Member Info for tricky1276

Some more thoughts on the British economy and interest rates. " Our " foreign owned car manufacturers are presently churning out product in record quantities. A significant proportion of the vehicles are " purchased " on a never never contract basis . That's never pay sensible interest rates and never actually own the vehicle. What a farce, the GOVERNMENT will not raise rates and if they did, along with a meaty Brexit tariff the car industry would fall off a cliff . Indeed that is where they would need to dump them because nobody would be purchasing . Take the governments pet subject of the housing market . How are the needed 200000 houses a year going to be built and purchased if rates revert to anywhere near normal levels ? What about all those " help to buyers " strung out on a limb . The GOVERNMENT will not raise interest rates. Why do I state that the government will not raise , surely it is the independent BOE that will take that decision ? What a laugh carney ( yes, that hero who saved us all after the Brexit vote by slashing rates a whole 0.25 % !! At least he tells us that . He is obviously very intelligent so he must know he is talking utter rollocks ) will continue to take instruction from his paymasters . As long as this madness continues the yield here will remain very attractive.

MtheB apologies for not replying sooner , only when I read sexysue's ( love the name ) post did I realize you had left a comment . Just listen to all the ad's on LBC etc and you will recognize that my post and the lovely Sue's back up are accurate . the Advertising Standards Authority would have a field day otherwise. I have no idea what the statute number is but I can absolutely guarantee it exists. The revenue stream for companies such as LGEN SL. etc must be on the rise and assured for the medium to long term. Not withstanding the above my belief is that the div yield here in relation to the general economy will become sought after . The Boe / carney / government have painted themselves into a corner with their nonsensical QE policy and consequent ludicrous interest rates . We now have the best part of a generation weaned on the never never . The " authorities " will not dare to raise rates for fear of reaping the harvest of their short sighted policies.

Great results and nice div . Still a decent buy / add

And me. Don't worry about short term falls in the sp. The yield here as backed up by the Telegraph ( thanks for link ) article should be sustainable over a number of years, and will remain attractive. Even if inflation rises rises to 6% I cannot envisage smarmy carney daring to raise rates after all the debt that he and his government cronies have encouraged with help to buy etc

Q4 update looking good for the full year . Very nimble management, the company appears to be on the cusp of a new growth phase with the roll out of the new operating system and the Barcelona centre. Conjecture, but IMO Brexit could be very beneficial to the company. When it is actually triggered there could be a lot of cross border staff movement and recruitment which will add to the bottom line. In the event of weakness in the SP I will be adding

If the market falls this will fall with it , But as long as interest yields are at ludicrous levels and there is a legal obligation for employees to enter a pension fund IMO this share is a hearty buy and hold. Bought just before Brexit to pick up a div and doubled up @ 172 the day after, will not be selling. ATB

Broker sell rating 186.was probably the cause. I note that it was a reiteration , they must be very keen to get this down . I will be holding long term for the div , solid company hard to find better value elsewhere.

the way that company after company are stating that they face difficulties with the UK economy , yet our political leaders continue to claim that all is hunky and chunky ? Porky pies !!!

today should bode well for the update tomorrow. Significant proportion of revenue is non sterling which will assist. Guess the brexit fiasco could inhibit some hiring activity in the UK but who knows ? There could be an increased churn which might actually increase revenue. Strong div will hopefully be maintained at year end.

how often do you see a company purchasing it's own shares only to have the sp plummet later ? Now is the time for the company to be purchasing shares ,strikes me that me management has been rather complacent. However all is not lost they do not state that they will be making a loss , the div might be cut but it should still be pretty healthy compared to what you can get elsewhere. Hold a few here might top up if it gets sub 180 no need to sell.

Yes gov. bonds are deemed to be a safe haven. But looking at the amount of debt built up over the long term and next to zero or negative yields how safe is that assumption ? I guess if the you know what hits the fan they can revert to printing so bond holders should be guaranteed their cash back , but my belief is that there is the potential for the monetary system to blow up as a direct result QE.

Agreed RBS & Lehmans were larger , but iMO the mere fact that insurance companies are responsible for paying the pensions of a large % of the population would render the government vulnerable if they were allowed to fail. The nonsense with near negative rates is obviously putting pressure on future annuity payments and insurance companies. Nobody can be sure how this will pan out so your negative stance could prove to be correct . Just now every employer is obliged to offer a pension quite where the funds are to be invested without risk is beyond me . ATB ( thankfully I am not dependent on a pension down the line )

Mmm. Not really, companies like Lgen have to be very conservative in their investment outlook . They do not take ludicrous risks at the top of the market and after all they could be responsible for paying out your pension. ATB

" and should still be here in 15 years time ". Indeed it should be . If companies of this size and importance fail governments go down with it .

The eventual sum of £100 million in revenue if achieved with commensurate cost savings and synergies normally associated with integration should feed through to a very healthy bottom line.

like the market is realizing that it drastically under priced some healthy dividend payers as a result of brexit . Several of my holdings have moved up against the recent market trend including SL. and MTO.

Time to buy IMO @ a relative low , topped up today, the market is pricing in a disaster scenario . Happy to hold for divs for as long as it is necessary . If this company along with the likes of SL. goes belly up we will all be past caring anyway..

The potential yield should supply some buoyancy .i have decided to hold and risk a brexit. Could not agree more with your final sentence, we are in a complete pickle as a result of what amounts to money printing, the payback will have to come and it could be nasty.

Agreed results could hardly be better . The div yield is a bit anemic but I don't really mind that ,a high growth company and they can probably utilize the cash better than citizen Joe. Well diversified which reduces risk , plenty of repeat revenue , nimble management and a market cap of only 220m. Possible tasty morsel for a large cap service company ?

Well there you go , it was Liontrust . Had to be pre - arranged transactions from another large holder. More today, so a large position is being built . Very interesting.