I understand the logic of this but surely so does LGEN management and yet they are so bullish in their outlook and make actual reference to the current political landscape claiming that they don’t expect it to have a material impact.
As you say though. Let’s hope for some more certain times albeit it is there’s uncertainties that allow us to pick up income stocks at such low prices... do I want LGEN to be 350p when I get my next £20k ISA allowance or is it better to still be 240p...?
Nice rise as it went ex div. always think it’s strange when that happens. I guess it’s only like the sp going up by 4% though which is not inconceivable. Just makes you wonder. Who bought today when they could have bought yesterday for less and taken the div?
Anyway I took this as my opportunity to get out. The shorts have been weighing on me a little but what has really made my decision is the consistent difference between reported eps and underlying eps. I don’t think you should call things exceptional if they happen every year. Loads of companies do it but one which sticks in my mind is Carillion who I had a lucky escape with.
If the Ftse didn’t have so many “safe” juicy picks (BT, LGEN, Lloyds etc) then it would be worth the risk for the yield and p/e. Good luck all. I will keep on my watch list.
You mention a forward Eps of 7p but on the lowest estimate of £105m would this not be 7.6p or am I bodging my calculations? A 7.6p eps gives a p/e of 5.5 and a yield of 9% based on paying half of profits in dividends. And this is on the lowest end of profit range....
Obviously we could be being lied to/deceived but if you take RNS on face value then 42p feels like a great price....?
RE: Will add more if it goes sub 250p29 May 2019 14:23
I topped up at 257 last week. Now tempted to add more which would make LGEN my biggest holding.. I am looking for the counter arguments to this.... any bears on this stock who can give a balanced view?
ThanksTom. I threw most of the cash at BT and also topped up my holding with Legal & General. Royal Mail At 193 yesterday seemed a silly price despite their troubles. If they go there again pre divi then I would take a small punt.
I'm out. Think yesterdays drop across the market has revealed better value options than this. the increase in the market was what saved the AUM figure in the last update so if the market is lower for the next update I fear an even greater loss to AUM. I will put on watch list and if this goes anywhere near 330 again then I will try to get back in. GLA
Note to holders - Last time I exited this there was nearly a 10% rise over 2 days so may be worth holding until at least mid next week :)