Member Info for NoloServileCapis

I’d be happy to buy at 210 but ecstatic at sub 200.

210 much more likely.

I think my lowest purchase was at 183.19 in sept 20.

Very possibly and, if so, it makes the dividend stream all the more attractive and the buy-and-hold strategy all the more sensible.

Especially, as the next 5 years worth of profits (and therefore dividends) are already booked and included in the £13.2b of deferred profits currently sitting in the balance sheet; giving a simple fellow like me a degree of confidence to underpin my patience.

In the meantime I look forward to a decent buying opp tomorrow as the price falls ex-div.

GLA

I expect that you are right. The price does tend to fall further than the dividend when it goes ex-div and I think it presents a good opportunity to top up.

Whilst we as private investors are the last to know what is happening it does seem to me that the sp is driven by macro and wider market issues and sentiment than any company specific factors.

Assuming the company continues its divi growth plan it will generate over 240p in dividends over the next 10 years. On that basis I am happy to buy and hold.

Thank you.

It is turning into an expensive habit though

It is becoming compulsive.

There ought to be a LGEN shareholder group akin to alcoholics anon.

“Hi my name is x, and I am a LGEN shareholder and when the price dips I can’t stop myself buying more.”

Stathy,

I wouldn’t count on a takeover bid. Even if someone were to offer a high enough price to tempt the board and enough shareholders to accept it would then fail to gain regulatory approval. And that price would probably be far higher than any of the current brokers estimates.

Personally, I’m not so disappointed with the sp. I am buying to hold and am glad to be able top up at these prices. The price is largely driven by macro and not company specific factors. I am more interested in the security of the divi and the news today was good on that point.

My average purchase point is a little above the current sp but I can’t undo the past. I have bought shares at 171p (and regret not buying more) and at 290p (I regret buying at all).

If the sp remains low and the yield remains high for the whole year I won’t complain. It simply presents more buying opportunities to help find my retirement. It is all part of a diversified portfolio and I like the fact that so much of the next decades profits are already banked.

It is now.

Wish I’d been brave enough to do that.

On top of everything else can anyone show me another FTSE 100 co that has deferred profits almost equal to its market cap?

At the very least that gives me a lot of comfort regarding the security of the dividend and at £13b that is up on 6 months ago.

I’ll keep adding at these prices.

Barchid, thank you. That is really interesting and puts a whole different perspective on their debt.

Zac and Baldeagle are spot on. The best advice to take on a bulletin board is not to take advice from anonymous strangers on bulletin boards.

Bulletin boards are useful and interesting if you know about the company or want to learn about a company. Many posters are knowledgeable and look at companies in a myriad of ways.

I look at boards for companies/funds I am considering investing in to learn more about the company; but that is only a very small part of my research. The acronym DYOR is v important.

I think it was sir John templeton ( a legendary investor) who when he was asked for investment advice would reply “I can’t give you advice on what to buy now as I’d have to also be able to tell you when to sell.”

Ps once I am invested I will then contribute and like to test my thinking by posting rationale’s for buying/holding and seeing what reaction I get.

It is basically suggesting that rather than buying an annuity it is worth considering buying shares in the annuity provider instead. Filling space and keeping it simple but interesting that they are starting to write such articles.

There is an article in the money section of the Times today discussing the pro’s and con’s of buying shares in annuity providers rather than annuities.

So, UBS are speculating on a £400m buyback (circa 6.6p per share by my guess) to be announced on 15th.

Makes the recent posts on this board re the pro’s and con’s of share buybacks look prescient.

Also, the sp is, I suspect, being driven by wider market issues/sector sentiment rather than LGEN specific concerns. Its competitors prices are also under pressure.

Recent reviews have commended its solvency and ability to withstand severe shocks. They already have the next few years profits (and therefore dividends) booked so it can’t be that the market doubts that the dividend can be maintained.

At current prices the scope for sp growth outweighs the scope for shrinkage and the divi rewards patience.

What is not to like?

Quite right. For some reason I thought the 23rd was next week.

The LGEN sp has dropped by more than the divi on the last few divi’s. I haven’t researched it, merely observed.

Let’s see what happens next week.

Following the discussion about funds it occurs to me that at the moment I regard LGEN as a proxy fund, albeit quite a specialised one.

Faced with the choice of investing today in a fund or LGEN I am in a dilemma.

LGEN is bigger than many funds, trades at a 12% premium to NAV and has a secure and relatively reliable dividend stream.

In effect about 200p of the 228p I’d have to pay per share represents NAV. The extra 28p buys me an income stream of 20p pa. A yield of c 8.5% means that I get all my money back over the course of 10 years and still have the shares.

There is the added comfort that they have already booked the next few years profits and that their underlying businesses are not subject to the short term whims of current fashion or consumer tastes. Is it likely to fall much from here and stay there? Whilst it will, as usual, dip after the declaration of the dividend next week I doubt it will stay there for long.

There are risks, of course, but they are in line with most investments.

This may be simplistic but sometimes it helps to boil it down to basics.

Indeed.

But, I think we can agree that the current price is not toppy and that there are greater chances on the upside than on the down.

I come back to the basics. This is a well run and profitable company with a large real estate portfolio whose market cap is 1.5 times it’s profit and 1/3 of it’s NAV.