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@Billzo my second tranche of shares was @20p but that was still with a view to holding for 7+ years. If they are in a SIPP or ISA, perhaps they could stay there ? I actually got them for their (very) future dividende potential with a low buy in point.
I am not sure what you are expecting from a strategy (in my mind, I am writing cruises off completely) but I think the brand has a following with the silver surfers and I don't see why that would change ? If anything, they could really rinse it with their special care and knowledge of their customer base ?
Fingers crossed !
It's really difficult to predict the future so the short term tends to carry bigger weight than the long term.
I think at the moment for many companies it is not about growth and expansion it is purely about survival.
My view is that this share issue will help the company survive and get come out the other side of this crisis. I don't expect any dividends for 3 maybe 4 years. So in that sense it is a bottom draw share. But if it can survive then there will be other players who will not. At that point Saga can then start to grow.
One of the benefits is the market Saga serves, the unemployment that is coming is less likely to hit the target audience and their income.
Any vaccine to get cruises up and running will help this share turn around quicker. But if Saga is still here in say 1 years time I think a SP of 22p (in old money) is not out of reach or £3.30 (in new money).
One thing that has occurred to me is will people need to review any trading limits they have set in place. For example if you have a standing sell at 30p then come consolidation that 30p will be passed. Will that lead to an automatic sell? Or will brokers adjust any autotrades?
Just a thought, I've turned mine off just incase.
@tame, my b/e is 20p. To be honest I don’t think the senior management at saga are capable of returning the business around to achieve numbers much greater than my b/e anyway. I’ve seen too many updates talking about doing the same thing over and over. There’s no new strategy, millions have been invested in doing the same things year after year. It’s sad as I want saga to succeed but poor management will be the death of this business in a couple of years
@Billzo - if you can hold long, then things will improve. Whats your b/e price in todays market (feel free to ignore that one!)
@tame fair play mate, I was looking to hold long term too but will be happy to get out at break even now
Their insurance business will make £140m this year (£70m H1 2020). But the market still thinks this is going to zero. They should have sold at 33p.
@Bilzo depends how long you are looking to hold for. These are in my SIPP so ten years plus so I've applied for my full allocation.
And yes, I do think Saga will get through this - it will by bumpy tho !
Thanks guys, wasn't aware of that.
I have a SIPP and ISA with HL, but no info on there regarding this offer.
Probably because I have no saga holding with them, I'm invested through another platform where they clearly state "there's no excess application facility on this offer."
Be lucky if it stays above the placing price anyway so not sure there will be a lot of people asking for more shares at 12p.
@The Far End
As part of the corporate action, I can apply for additional shares, the volume being limited to my current holding (if that makes sense !).
No certainties that I will actually get said extra shares.
Thefarend: I'm with HL and there was an ability to apply for more shares, but it was not guaranteed. There were 3 options
Take up your basic allocation
Take up more than you basic allocation
Take up less than your basic allocation
The 4th option was do nothing and your basic allocation would be returned to the pile for others to pick up.
I have to agree Jed, the share offer has provided this SP some shelter today. Still moving around the margins of 12.5p and 13.5p
"You can also apply for additional shares which you may or may get a scaled proportion of if there is high demand."
jointhedots, It's my understanding that there's no excess application facility on this offer.
Where did you read this?
With all the carnage this morning I see the SP is desperately trying to stay above the offer price.
Whatever your entitlement you need to accept them or do nothing, if you do nothing someone else will get them.
You can also apply for additional shares which you may or may get a scaled proportion of if there is high demand.
The date by which you need to act depends on you broker as they will have a cut off date of their own in order to put all their instructions together.
You need to check what your broker says - if you don't want then fine but in your own interests don't miss out be default.
I think most of the tail swallowing and throwing in the towel is now over - if the price stays a decent level above 12p then taking them up should be a no brainer that's probably why there appears to have been such an effort to push the SP down..
Ive already accepted my allocation in the thought I would average down before the consolidation. Seeing as I'm currently 17.01pps. I won't be throwing anymore money at this. Was hoping to get out with a minimum loss which I appreciate my situation isn't as bad as some.
If only we could get this sp to 27pps where it should be. Dreaming I know.
Again I say it. Saga's BOD's should wait untill the world not just our country is in a better economic condition before consolidation imho. Or at the lest both ships are sailing!!
Rant over. Good luck all.
You still have a few days to decide, if the current sp goes to say 15p-16p and you have already had confirmation of your new shares you could sell the same amount from your current shares and then buy in the new ones. I haven't yet decided what to do and still trying to decide if it's not just more good money after bad.