Member Info for Couerdelion

How is 9% no better than a savings account? If you are looking at historic values then you must be including the period of rising interest rates when the SP of stocks like L&G will naturally have fallen and it will only be this fault-line where it will underperform cash.

It's always better having more "buyers" so you can expect a loss of momentum once the buyback programme is complete. Still some way to go before that happens so difficult to predict the direction of the SP at that point.

There's not a lot that the company can do about the SP right now. It's starting to look like a dividend stock which changes the way I tend to view the shares from being a capitalised value of future dividends to the dividend stream itself. With prices where they are now, I find it easier to justify holding more as a bond proxy with inflation-linked dividends and capital upside.

As long as you keep an eye on your overall exposure and don't have any immediate use for the cash, you can be fairly relaxed that you will make money on the 3.63 SP. "Be greedy when others are fearful" is not a bad mantra as long as you are conscious of what you might lose.

I'm just using the sub 4p price to add but I'll be recovering the investment quite early when the price starts to move up leaving any profits in shares.

They will have valued the options at the time they were taken up so there will be some reflection of their value in the accounts. But I think this is a P&L cost which is shown at the time they were offered and don't know if these are marked-to-market each year.

It's not really anything to do with how the options work. More about lots of people getting a decent chunk of shares under a 3-yr or 5-yr sharesave plan which they buy at a discount and which many will sell at the first opportunity.

Bonus share schemes are different because these are taxed as income but a common feature here that recipients will sell a portion of the vested shares to settle the tax bill

Almost all of the presents I got this year came from M&S.

I added this morning with the plan to recover the cash invested when it reaches c.1210p. And I think that price is still quite cheap.

Tax on capital gains are 18% (basic rate) or 24% (higher rate).

Plenty of depressed stocks in the UK right now and I will be buying tomorrow to get a few NY bargains. These will be dividend stocks where I can effectively ignore the price although I plan to buy on the expectation that prices will be more expensive in future.

He's a busy little bee, this MichaelJordan. 138 posts (and counting) since 11am today and you can probably guess what they all say

I picked up a few more shares today, At less than 3.6p they were too cheap to ignore.

You're correct Guitarx1, the bonds will be held to match liabilities so any mark-down of the assets will be match by a corresponding reduction in liabilities.

Dipped my toe in for the first time with this stock today. I figured that it would be a good time to buy while the dividend yield was over 9% - level or increasing it's going to generate a little something towards my living expenses.

What are we being saved from, Shuvlin? The business is sound, give or take a few disruptions, and the strategy is clear. Since the value is there, it's as good a stock as I know for people to hold or add to.

It broke through the 250p level so there's room for optimism. 500p is probably a bit rich and I think it needs to beat expectations on results but I think this can start to drift upwards again. I'm expecting at least one dividend (in the form of profit-taking) during the year when it passes 325p

I read it and am now a millionaire. This guy keeps his promises.

Feel free to wait for the price to lose another 33%, but I really can't see that happening. The price is already trading at a PE ratio of 5 which is criminally low and would suggest profits are expected to decline.

I will certainly be adding if the price dips anywhere near 250p

It's all hypothetical as no-one is going to offer 16p when they can pick up plenty of shares on the market at a quarter of the price. Best to assume that we just have to be patient for the results to come in which would justify a higher price and for the market to reflect that view. I, for one, will be recouping some of my investment at different prices as the SP ticks up.

For those thinking of making an easy 30% on the current offer of 14.5p, it's unlikely to work like that. The market is pricing in a post-tender SP of 12.65p so you can only make a profit from those shareholders who don't offer all their shares under the tender offer.

By my crude reckoning the post-tender NAV is going to be around 24.5p so will still be trading at a discount of nearly 50%. Not as big a discount as it has been but I guess the market is applying a lower discount to the cash balances as much of this is going to be returned imminently to shareholders.

Interesting that they state that the Board is "contemplating" the proposal. Will have to re-read the RNS but it seems odd that they are announcing something here that has yet to be agreed.

If the tender offer is to be above the SP at the time of the offer, you'd be sensible to take it up at 100%. The market will already be pricing in a post-tender SP which will be lower thank the current price.

If you like the prospects for the share after tender, you can buy more now. and still take up the tender offer.