Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Do you have a link to the article?
I’ve got a trade plan set up if it dips just below 210. As am happy to sit on the shares for 10 years reinvesting the divis at which point with all things staying the same, my new divi amount will be over double what it is today.
Others may not be willing to stay in the market that long.
Each to their own.
GLA
Currently, the following risks have been identified for the company:
Major Risks
Debt is not well covered by operating cash flow (currently running at an operating cash loss).
Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future.
High level of non-cash earnings (35% accrual ratio).
Revenue is less than US$1m.
Where did they get less than $1m from?
So here’s my take on it. I have bought Lgen among others at a price I am happy with the dividend yield at, at the time of purchasing. Could I have bought in lower? Of course. However at the time I was happy with the yield and will continue to be as long as they don’t cut the dividend . I have the ability to average down if I wish and increase the percentage, or sit on my hands and keep getting the dividend.
This is a great place to be, and although you can trade the share, it will likely bring more pain than comfort.
Sometimes you just need to appreciate what you have.
I imagine the issue is who will want the job who is qualified to do the turnaround? You have the ability to turn it from rags to riches, but you also have to turn the tide on an aging business model with lots of cheaper competitors and very little USP.
I love DLG, but the only way I can see we get someone with the skills required is we pay them twice the going rate or we take a chance on someone unproven who’s been nurtured in another company like aviva or alliance etc. I hope the board have nominated the hungriest of recruiters willing to do what needs to be done to get the talent. Otherwise I don’t see this ending well.
GLA
Yea, this and my Poly holding have been a bad 12 months for me. Everything held in Isa’s so no need to offset CG for me. Nice to be buying Av. Lgen and MnG at good prices again though. ??
Damn…. This share can’t catch a break. Think it’s going into the bottom drawer this onr and look at it again in a few years
From the telegraph
“ Legal & General, Schroders and HSBC all rank among Credit Suisse’s top 50 shareholders, though each own less than 1pc of the bank.”
Question is, are those shares owned through funds, or through direct investments of capital?
Am I reading this correctly, they continued to take on unprofitable motor policies even when they already knew what was coming? Jesus she really did bury her head in the sand. Good riddance to her. Unlikely dividends until 2024 by the sounds of it and wouldn’t surprise me if it was the second half.
Long hold or get out and come back in a year or 2 if I wasn’t so far down. GLA
Yup well done to those that held on. Nerves of steel! GLA
I believe she was pushed, you can’t take the kind of SP fall due to unimaginable mismanagement and get away with it. I’m glad the BoDs have seen sense and I see it as a positive decisive move. Need someone with a strong financial background to step up and get us out of her mess.
Regarding UKI underwriting you’re correct they are strict, however the point I was trying to make is you can alter the underwriting dependent on the product, so by electively making it even strictor, you can create a product that sells some of the cheapest insurance, with some of the least cover with the strictest underwriting. This would take the profitable customers away from the cheap competitors making it harder for them to make a profit.
That way we increase our market share by diluting others profitability over time. It’s radical but would show a new way of thinking that we so desperately need.
Anyways future is looking bright, looking forward to seeing the replacements credentials.
Having a quick look it still has 5* defaqto rating and offers insurance abroad Upto 21 days etc. doesn’t seem to be the cheap and no thrills option I was suggesting towards. Although the underwrighting could have different ts&cs making it a less risky product…
Oh they may have, I’m not aware of this brand. Is this the cheap no thrills brand I mentioned before? In which case bravo. I wasn’t aware of such. I’ll look into it now.
So it sounds like we all believe change is needed. In my view there’s an option for movement.
Among the own brands we have Direct line (top end of market) and Churchill (medium section of the market) we than have RBS Prudential etc.
What we don’t have is a low cost no frills own brand insurance company. I appreciate some would say this would take market away from the others, however this is already happening, so by initiating 1 or 2 new low cost brands to be put onto the comparison websites you effectively prevent the competition from taking on as many of your customers. To make it less of a risk you make the underwriting criteria strict and adjust premiums severely for different areas.
This would allow you to be competitive but only take on near risk free customers.
That way you saturate more of the market.
Food for thought…
I was under the impression they were suggesting that because the SP has fallen then the money would have been better off being given out as a special dividend or purchased when the price was lower.
The second part is impossible to call as the price food be more or less at any point which is why they tend to buy them over a period of time. The first part is possible but the idea would have been to reduce the cost of the dividends to the company rather than increase them. However this is all looking backwards which is easy. Though questions really need to be asked why an insurance company essentially can’t afford it’s risk. This is total mismanagement of capital.
Mentioning possible raise in the future as hot dry weather in summer and extreme cold wet weather in winter may not be unexpected going forward, so may need to change.
Keeping my shares I’m holding before the drop but sold out on my buy after the drop.
Think I’ll wait to see what the future holds for this one.
I’ve added as happy to hold for another year. As it’s a good business. But I 100% agree she needs to go, I believe share buybacks are great if you have spare cash reserves, but not if you can’t afford to manage the business in an expected tough period. If she couldn’t see these or similar events happening from a mile off she needs to go, as she’s not leading she’s reacting after the events. We need a leader with a track record ASAP
SD wasn’t that 12% bond fixed for 5 years within a listed company? Seems strange that their best option to raise capital would be at 12% figure and have to sell it as a bond. Can’t remember if it was on motley fool or the telegraph.
Just be careful and make sure you read their balance sheet. I personally can’t, but it did sound too good to be true. Especially if it was on motley fool