The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Really getting hit here at the moment! Biotech sector is definitely taking a breather. Hopefully it will bounce a little and get back on track. no concerns long term, but not nice to see!
I believe the drop off will be much more pronounced than 10-15%. I agree, those wishing to take an annuity will have a higher likelihood of heading to PA. or JRG; but the drop in numbers going for annuities will more than offset this. Consensus advice as it stands will still point to flexible drawdown in the majority of cases as soon as it becomes wideley available. Annuities are not really a sensible option unless you have an incredibly low risk tolerance (and I mean really, REALLY low). As for increasing life expectancy; I completely agree, but do not forget that such expectations are implicitly accounted for in the pricing of annuities. As mortality improves, the annuity conversion factors will increase too. This means less pension for your pot. This is an unavoidable fact; insurers by necessity must price annuities to give a certain probability of profit, and they do not have to freedom to take investment risk with the money paid to them in exchange for an annuity. Once more, I do not wish to call this as a recovery play or a struggling company, I'd just exercise caution before 'jumping in for the bounce'; there are some major issues at play here.
Fundamentals are indeed very strong here. If you're interesting in the type of analysis used at stockopedia; DTG currently has a stockrank of 99 and appears on 8 guru screens. This places it as one of the strongest shares on these metrics (alongside LOOK). Shows potential for plenty of future growth, but should also be relatively defensive too.
It would hurt the market in the sense that demand for gilts would drop substantially. This is part of the reason why there is an intention to effectively lock members into DB Schemes, such that they cannot transfer out to DC arrangements. This will ensure some demand for gilts.
I'm also primarily working in final salary, but have some experience with a wider view of pensions. I believe there will be no impact on the DB schemes - TFC will remain the same, as will the triv comm limits etc. The main point from the budget that could hit DB is the restriction of transfers from DB to DC. I'm intrigued to see how they would implement this... definitely one to watch unfold (if it takes off). Re: moving annuities after retirement - I can see your point, but I think the 'logistics' of this would be very difficult. To allow people to move their annuity after retirement would bring in an incredible level of uncertainty for the providers which, I believe, would actually be counterproductive and lead to worse rates for pensioners. Correct - no changes to existing policies, but a company cannot be sustained without future business. I completely agree that this cannot be fully understood at this point, hence I'm not willing to make any predictions on how this will play out. There is definitely a reason to be cautious, and definitely a reason to keep a close eye on how this develops over the next year. I am, however, almost certain that the level of demand for annuities will drop significantly. Time to adapt!
They would only pay 40% if they take it all at once. The income can be taken in a similar way to an annuity, i.e. a set amount per year, but the remaining fund stays invested. There is no reason the tax liability would be any higher than the equivalent annuity income - there is just a LOT more flexibility.
I actually completely disagree with you on this point. Partnership specialises in impaired life annuities; in simple terms they offer better annuity rate to those with lower life expectancies. Up to now, people were forced to use their pension pot to purchase an annuity unless stringent requirements were met - which a lot of people simply couldn't do. These requirements are now (well, as of April 2015) gone. This means those who would qualify for an impaired life annuity and may have gone down this route, can now have immediate and unrestricted (subject to tax) access to their pension fund. The way annuity providers price will build in a significant margin of prudence. If someone is genuinely really ill, there is no advantage of taking out such an annuity - it will, in all cases other than recovery, provide less income than using flexible drawdown. I believe this very point is which Partnership has taken such a big hit. The pension world is changing dramatically!
Just about touching on oversold now, expecting this to bounce slightly (or at least level out) in the coming days. Interesting 7m buy earlier also!
Yep.. quietly optimistic about the results. There's definitely some value to be had here.
Things have been steady here for a while. Quite a good rise this morning, but no real volume behind it. Things will pick up pace soon though, and the volume will start jumping up again.
I'd like to see a little momentum prior to update. Still think this share is largely under the radar though. Hoping (and expecting!) for a positive update.
Just waiting for a slight shift in momentum then will jump in here. Prospects are great here, expecting a very bullish set of results/trading update. Prospective dividend looks very strong too. Can see short-med term upside of easily 20%.
Fox marble presenting - 5th April. Will be interesting to see If this drums up some interest!
Continuing! Good to see this keep pushing on. Got roughly 25% of my PF in here (fairly high exposure I know!), but very confident of returns. Serious long term hold!
I think you've hit the nail on the head; this is undervalued simply because it is either under the radar or misunderstood. As you've noted... there is a massive upside here. For some reason though, people don't seem to find it exciting... they'd rather chase, as you put it, jam tomorrow shares. Happy to put this one in the drawer and sit it out, very confident of a good return.
Saw the 400% also.. Thought I might be in for some serious money! Happy to hold here, next few months should bring some appreciation (albeit not 400%!)
It should indeed track closer to the Magna fund. It will still have influence from PLE and SUMM, though I wouldn't be surprised to see a further reduction in holding at the next update. Seems they are keen to move towards holding as much as possible in the Magna fund. As for BLNX - I pulled out pretty quick. Misread the bottom and sold out with a few % loss. Glad I did too, has been falling pretty heavily. Considered jumping back in there soon, but it's a dangerous game trying to call that one. A little more clear cut here so likely will put what I can in here. I expect the price to have risen here by the time I can buy in, but it's got legs for a good gain yet.
Yup.. don't want to give it the kiss of death, but we seem to have held these levels really well. SP has consolidated nicely from the spike up to high teens - definitely have a solid base now for a push up to a new trading range on news.
Much appreciated! I realise that with the size of my PF currently (still young!), there's no way I can have a position in every company that I feel shows good value, but I still like to track those I find interesting. It's good in some sense too, as whilst I'm not invested I naturally take a completely impartial stance. Nice to see a little more rise here this morning. I've freed up a little bit of cash now, but ideally want to hold off till I have at least a few £k to put in. I'm intrigued as to if/when the SP here really takes off and hits something close to NAV. I'd expect somewhere around July it should be trading at a much smaller discount, maybe around 5-10%.
Apologies, 2x 650k trades.