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trekmadone; feel your spot on with your comment to Cheap, on both divi and risk/reward ratings....
Thank you I appreciate the posts & replies
Cheap
Hi Cheap,
I don’t think the divi will be cut either. I added more on the drop. My point was the markets view.
Re LGEN, completely different book as is PHNX.
MNG riskier of the 3 hence the yield.
If when markets recover MNG will be the biggest winner followed by PHNX imo.
Usual caveats
Trek
Buy back would be the first cut not divi.
Imo only
Trek I don’t think divi will be cut - I would like to think but back goes first. Too much confidence in the business by the management to issue buy back- hence hard to see a cut. Anyway that’s what I hope because I’ve bought today in 190p.
Lgen would be a good buy now as they issued upbeat statement with a low share price.
I’m seeing that the market here disagrees with management about how well the business is doing. Who will prove right?
Hi Trek - do you think there is any read through from the Lgen trading statement today ? Maybe m&g also doing well or is there no read through?
Broker targets are seldom reached. They usually ramp their own book long or short!
Usual caveats
Trek
How strange, JPM reiterated 250p today.
Recessionary woes driven by Putin winding in the gas and rate rises to combat inflation. Although I don’t see how rising rates will ameliorate supply side constraints that’s where we are.
M&G whist it doesn’t have much exposure to Russia or China is invested in European Equities and fixed income bonds (slide 45)
Whilst it can pay pensions from bond interest a big part of its book is retail via Pru. If they see redemptions due to falling stock markets then that hits M&G’s bottom line.
They do have excellent solvency 2 ratio at 218% so they can cover redemptions but that doesn’t address income loss via fees and reductions in AUM.
They also have real estate exposure which is very sensitive to rates.
These sort of insurance companies are tied to markets similar to banks.
Whilst it’s early days still the market is pricing in a divi cut. My view is the share buy back was premature. That said it’s probably just as well to ramp it up now.
Also from a TA perspective there is good support at 150p but let’s hope it doesnt go there!
I may sell and try and get back cheaper again. I have been balancing my pf towards gas/cash and gold.
However, I think the August divi’s will be delivered for the likes of PHNX, LGEN, DLG, MNG etc which means if you can catch the bottom and the market recovers you could be bagging a huge interim and still be in the blue with the stock.
Make of that what you will!
Usual caveats
Trek
https://www.mandgplc.com/~/media/Files/M/MandG-Plc/documents/investors/results-reports-and-presentations/2021/mg-plc-fy21-results-presentation.pdf
goalie1 can you explain that metaphor; "release the recession kraken" for the uninitiated - such as myself! Also does "juicy" mean 'sweet ' or blood in the streets? I will lap up any positive news! So if it's negative, please do not reply!! :)
There's an article on the apple app by money week in which they are basically saying that the 10% yield is because there is little prospect of any growth due to one half of the business being outmanoeuvred by robots apps and the other have drawing it's income from legacy operations.
That said the whole of the market looks to be down with the probability of a recession seriously being priced in now.
Ive been keeping tabs on the US situation and the FED is under pressure to release the recession "kraken" so next couple of weeks are going to be juicy!
Yes it's a mad mad world. Only saving grace for me with M&G as I bought in the pandemic chaos at 133p to just hoping it doesn't go that low again but who knows.
Citigroup cuts M&G price target to 191 (212) pence - 'neutral'
Its not just here its across the board. PHNX, DLG, LGEN, etc etc. All took another kicking ???????
It doesn't make any sense to me. The only news I'm reading is about a nationwide rail strike and protestors. How this knocks 4% from the share price of top stocks like MNG is beyond me. Global meltdown. Crazy world we live in
Almost vertical drop from open today! Can't see any new bad news.
Yep, truly nuts. how this can be 225p just a few months ago. Nothing really changes and now its 187.5p
Not complaining unless you are a trader and bought at the high. I am happy to hold this for income.
Just increased my holding at £1.879.
Brought my average including costs down to £1.9938.
Took the opportunity to get my av down, sold at 205 and back in today at the bell.
CFO only buys for one reason.
Usual caveats
Trek
Think the CFO alone has bought about 176,000 of these babies in the last 2 weeks...that's no sweety money she's using. Gotta be a good sign if she's that confident.
Directors buying.
Mini spike up in the share price at the end of the day.
Interesting to see if a large buy order was filled.