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Another crap day can’t even hold onto £10. Anymore. There is no real investment case for the pru an income stock it is not the dividend is derisory. And as for a growth stock for the past three years down on every metric. The poor Asian investors who brought at £13.50. In the rights issue have lost. Thirty per cent in eight months
Amazed HKSE has not taken fright at the sabre rattling by China over Taiwan. ….although maybe the new patriotic thing is to buy when China feels threatened.
SP been quite dormant for quite some time with as you say seems difficult for it to hold on too the £10-£10.50 Range So views please on the following . Over a year ago I posted that Once the Split from Jackson had settled, would Pru become a target for itself to be taken over. Is the time right now for Chinese Bank Ping An to capture more of the Asian Market ?????
Ping an seems to want HSBC to do what Pru did to itself…..presumably a PRC attempt to bring the Bank under Chinese control.
Why would Ping An / PRC want to buy Pru? Easier to starve Pru from deals and exclude from China through licensing.
do you think pru is a sell these days, jatw?
To leave a false cloak of normality for Asian investors who normally would not trust anything run by China (maybe)???
About 6yrs ago I was looking to invest in a Petrol Lawnmower, I certainly tried to avoid any inferior Brands. In my haste I chose a Mountfield as the brand was I thought Historically reliable. However after several months I had problems as the head gasket leaked and the head bolts had not been tightened at the factory. On speaking to a lawnmower repair agent , I was told , what do you expect the Chinese took over Mountfield some years ago and they have been crap ever since.
Off topic but for small mowers you can't beat a Honda IZZY petrol mower. The bases can rust but the engines go on for years, our one I replaced the rusted base with a new one and kept the old engine on it as it worked out a lot cheaper than a new mower. MTD was great back in the 80's 90's but like a most stuff now is all far East made (China) and is not the same quality. A lot of this is the companies wanting to increase profits and reduce costs, because people want cheaper goods.
Pru results this week? This is one of my bottom drawer holdings nowadays and don't follow as closely as I should.
The halfyear results will take a half year to read ! At a quick glance they dont look good to me!
I only read the business review RNS as the others I can't make head nor tail of tbh. Results not great, but not disastrous either. I like the bit about reducing costs by $70M by 2023 that should help the bottom line. Still very much a work in progress following divestments of established and profitable businesses in Jackson and M&G, with headwinds of China oppression in HK and draconian Covid rules lingering.
Spikeyj, my opinion of Pru at present is that it is still a strong business generating significant sales with new business profits but I think it does need to answer some existential questions. Pru grew its Asian businesses under gloabalisation and an environment that encouraged engagement with China. Pru probably still has a largely western shareholder base.
What is Pru for? It’s sales indicate there is a need for insurance health and investment products so there is an economic rationale. I am wholly bought into the view that it can continue to grow at 12-15% pa in line with its markets.
Who should own Pru? There should be a transition towards Asian ownership. Pru needs to be seen as the Asia business it is.
Who should manage Pru? Probably not western managers….so the appointment of an Asian CEO is to be welcomed.
How China centric should Pru be? China dwarfs the other businesses so it naturally become dominant within Pru.
These questions are medium to long term issues that will play out over quite a long timeframe and possibly drag on the share price as westerners sell and Asians buy into Pru.
The demographics and economies of Asia means that in the long term Pru could be higher valued than currently (weighing machine beats the voting machine as Buffett would say). If you are a long term holder and believe the Asia growth story then hold or add.
If you are concerned about western disengagement from China including disinvestment from the region then get out in case it becomes forced.
What do you think?
thanks jatw, always interested in your thoughtful and informed views.
i am not adding, but nor have i reduced. currently, i am still persuaded by
the demographic arguments which i think are powerful l/term… i think i do
want, & need, a decent % of my portfolio invested in the china [including their
many client states inc. vietnam] as a huge market & emerging [upper]middle
class investors who will want and need the kind of products and services
prudential is actually quite good at structuring and selling. i do have a
reasonably strong stomach for the inevitable zigs and zags of investing in
this volatile crucible, and i remain optimistic m/l term on pru. but i try to
watch carefully as i think if they mis-step & p*** off winnie-t-p & his mates,
there might not be a way back from that, so a nimble exit would be needed.
longer term, pru can’t serve two masters and its future lies in east.
atb.
[i think PRC will be a *very* unforgiving environment for political missteps by
large international companies for many years to come …not for the squeamish!]
Pru may not be considered too large by PRC and it will gradually be owned by HK and other Asian funds. It has arguably done the hard work separating its Asian and African arms from US and European businesses….it now needs to transition its financing to the east and appoint local senior management and directors…Pru is a decade behind AIA in being a non Chinese Asian insurer with a western heritage, but they are both facing the same geopolitical issues at present. Watch what AIA does…..and maybe there should be a rebrand to create an Asian identity.
..I think the pace of change in its shareholder base will surprise us