Saga Share Price (SAGA)

A good point Banbury and one which has reinforced my negative view. Why don’t the directors buy in here?

Bonds trading at 83p in the £. Not distressed but reflects rising interest rares and some company risk from the share price fall.
Would be nice to see some directors share buys. They must be well under water on their incentives plan with price at rights issue levels

Magic
The £250m was used £100m paying 2024 bond, £70m term loan and £80m corporate.
They had £200m plus in the bank in Jan 22 should be more now and next liability is £150m of bond in 2024. They were confident of paying this off. No need for a rights issue.

On a side note what is important for a company is cash flow. Saga has many streams presently with Leisure Sector picking up Magazine , Car Insurance. pet insurance etc. Upon zooming out and looking at the company from all angles the insurance arm has mainly been in profit over the years. Insurance premiums picking up in 2022 and technology in car reducing driver error and the Government looking at changing Insurance Guidelines. Overall the Insurance Sector like Phoenix ,Aviva and L/G etc are upping their forecasts on growth and profit guidance. This is a good sign for Saga as well.

There seems some worry over a share issue from the AGM coming July. Recently Saga did a Bond Issue up to £250,000 Million covered 2024/26. These funds are used on the Corporate side mainly for Business. In a Historical sense a company which has done a Bond never does a share issue because the Bond will plummet which undermines Institution Investors.