Saga Share Price (SAGA)

Bilzo……..Clown you say, it actually fell to 99p on Wednesday but only on the sells. Hopefully you picked some up at your magical £. I missed the boat slightly and topped up at 102p but long term very happy with that.

All very good points Alnwick. I topped up another £10K on Wednesday and expect good returns along with all my other travel stocks over the next 2 years. Now holding over £140k between this, CCL, IAG, EZJ, TUI and JET2 . Despite a so called recession most are doing very nicely thankyou.

Great post Alnwick. I started investing in Saga at about the same time as you and then kept topping up for years. I sold many other good shares to buy these as I always believed the recovery was coming. I was up by a fortune when the sp reached 456 but I am now down by a fortune. I hope you are right that this turning around.

I Believe the Saga Ship is finally turning Starboard !

As I've said a number of times on this site I have been a shareholder in SAGA since June 2019.

I initially bought in when the shares tanked after Lance Batchelor issued a profits warning !

The investment case appeared to be solid as SAGA had a very profitable insurance business making 100M+Net Profit ,

New Cruise Ships arriving soon and a 8,500,000 Database of "Grey Tops!" who have most of the UK's wealth.

SAGA share price on 20th June 2019 was 452p !

Well that solid investment case didn't consider;

1. A Pandemic which started in China in late 2019 arriving in the UK early 2020 and BOJO locking down the whole country on 23rd March 2020.

2. Interest rates starting to rise in December 2021 and rising 500% !

3. Russia invading Ukraine in February 2022

4. Inflation hitting 11%

5. Second Hand Cars and Car Parts rocketing in value.

SAGA's business was crippled !

To make matters even worse SAGA had appointed a new CEO Euan Sutherland who proved to be a liability.

I believe the only good thing he did was bring back RDH as a major investor and Chairman as part of a 15-1 share split and rights issue that effectively saved the Company.

The last 5 years has been wealth destruction for most of SAGA's shareholders.

I have been buying the substantial dips and actually broke into profit in June 2021 ( No I didn't sell !)

I continued to buy the substantial dips as Covid ended and War broke out and inflation raged.

I actually bought more yesterday... Why you ask ?

SAGA have a new CEO who is already making positive changes to the businesses.

The Cruise and River Cruise business have just posted Good profits and 2024/25 bookings are very good.

Travel is finally making a profit and the new tours and packages are selling well.

The Motor Insurance market is slowly returning to normality and we will see more A&M activity which should result in the disposal of SAGA Motor Insurance.

SAGA are generating CASH. 74.5M was paid off debt last year.

Cash at Jan 31st was 169.8M with an undrawn RCF of 50M and an undrawn 85M facility from RDH

The 150M bond will be repaid in May.

Current trading and revised forecasts suggest the company will generate 85M+ Free cash flow in 2024

The Debt is now manageable and interest rates will start to fall later this year.

The Tide is finally turning !!!!!

Best Wishes

I saw it to seel Billzo, I was waiting also. Had some at 103 in the end....

Aspers.

Maybe tell us your thoughts on the remaining value of goodwill on the balance sheet against insurance. Bearing in mind insurances current position. DO you think its justified and do you see it being reduced further again next time around...

Or just carry on the cheap insults if you prefer obvs....