which was delivered on time and on budget. Combined with our second ship, which will launch next year, this will be transformational for the future profit trajectory of our Travel business.

"In Insurance, the initial reception to our fixed price offering and renewed focus on rewarding customer loyalty has been pleasing and we look forward to the continued rollout of our new advertising campaign."

END

Saga plc

[justiceforthemany] 14/5/2019 09:01

RNS - New insurance package doing well.
£40M EBITDA from each ship roughly double current profit?

[boraki] 13/5/2019 14:10

52.30p new low

[boraki] 12/5/2019 09:47

Jools Holland on 3 cruises

[boraki] 10/5/2019 20:56

Thanks Justice.

I will hope for the best and cross my fingers /toes, other stuff

[justiceforthemany] 10/5/2019 19:00

Ex-Dividend - Thursday 16th May
19th June AGM and Trading Update
June/July - new ship launch


boraki I feel for you and know exactly what you mean.
It appears some shares are allowed to trade at ridiculous multiples and P/E's of 80-100+ albeit even if the growth is as little as 1-2% while others like Saga are now on a P/E of SIX and Centrica ('defensive utility') P/E of 9. IAG P/E <5, ITV<8, SBRY<10.

It appears the market makers nowadays completely disregard the P/E no matter how ridiculous it may drop to. A P/E of 10 used to be the benchmark and was regarded as 'too low', providing a support of sorts.

Same has happened with the NAV/book price. Saga and Sainsburys as examples are now at almost half their book price.

Perhaps surprising no one has put in a bid given Saga is a well known and 'trusted' brand with 3 million customers. Now trading at just 25% of what they were 2 years ago. Pocket change for someone like Allianz or Aviva.

Have you and others contacted the person most responsible for this mess?
(E-mail) [e-mail]

[humphries1] 10/5/2019 16:26

i sold out a fair while ago now glad i did, just keep an eye on OPTI code for OPTIBIOTIX its going to do for health what the mobile phone did for communications.
DYOR though

[andyj] 10/5/2019 16:15

Personally I think your mistake is the allocation of your portfolio to higher risk companies. We tend to think blue chips are safe, but that has dramatically changed. When sentiment goes against a sector or company, the falls can seem endless. Take a look at BT, Vodafone or Centrica, which is in a 6 year downtrend. Because of this I would put them as high risk. They are far likelier to continue falling rather than switch around to an uptrend when we buy.I approach high risk companies by thinking what is the biggest percentage of my portfolio I will allocate to this company. With SAGA it is 2.5% for me. Then I take an initial position of 0.8% and watch them, adding if I feel they have been oversold or the trend turns, until my limit of 2.5% is reached. Half of my portfolio is in low volatility funds with stable yields like NCYF, HFEL, SIR, AEWU etc. A large percentage is in growth funds and I allocate 15% to contrarian positions such as SAGA, RMG and IGG. They often slide further, but give a good yield and I can always add more. And wait.It makes for a much better nights sleep!

[boraki] 10/5/2019 15:47

Please don't tell me not too worry Ero,

Sorry, Buddy, but it will not console me at the moment

[boraki] 10/5/2019 15:44

I was wrong,,,,

now 53.55

[diku] 10/5/2019 08:07

There is me thinking the new strategy was in place when share price were trading above 180p...there is always a new strategy after the events...what happens in between?...time for a nap!...they come with all sorts of words to manipulate the mind into thinking this time we have cracked it...keep on buying time is the name of the game...





Erogenous Jones
9 May '19 - 09:05 - 1735 of 1747
0   1  0



Boraki, don't worry about it. The company has announced new strategy which has yet to translate into improvement to balance sheet/margins/new business etc and, to be frank it will not start to be evidenced for another 4 months.

[blueball] 09/5/2019 20:12

I reiterate a buy @15p.

[justiceforthemany] 09/5/2019 19:17

So allegedly no shorts (or <0.5%) yet now trading on a ludicrous forward P/E of 6.8.
Even Ex-Dividend (1p) next Thursday not halting the slide.

[boraki] 09/5/2019 13:35

Yes, I too think Jane would be excellent for Saga.

[glavey] 09/5/2019 13:22

5trelok, I'm not sure about "whatever it costs", but there's milage in the idea. Can she sell insurance though...

[boraki] 09/5/2019 13:10

New low hit again, 54.5p down 4.7%

Believe me Ero, I am worried.

Bought back in again yesterday, and already 5% down in one days ownership.

If that does not worry someone, then nothing will.

At the moment dreading this share.

:-(

[bookbroker] 09/5/2019 12:56

It’s not the holiday division, but the financial services arm, Bachelor has been here too long, and through too many negative factors, it’s like this is being stripped to the bone!

[5trelok] 09/5/2019 10:41

Saga need to get Jane McDonald in as brand ambassador - whatever it costs.

She's phenomenally popular among the very demographic they cater for. Failing that,

her BAFTA winning cruise show would be the perfect place to showcase the new ships to

an audienece of millions.




5t

[careful] 09/5/2019 09:12

0.5m shares traded today out of 1.1bn.

Best ignore prices, these are long term investments.
If the strategy works we shall prosper over the long term.
But it will take 3-5 years to find out.

In the short term the shorters are on to a nice little earner.
They borrow our shares from our nominee accounts for a small fee.
then go short and make a quick profit.
(down 4% today on light volume).

Nothing has changed for Saga over the last 2 weeks, it will take time.