Member Info for MattTheBrave

"The economics simply didn’t make sense. Indeed, looking back it might make a terrific case study of how not to do things.”

Seem to remember a few of us making this exact point at the time. Can't remember getting too many 'thumbs up' on those posts........;-), LOL (There you go Dan, done both, just for you)

DRIP? Some form of Incentive Plan?

agreed GS. As Alan Partridge would say: 'Sub-human scum'.......;-))

Covid-19 is a transient issue, even if it lasts 6 months longer than many of us think. Being completely uncharted territory, we can expect illogical and overly prudent repsonses, and bizarre stock market behaviour. If you needed that money now, that's unfortunate timing. If you don't sit tight, and things will look a lot better in 12 months if not quicker. If you have money to invest through your ISA, then start drip feeding it in on down days is my advice. Regarding LGIM, it remains hugely undervalued. As I stated in my poston 31 March:
- There will be no pressure on L&G to cut the dividend [confirmed a day later!]
- The pension scheme buy-in market continues unabated by current situation (and I know this for a fact)
- Asset management - fees on equity and risk asset funds will fall. However, L&G also run a significant of money in govt bonds which will have risen hugely.
- Death rate not significant enough, or in the young to have a significant effect on life insurance profitability
- Stock on 6.5X earnings yielding over 9%. [ now 7x]
When investors look back in 12 months, they will be kicking themselves that they didn't buy this.

Keep the faith people.

Agree with all that - a very poor decision by Aviva, and just reflects what a weak management they are versus LGEN. Investors won't forget their traitorous behaviour.

..are a bunch of *****rs. Can't be any plainer than that. Difficult to work out why Lgen getting bashed on that though.....

As I just posted on the LGEN board:
You can calculate fair value for any share by discounting all future cash flows back to today - it's called a Net present Value methodolgy. On average, around 10% of a UK stock's value on this basis is this year's earnings. So, if you assume the entire earnings for this year are now zero, that should only take 10% off a stock's price. Personally, whilst I think earnings will be down , I don't think they will be zero, and I think from next year, they will revert back to what they were for most companies, so if good companies are down by more than 10% (and most are mutliples of this down) then there are bargains to be had. Exclude Oil, Tourism, and retail, as some of these will go bust and never recover. However, Financial services, Pharmaceuticals, tech, media amongst others are vastly oversold, none more so than LGEN (and Barcs and LLoyds BTW), and is why I've been buying from Mid March, and continued with new ISA allocation yesterday. There will be more vol, and more worry, but a year from now, you won't believe what an opportunity today's levels are!! All IMO of course.

You can calculate fair value for any share by discounting all future cash flows back to today - it's called a Net present Value methodolgy. On average, around 10% of a UK stock's value on this basis is this year's earnings. So, if you assume the entire earnings for this year are now zero, that should only take 10% off a stock's price. Personally, whilst I think earnings will be down , I don't think they will be zero, and I think from next year, they will revert back to what they were for most companies, so if good companies are down by more than 10% (and most are mutliples of this down) then there are bargains to be had. Exclude Oil, Tourism, and retail, as some of these will go bust and never recover. However, Financial services, Pharmaceuticals, tech, media amongst others are vastly oversold, none more so than LGEN (and Barcs and LLoyds BTW), and is why I've been buying from Mid March, and continued with new ISA allocation yesterday. There will be more vol, and more worry, but a year from now, you won't believe what an opportunity today's levels are!! All IMO of course.

...which means we all have £20k allowance for new ISAa, and quitre frankly, this couldn't have come at a better time. LGEN, BARC, and LLOY all on the list to buy for me, so I hope they stay weak for a few days longer!!

Let's get a few things clear:
- There will be no pressure on L&G to cut the dividend
- The pension scheme buy-in market continues unabated by current situation (and I know this for a fact)
- Asset management - fees on equity and risk asset funds will fall. However, L&G also run a significant of money in govt bonds which will have risen hugely.
- Death rate not significant enough, or in the young to have a significant effect on life insurance profitability
- Stock on 6.5X earnings yielding over 9%.
When investors look back in 12 months, they will be kicking themselves that they didn't buy this. That's my view anyway!

This is clear proof that the market is completely ignoring fundamentals, and working on sentiment alone. This may continue for some time, but ultimately, fundamentals will return. The UK market (and particularlly this stock) are a steal here, and we will look back in 12 months and wonder how on earth the market got so low. New ISA season around the corner, and bargains to be had all over - that's the one thing keeping me smiling at the moment!!

Spot on Vulcan - I have no words to decribe this carnage.......

Agreed. Utter and complete panic with no real consideration of the fundamentals. Buying here has to make you good money over a 12 month timeframe.

...pretty stupid of them to release results in this climate without even mentioning Covid 19. I suspect this is part of the reason for the big initial sell of. Seems to be recovering a bit now though!

It's not retail in traditional sense, but large logistics wharehouses for online shopping, which means it's the future and it will grow for many years. Sure they can't escape the effects of the recession I am sure we are now in, but, the current price is ludicrous. I'm buying today!

Who still uses bank note FFS!! Cards all the way for me!! :-))

9x earnings, 7% yield, great track record of growth, fantastice balance sheet, high quality asset management and annuity business. This is highly highly undervalued. I see this going to £3.50 before year end, regardless of FTSE, Viruses, or US elections

Only true because CMC slashed their divvy whilst IG didn't. BTW, I expect the 43p div to be fully covered by EPS and FCF this year, not uncovered as you suggest. Time will tell.

Cheapboy - Done!

Big and unexpected 50bps cut in US rates this afternoon. Markets spiked initially but drifted back since.