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Slightly surprised that only M&G are seen as potentially being re-rated. To my mind Pru business environment has changed substantially, yet they are still rated as if nothing much happened.

Thanks Valhalla, but does it really look like a serious question - I mean are the w w w and "dot uk" not obvious enough?
I'm more subtle than Cathal, but only slightly!

darn it, asterisked! why why why vox markets dot co dot uk??

Thanks DJ. Not that easy to find, but it's here if anyone's struggling:
****************************/articles/open-orphan-and-russ-mould-on-5-things-to-fear-in-2020-a681828

Ha ha yes Cathal is a hilariously full-on salesman, has all the answers. Good entertainment value.

So far Pru are up 2.32% this calender year, but plucky little M&G have leaped ahead at 2.52% and are showing signs of fightiness. Happy days, but early doors? Very much so. With amiably incompetent Boris lurching about, there could be Brexit headbutts towards the end of the year, and presidential elections in November mean this match could go all the way to the wire. Finance fans will be watching this one with baited breath, through splayed fingers, so place your bets and let's do this!

Shandy is probably right. The central idea behind Orph is that data is the new oil, so database enhancement is likely to be a major factor for Friel, but another aim is to grow quickly, because Friel sees value in sheer size too.

The market doesn't seem to like it, but this is probably the sort of thing Orph are going to be doing all year long. They are the punk rockers of neglected pharmacology. Should be a wild ride, might crash and burn.

A $50 word is mightily impressive, but it's poor value if all it does is obscure the meaning! To be fair, they did say "flow back", rather than "blowback", and they probably deal in euros?

Money certainly flowed from M&G to Pru through individuals selling off shares, but most of that would have happened in late October or early November, and the easing of that flow would merely stop the price falling, rather than justifying a re-rating.

I think they were possibly thinking more about institutions, with their sudden huge sell off in October, and probable slow re-balancing through methodical portfolio reviews. M&G will be a new entity for consideration at some such reviews, and arguably much more likely to be bought than shorted, as an attractive source of income? No doubt some institutions will have house rules about seeing a couple of sets of results before investing.

Maurice Treacy no longer being a director does seems a little surprising, isn't he one of the founders?
Presumably a compromise to get the latest deal over the line. They are moving pretty fast - relisting in just a few days.

The share placing during the reverse takeover of Venn Life Sciences by Open Orphan last year sold 80m shares at 5.6p each, however Friel set up Open Orphan long before that, back in 2017.

"14% represents about two full years (final and special already set out for 2019 in the demerger process, an interim and final for 2020 all payable before June 2021)"

But June 2021 is only 17 months away. Two FULL years would surely include either the interim dividend due in September 2021, or else the one already paid as part of the Pru in September 2019.

I agree jj, a share price in excess of £3 by the end of the year is entirely plausible, assuming no surprises. All that is necessary is confirmation of the dividend policy and a demonstration of the soundness of the business model. Both seem undemanding.

Since the split, however, we've already seen a couple of knee-jerk reactions from the market to fairly insignificant news. If the results are disappointing, SP could just as easily drop below £2.

But if all is as expected, then a progressive policy suggests a total dividend next financial year of around 18.5p.
Even if the SP did rise to £3, that would still represent a highly attractive 6.17% yield.

I think I've decoded the Deutsche analysts enigma machine, to understand why they think there will be a re-rating, and what will cause it. It turns out there is a technical term "flowback", which refers to forced selling during a cross border merger. It seems they are stretching the meaning to apply it to the demerger, even though M&G haven't crossed any borders (don't mention the war).

Presumably they are referring to the "forced" selling by foreign companies during the split, and (maybe) afterwards?
It makes a kind of sense that imbalances caused by such disruption should theoretically right themselves over time.

By my reckoning the yield is now down to 6.39% for the next expected dividend (to be declared 10 March). Presumably some or all of that value is already factored into the SP (i.e. the price will drop by a similar amount when it goes ex-div).

Trustworthy source Deutsche Bank, famed for money laundering, and being bankers to disgraced president Trump, say that M&G has a “remarkably low” rating, "with a dividend yield over the next 18 months of 14%."
They are "Expecting a re-rating driven by an “easing of the current post-demerger flow back”.

Not sure what is flowing, why it's easing, or where it's flowing back to - something to do with plumbing?

https://www.proactiveinvestors.co.uk/companies/news/910023/st-james-s-place-hit-by-deutsche-downgrade-mg-seen-as-better-value-910023.html

Very true Jatw, lot's of opportunities potentially opening up. Visiting the Edinburgh festival last August, I noticed the M&G logo plastered all over a building site, so they are not just in London. I think they are involved in the build-to-rent sector too. At least one analyst is recommending commercial property trusts as a good asset class for income and long term growth, so we might even see a reversal in the trend (for retail customers selling) by the time the suspension ends.

https://www.bbc.com/news/world-asia-china-50991815

Wang Zhimin seemed ignorant, out of touch, and casually malevolent towards the people of Hong Kong, happy to consign them to abject dictatorship against their wishes. Expect more of the same from Luo Huining, a 65 year old career communist and propagandist.

Apologies if this has been posted before. Doesn't it represent a major breakthrough for Samsung, and nullify Nanocos supposed CAD-free USP?
https://phys.org/news/2019-11-samsung-efficient-quantum-dots-heavy.html

Not sure if you mean PRU and M&G combined prices should reach £20, or just Pru, but I thought the old company should have already been worth over £20 based on earnings and prospects. For some reason the market didn't respond to my thoughts, I think it must be broken?

The whole sector has been under a cloud for some time, but Pru stand out for their robust strategy, and now that they are no longer shackled by either European regulation OR Brexit angst, they are a shiny new, supercharged, Mike-Wells-designed, Prudential 2.0 on steroids, irresistibly cheap to international investors ... in my MIND.

Correction: LEDs don't actually emit enough light at the nano scale to be usable, so the so-called "nano" LEDs are just another one of Samsung's misleading marketing coinages. In other words: ddubya was right, both are using micro LEDs at the back end.

As I understood it, TCL are using Micro LED blue source light, with a QD filter combined (mysteriously, disruptively!) with a polariser, but Samsung are calling theirs "nano" LED (hence QNED) which might imply something different, well, smaller anyway, and probably struggling desperately with the front end QD filter?

It is pretty amazing to see the Chinese not just bridging the a gap but apparently threatening to build a completely new bridge. If Nanoco are involved in any way, they have a truly remarkable gift for hiding it.

One interesting aspect of the big property sell-off is that M&G invested £875 million in 40 Leadenhall, in the City of London, just a few weeks before the suspension. This is a development site for two eco-friendly office towers, expected to make a substantial profit when completed late 2023.

This was bought via the "with profits" pension fund though, rather than the property fund: it appears to show a marked difference in attitude towards prospects for commercial property between M&G itself, and it's customers?

I was wondering what this impressive sounding Medium Term Note programme, announced just before christmas, was all about. My impression is that it is a fairly standard way for large companies to borrow money in a flexible way - the £10Bn is just a notional maximum amount allowed under the (initially) one year programme, nothing has been actually issued yet, as I understand it.

A brief skim reveals that the prospectus does contain some mildly interesting info. though:
- a brief, encouraging, market overview on page 221
- companies certain directors are associated with, on 222

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MNG/14358709.html