" Must admit I'm having difficulty understanding exactly what it means."
looks like JPM have initiated a position with 5.18% of the shares in Saga.
The voting rights seem to be split 1.2% for the shares and 3.98% via financial instruments.
Not sure how that last part works, as a financial instrument sort of implies the right to buy like a bought option or sold a put option. Neither of which should qualify for voting rights until the shares are taken.
Nonetheless 5% interest, from no previous position I assume, is very significant and JPM seem to believe in it.
The RNS proposing Patrick O'Sullivan as the new C.E.O indicates a serious move towards the insurance side of the business as a growth area. As more people see retirement approaching and longer life expectations, the need for insurance cover for the over-40's, let alone over-50's is becoming so important.
The low sp presents a buying opportunity for the big funds and the paying of a dividend is always a factor in their investment decisions. The fly in the ointment will be the cruise ship ventures in a highly competitive market.
needs cleaning up as goodwill exceeds market value by £250m or so. So a substantial chunk of goodwill needs writing off. Divi should be cut by up to two thirds at the same time so that savings can be invested in the business/reduce debt.
Such actions now will prevent greater problems down the road.
Just x3 holdings RNS in that time.
x2 show an INCREASE in holdings, x1 shows a reduction.
From all accounts more shares bought than sold by funds and institutions yet the price not only drops but gets absolutely hammered!
Make sense? No and certainly nothing to justify or explain a halving in share price.
Reasonable balanced response. I purchased 10,000 @ £1.15 last week as my research indicated that it is somewhat oversold given the known financials. Broker forecasts although reduced look ok. Also we are an ageing population so a renewed marketing strategy expenditure seems sensible to promote what has always been a respected brand. Not expecting £2 this year but somewhere around £1.60 appears reasonable assuming they stick to their stated dividend policy. As always DYOR as all IMHO.
In 2014, the year we floated on the stock exchange the company reported profit of c. £165m. This year the City is predicting that we will grow profit to c. £190m. This will be a record high level of profit for the company. Cash generation is very strong, and we have paid down a significant proportion of the debt we inherited at IPO.
The Group£s dividend has grown strongly throughout the past few years and again, we hope to pay a record high level of dividend to our shareholders this year.
We recently announced that in 2018 our profit will be c. 5% lower than in the current year, in part because we want to invest in growing the customer base. The City had expected a 5% increase in profit, and the difference has clearly disappointed our shareholders. This investment is intended to return our insurance and travel customer numbers to growth. We believe this is essential for the future of the business, it will support the dividends we pay in the future and, ultimately, deliver a larger and more profitable business.
As a business we remain focused on the execution of our strategy and driving performance within the business, and believe this will be recognised by the market
I wish you all the very best, and I hope that we can rebuild your confidence.
"It used to be the case, when you turned 50, LSE:SAGA:SagaÂ bombarded you with mail. Nowadays - in Scotland anyway - when you turn 50 you are sent a bowel cancer test kit. Eventually, Mrs T&T became the victim of a practical joke Â£100 fine c/o the ..."
" SAGA (LSE:SAGA) It used to be the case, when you turned 50, SAGA bombarded you with mail. Nowadays - in Scotland anyway - when you turn 50 you are sent a Bowel Cancer test kit. Eventually, Mrs T&T became the victim of a practical joke Â£100 ..."
Surely it would be latife if it didn't have to lose part of it's insurance business, if it wasn't 89% dependent on insurance for profit and the fact a very large % of it's travel revenue is yielding only a 10th of the overall profit.
I bought a small stake in this, it now seems like a mistake -- As realistically it is an insurance company, it's also possibly at a disadvantage since a large population 0-50 years can't be customers -- other insurance companes have no such restriction.
In 2014, the year Saga floated on the stock exchange the company reported profit of c. £165m. This year the City is predicting that Saga will grow profit to c. £190m. This will be a record high level of profit for the company.
Cash generation is very strong, and Saga has paid down a significant proportion of the debt inherited at IPO.
The Groups dividend has grown strongly throughout the past few years and again hopes to pay a record high level of dividend to shareholders this year.
Pity the SP has tanked 40% in response to record profits!!!
" Shareholders in Woodford's funds have seen this reaction 20-30 or 40 times across the 3 funds, all of which seem in a terrible state over the last 3 years - the disquiet on his message boards is something to see - Hargreaves have virtually delisted W from the recommended funds for clients. It seems his teams analytical skills leave a lot to be desired. "
Yes, and all for an annual management fee of 1%.
Roll up, roll up, exciting new FRTEB Capital and Income fund IPO. Losses guaranteed. Annual management fee of only 0.25% pa for the first 500,000 clients.
"we believe it is yet another over-reaction by the market"
Nothing to do with stock selection and entering at the correct price level then?
Shareholders in Woodford's funds have seen this reaction 20-30 or 40 times across the 3 funds, all of which seem in a terrible state over the last 3 years - the disquiet on his message boards is something to see - Hargreaves have virtually delisted W from the recommended funds for clients. It seems his teams analytical skills leave a lot to be desired.
So much for mine, I'm now (quick check) 13.7% down on this sucker!
Thank the heavens it's only a tiny proportion of my wad.
It might be appropriate to change the ticker symbol to SAG
Woodford Equity Income Fund, launched last year as a higher-yielding alternative to the Equity Income fund, also suffered from the heavy fall in the shares of Saga last month.
Shares in the provider of travel and insurance services for the over-50s are down 36% since December's profit warning, as the collapse of Monarch Airlines took its toll on the group's tour division and the broking business faced challenging conditions. That has seen the value of Woodford's holding fall to less than 1% of the Income Focus fund.
'Although this is clearly a disappointment, we believe it is yet another over-reaction by the market and that the shares still offer attractive value, with a yield of around 7% well covered by free cash flow,' said Woodford Investment Management.
'We are satisfied that this dividend is safe, but it is now less likely to grow than we had previously expected.'
Well Lance Batchelor spent nearly £100,000 on SAGA shares last month, and he's already 15% down on that deal. Either he's a fool with more money than sense, or the market has got this one very wrong. But as we know that rarely ever happens.
Well last week the sp rose nicely into the 126's - that didn't show any thoughts of bad news to come. This week it's fallen into the 116's. It's too volatile. Two new ships on the horizon, inward investing for future growth (yes that incurs cost). Nice dividend, low p/e, encouraging investment comments in the papers. This has to be the bargain share of 2018.
Think the markets are thinking there maybe more bad news to come. Don't think share price will go up until the market gets some positive news from the company. Can't say the management fills me with confidence.
Apropos my post of the 7th Dec, it seems to me that much of any 'window dressing' pressure has probably now been seen with the sp having come back a further 10% odd since then and with only a few dealing days left for this year, I guess we're now 'in the basement'.
Ergo, I think any further downside is likely to be minimal from here, given the probability that bargain hunters will likely move in and gain the upper hand shortly as the New Year gets underway and so I've now gone ahead with my purchase at 125p, fwiw....
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