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I tend to avoid trading any shares I hold as I tend to lose money 90% of the time. Anyway, I am unable to trade LGEN even if I wanted to as my shares are contained in a ISA on the Fidelity platform. They have strict rules on trading and don't allow it... good job for me then.
Divi well covered. Here's some key data:
Operating profits (before adjustments) are at £1.66bn, with organic capital generation covering the cumulative dividend payment of £4.5bn, with £0.8bn to spare.
I hope this helps for now.
I haven't heard any update yet, but not sure if António Simões has delivered the results of his strategic review? SP climbed this morning, but since declining from intraday highs as I write. Not sure if there's any correlation here, however unlikely? Any update would be RNS worthy me feels.
Not good for share prices unfortunately. Brace for a beating on the opening bell. LGEN has gone from a high of £2.57 to a low of £2.48 in a matter of minutes. This will be a good day for those looking to buy in I expect.
"There's enough predictable movement in this share to make this relatively straightforward, as stated earlier by others, this will likely fall by more than Divi after 25/4 so one can sell some in the run up to XD and buy back cheaper later in your ISA and also cover your costs, plus maybe a cheeky bit of extra profit to boot ! Doesn't always work exactly to plan and preferred timescale, but if you're prepared to monitor the price"
Last year being a case in question. Unfortunately for me, I can never get the timing right so won't attempt to trade this share. There's a 90% chance I'd lose!
I think I recall the SP being circa £2.51 around ex-div date last year dropping to £2.35 ish which is a drop of £0.16p. It then continued to drop to circa £2.26 in early May which represents a total drop of £0.35p. I remember kicking myself for not selling then buying back but then again, I'm useless playing that game. I'll probably continue to re-invest the dividend in more shares as is my original additional income at retirement strategy.
Is the none too insignificant debt that acted like a noose around its neck. Once this debt becomes better manageable, the stock should re-rate and hence, reward investors. Fingers crossed it's just a matter of time.
I confess LGEN hasn't performed well SP wise particularly versus it's rivals such as Aviva and Phoenix, but I guess that's why it has a new CEO. And that's why the strategy announcement on the 12th June is such an important diary date for us investors. We should learn the direction of the business moving forward, and hopefully, one whereby Mr Market approves. The SP continues to stagnate which means the same applies to its market cap. Surely, this will be a matter of priority that António Simões would want to address. I am aware that no more has been said regarding the consultants he has employed so no early signs. I'm guessing the dividend policy will remain the same, but who knows. The divi promise comes to an end this year so we await with bated breath what the next 5 Yr policy will be. Normally, growth comes at the expense of dividends so will he continue to steer the boat in calm waters as per the previous CEO or will he change direction? We've seen what a new CEO can bring to the fortunes of a business... just look at the turnaround with RR. We gould do with a bit of the same please Antonio albeit without any talk of burning platforms!
RNS: "In accordance with such remuneration terms, on 20 March 2024, the Company granted António Simões the following conditional awards of a total of 1,229,642 ordinary shares."
This will be awarded in stages, but not a bad ol chunk of shares to compensate him for leaving a lucrative former job.
I'm sure he'll look forward to the divis just as much as we do, but my guess is, he'll want to strengthen the market cap of the company and in doing so, the share price.
In this next next qtr, we'll see.
Thanks for sharing this update with us BeReyt. Cala never sat comfortably with me and one hopes there's more than an element of truth in the proposed sale. (some may disagree) I wonder what they will do with the £750m if it does go on to sell.
Zac "I'm reducing my exposure to dividend payers. I'm happy to simply sell funds to raise capital as and when required."
To be honest, I can't argue with your strategy.
I do have a couple of funds & trusts in my ISA with Fundsmith being one of them. While LGEN is my largest investment in there, Fundsmith isn’t too far behind. I'm happy with Fundsmith but much more nervous about LGEN due to the reasons already outlined and may well, yet, reduce my holding and buy a tracker which I confess to be light on.
So far today, however, the SP isn't being kind with the same being said for other, similar business's such as Phoenix which I always rend to benchmark.
It would be remiss of me nit to mention how appreciative I am of other poster's strategies when discussing LGEN & other investment types.
That's very true, there's always a chance i will regret it, maybe i should be looking for a higher figure min 2.60 and if it doesn't get there just hold, was thinking maybe just selling half of my shares, don't you just hate it though when your showing a nice profit then suddenly it's all wiped away
decisions decisions
Morning robleo,
My strategy with LGEN ( as I've mentioned a few times on this board over the years) is to build my investment here by means of re-investing the dividend. Once, I retire (in 30 months time) convert the dividend payments to income. I can take this tax free in an ISA.
However, I made this decision while Sir Nigel Wilson was at the help and committing to a 5yr dividend payment policy. Times have since changed, and now we have a new CEO who could have different ideas. Unsure which direction he wants to take LGEN's Dividend policy over the next 5yrs means there is greater uncertainty than if Sir Nigel was still at the helm. I am therefore, in exactly the same position as you. Perhaps the rational thing to do is sell at a reasonable SP (£2.55 a pop for me) and hold in cash until Antonio Simones announcement on or around the 12th June. Yes, he may commit to another 5yrs of 5% Divi growth which, should, in theory provide a boost in the SP and I miss out or he could part sacrifice the Divi for growth. The point is, the near term future is a tad more uncertain with the change in CEO. If I sell, it means potentially having to re-think my retirement income plans which I'm loathe to do, but selling eithet whole or part thereof, may well be the safest option as you have rightly alluded to. Wishing you well my friend.
Eckie8, first rule of investing, never trust what a broker like JP Morgan says. They change their views with the weather or what they had for last night's dinner. In respect of your LGEN holding, what is your break-even price?
Have you considered using your LGEN divis as a supplement to your retirement income? I have mine in an Isa so I'll be able to withdraw the divis tax free. Currently around an 8% yield.