Task20 Jun 2019 08:04
Ive posted thoughts on saga board:
05:43I think what Saga is doing now,reducing their debt is the best thing long term for the company.
Insurance is highly competitive,differentiating by doing three year deals sounds like a good idea to keep up revenues and it puts a moat with the competition.
The promise of 50% eps as dividend,clarified by Karv and in notes of rns prem results 4th April.
Estimated profit figure for this year in same rns between 105 to120 million,an eps of at least 7p at even lower at 90 million profit would give a dividend of 3.5p over 10% at current levels.
Add another 30million with cruise ships fully running in two years 4.6p dividend about 14%.
Personally I can see profit levels at around 170m in two years my opinion only so a dividend of 6p.
Dont forget profit figures are net figures,gross figures are much higher giving this even greater potential as an overseas takeover target.
My own position is just under 10000 shares bought between 42 to 37p.