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Anywhere under £2 and I'm back in.
EnglishPatient
Silly man, AI in reference to premiums not who you talk to.
As I said "More accurate premiums should result in greater profits"
SD235 - regarding your comment about the Direct Line CEO being an AI fan. Let me say I hold Admiral and when I contact their call center I strong prefer how I am connected to a person - usually with a Welsh accent - as opposed to a robot.
I might buy more at 166p!!. I think it gives me 10.5% dividend. Can't be bothered checking but it would be close
Should we see 166p then there would be a national kitchen sink shortage soon after.
Notmyjob "One has to be super skilled" they don't exist nobody can predict the bottom of the market. Buying as those below are buying is the only way.
Presently direct line is on a 7.8% but it normally pays a special dividend every year (with the obvious exception of covid) The present dividend amounted to just short of 13%
https://www.hl.co.uk/shares/shares-search-results/d/direct-line-insurance-group-plc-ordinary/dividends
The recent ruling by the Financial Conduct Authority is that they must charge loyal customers the same as new customers (on a like for like basis). In my opinion that will favour direct line with its multiple brands and economy of scale. Basically no more loss leaders.
Add to that the new CEOs love of artificial intelligence. More accurate premiums should result in greater profits.
I have a compensation payment soon....hopefully before the market rises. Five and half years is a long time to wait for compensation when the insurance company accepted fault within days of the accident.
sd 166 , that would definitely be a bargain buy lol
notmyjob that's very true mate, and i don't think you will go far wrong with 250, good reliable dividend payer
robleo "Problem is, where is the bottom going to be"
166p....or no idea!
One has to be super skilled or very lucky to pick the bottom or sell on the top. As a LTH/investor I try and see any dips as top up opportunities or entry points in new holdings.
Happy with my sub 250p top up this afternoon.
Problem is, where is the bottom going to be
"I’ve added to my holding today."
Me too. Can never resist a bargain!
Thanks for the posts above, everyone. I’ve added to my holding today. In terms of risks, some analysts are saying that high inflation and low interest rates is a negative for life-insurers as it leads to higher expenses and higher claims costs for contracts with claim payouts linked to inflation. The annual report acknowledged that LGEN retains some inflation risk and so perhaps it is this high inflation/ low interest rate issue that is behind the sector pulling back since April? On the plus side I’ve read lots of highly qualified people recommending LGEN at this price for yield and growth (yield above 7% and was growing decently before 2020 and maintained in 2020) and balancing risk/reward I take the view that LGEN is good value here.
oldbutnowisa
You are depressing me!
I am in at 267 and 166p. I want sell the latter at a new peak and then buy back in an isa at the bottom of the subsequent fall. Hopefully my crystal ball will unfog itself before the next peak.
I am in here to as LTH. I have just taken a deep breath and sold two in my LT portfolio, a loser and a winner and have a bit more coming in cash from a takeover just because everything you say is right, Bananaman, but this move on the FT now shows as a full-on Bear market. I am going to sit with 10% cash and some 40% inflation-proofed for a while. May even pick up some more LGEN for £2 or less!
I like Smithson. It is 40% tech but all smaller companies. I have 2 rules definitely no faangs including the Chinease goliaths and Tesla. When there share prices are "rebased" to something more logical they will take down the small growth companies down as well but they can recover.
And avoid China as much as possible.
Todays market looks bad for legal and general but my Smithson IT has only fallen half percent alas back below a 100%.
This market must be full of fooking idiots. I just dont get the devaluation of UK stocks. Since April its been a constant bleed out. Its disgusting that no value is given to such stocks. I will be a buyer just for the divi yields. In particular those with low (sub 10) PE's and good divi cover. LGEN, MNG, DLG, PHNX, IMB, POLY, to name a few. Surely they are starting to be ridiculous value.
Verbum sapienti sat est: Every so often the "market" which includes a quite a number of half wits decides to sell perfectly good investments for no logical reason.We now have such a time set before us.
Some good points Vlad but surely the market is still a bit anxious about the post Brexit stuff around service companies such as LGEN and access to EU markets plus the fact that this element was all but ignored in all the toy throwing and face offs leading up to the final withdrawal settlement? Haven't heard much about services from HMG over the past 12- 15 months much else tends to be subsumed by COVID agendas.
Hello Craig30
I have never posted here before. But I have been holding here for about a year, and I am knew to investing. So maybe more informed members here.
However for what it is worth, I did look back. Since 2014 the SP has very rarely drifted south of the £2.30 mark - and it was on obvious points like Brexit etc. Fundamentally this business weathered Covid well. It has recovered nicely, and is sitting back at it old rough levels.
I personally cannot see this drifting or falling off drastically - maybe a few pence here or there. But that's in my opinion. I bought this as a safe asset to have and will keep holding it. As Vladamar has shown, it has room and scope for being very profitable.
Obviously when ever you choose to join us up to you. But do your own research and jump in. And good luck!
Is the sp slowly going to go down do you think ?.I want to start slowly investing in legal gen.
Hi, very informative piece, what’s your view on Aviva??
My LGEN holding is now slightly over £500k. As background I am now 56, so officially retired, although I have retired due to investing and had left full time work 9 years ago. My total investing gains are about £1.6M since 2009, although, although due to tax, spending and a house investment by current investments are a smaller 7 fig sum. Average annual compounding gains of c26% for my SIPP since May 2009, as verified by the Telegraph, c17x up since then.
Although I am well ahead of the likes of Fundsmith and SMT over the long term, they are well ahead of me over the past 5 years. As they have chased the tech/new economy to ever more unsustainable valuations, while I have stuck with under priced high quality UK facing businesses in the currently out of favour sectors.
And that includes the mighty LGEN. LGEN's tangible shareholder surplus - dividend added to the average medium growth in tangible shareholder funds, the sum expressed as a percentage of current market cap - is comfortably over 10% for LGEN now, indicating that LGEN is now selling for about half a fair price. Compare that with the tangible shareholder surplus for the average Fundsmith or SMT holding, which is typically 1% to 2%. Suggesting that their holdings will more than half in price over time.
LGEN has sold very cheaply before, i.e. back in 2009, look what happened to LGEN's share price between 2009 and 2014. I am not suggesting that kind of price move will occur this time, but certainly a major re-rating for LGEN is now long overdue.
The size of the dividend, the constant build up in tangible equity, LGEN is a truly remarkable business, currently at a giveaway price.