Member Info for Rzez

But the SP went down today. Hopefully a positive finish end of Friday

Sorry for horrific spelling. It’s been a long day and can’t edit the post

DJWall1s - please don’t take it as advise as that’s not how it was intended, it’s simply the way I can buy and forget and not be bothered about the SP dropping. Just check everyone anar again what your dividened rerun on ikvestment is.

If you would have done this strategy with DLG, where they stopped the dividends you’d be feeling pretty silly rite now. But hopefully will return to giving dividends over the next year or 2.

Always do your own research to check the company can afford to pay the dividend easily.

Rzez - no advise ever given only drivel

Can’t edit, I meant to add as long as that one company is that of your current companies pension provider.

However I’ve also just figured out a way of retaining 50% of the customers when they switch companies and pension companies as a result. This would actually increase retention and therefore profits.

So please ignore my last post.

GLA

For those of us which missed out on the final salary pensions, moving multiple pensions from one company to another is a piece of cake.

The biggest scare is that vast amounts of people could leave the likes of Aviva and Lgen to go for a cheaper competitor.

I must admit I see an upside for the smaller players to get a better market share through this, rather than the big boys.

With any dividend share in the UK. You need to be in it for the long term. E.g if a div is paying 10% when you buy it, stay in it for 10 years, that way you can either sell out and have the valuation of the share after 10 years as long as it doesn’t cut the dividend.

If you’re really long term you reinvest the dividends and hold longer than 10 years so your total dividend percentage works out closer to 25% on your original cost price.

This builds wealth rather than simple profit especially if done within an isa.

But recently you could have got a 5.9% cash isa for 2 years which takes all risks out of investing.

Eventually rates will go down and money will come back into the markets, question is will a crash happen in the interim

Https://ukinvestormagazine.co.uk/legal-general-shares-how-far-could-the-life-insurer-fall/

Doom and gloom article, or good prediction of the future?

FWIW I’m overweight in Lgen

Bought in at 510.5 happy with that

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?

In at 179. See if it falls more. Definitely in buying territory now. Loving this and Lgen at the moment.

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…