marktime1231
25 Apr 2018
Halved it Shed the chunk bought in the 250's a couple of months ago. Staring at a portfolio rocked by two good-but-not-good-enough Q1 updates today and four ex-divs tomorrow, so I decided to bank some gains.Good to read another broker think LGEN is expected to be a long term success story, it is no less frustrating to see the sp of a fundamentally good stock sawing between 275p an 250p.I will be back when the sp is ridiculously cheap again.
IOMINVESTCOM
19 Apr 2018
L&G poised for long-term growth, says Berenberg L&G poised for long-term growth, says BerenbergInsurer Legal & General (LGEN) is set for long-term growth after shedding the baggage of old legacy businesses, says Berenberg.Analyst Trevor Moss retained his ‘buy’ recommendation and increased his target price from 301p to 334p. The shares rose 1.7% to 274.3p yesterday.He said the insurance giant ‘continues to reap the benefits of its focused strategy’ that has seen it allocate capital to ‘what they are good at’.‘Unlike some other companies in the sector, any baggage relating to previous strategies and legacies has been eradicated and the disposal of legacy insurance liabilities in December to Swiss Re was the final part of this completed,’ he said.‘The company is pointing in the right direction and has a strategy that we believe will continue to deliver genuine growth into the long term.’[link]
paul1945
23 Mar 2018
Re: Topped up on a few iom just + a few with cash from av sale
IOMINVESTCOM
23 Mar 2018
Topped up on a few Bought a few more at 2.535 with 6.05% yield due 7/6atb
Chicken Lips
15 Mar 2018
Re: Cala I think you only need look to Carillion to see how quickly the diversified business model can unravel the component parts. A complex structure is an opaque structure. It might be a pee in the ocean for L&G, but it just seems and odd move, an additional business - onto of the proven business.
Hydrogen Economy
15 Mar 2018
Re: Cala It is an interesting move for L&G, as the differing views here reflect there are significant concerns and risks but also significant potential.On the risks side:- -Businesses, especially big ones have poor records diversifying into completely different businesses. Despite recent great markets, house-building is not 'simple' as Bovis recently proved delivering late with many quality problems.-Skills availability was tight and not going to be easier if all those skilled craftsmen head back to Poland etc. That hits costs, delivery and quality -Housebuilding has been racing ahead but is about to see higher interest rates, prices tailing off and falling in some areas. Most of us have seen companies rise and fall through the cycleOn the positive side:--Modular construction is the way forward for the industry, easier to train labour, lower costs, easier quality control, less weather impact.- Cala is 600m capital out of 15 Billion, much easier to ride out a down-cycle and add land bank and acquire competitors ready for the upswing. Also high interest rates should push up L&G's core earnings, to soften any weakness from Cala. -The lack of available housing and the ability to build for rent as part of the L&G portfolio through the cycle reduces the risk of Cala's factories and sites sitting idle.On balance, this seems like a good move, short term market still looks profitable, the L&G structure should let them take a long term view to benefit shareholders and people who want to buy or rent affordable housing. I hope so, this is one of my bigger holdings.H2
BeaglePup
14 Mar 2018
Re: Cala I think this is a shrewd move to get more benefit from Build-to-Rent, to service the annuity requirements. Cala is good at Affordable housing, I think that makes things slot together well. (IMHO)
Boring Bernie
14 Mar 2018
Re: Cala Chicken Lipsre "I still think this is a distraction from core business"Core business ain't what it used to be mate.L&G are no longer principally an investment manager / insurer. They are principally looking after retirement funds, with investment management / insurance and capital projects being roughly equal, but a fair way below the retirement side.Some of the capital projects ( including house building ) are presumably being used to produce an income for the annuities for the retirement side, so the business is far more complicated, and more diverse than it was say ten years ago.Obviously, as well as diversifying the business, that change in the business model has introduced new risks, one of which is related to Capital Projects in general and house building in particular. So far though, they seem to be making a decent fist of it, though there's always a chance it could all end in tears.You pays your money, and you takes your pick !
Chicken Lips
13 Mar 2018
Re: Cala Well the announcement has led to a 2% drop in the SP.I still think this is a distraction from core bu
stout-hart
13 Mar 2018
Re: Cala This may be a new takeover, but it’s not new activity. L&G have been developing prefab modular home production for some while now: [link] think it’s an interesting investment strategy, exploiting a significant supply gap. There’s no need for them to share the profits with a conventional builder. It also sits well with the government and the environmental lobby. Yes there’s some risk, but this is hardly a radical departure. IMO of course.
Chicken Lips
13 Mar 2018
Re: Cala Must admit not sure why L&G wants to become a house builder rather than fund someone else. There seems to be some profit for now in full ownership but strategically it doesn't seem like a bolt on to investment and insurance, but a new business model. The fit could be the commitment to social business model but this is a wholly new option surely.Bemused
tejo
13 Mar 2018
Cala L and G are now into direct building which is a concern. Lovely company but if they get into construction I will be out.
Chicken Lips
09 Mar 2018
muted reaction- fastest growing G7 nation to one of the weakest The UK economy has started the year on a disappointing note, with the construction sector slipping into recession, manufacturing output almost flat-lining and the trade deficit widening by £600 million.Britain went from being the fastest growing G7 nation to one of the weakest last year as the impact of the Brexit vote weighed on consumer spend and business investment, while other nations enjoyed a global upswing in economic growth.The latest figures from the Office for National Statistics show that the Brexit vote is having a particular effect on the construction sector, with output shrinking for nine consecutive months and placing the sector in recession. The amount of commercial property work is falling as clients shy away from committing to big projects that can take five years to complete in the face of economic uncertainty.The Office for National Statistics said that construction output in the UK had fallen at the fastest annual pace in January since March 2013. Output was significantly below economists’ expectations, falling 3.4 per cent between December and January and dropping 3.9 per cent on an annual basis.Sorry to be a worrier[link]
Chicken Lips
09 Mar 2018
Re: muted reaction I think the elephant in the room with L&G and Lloyds who are both UK focussed is the impacts of Brexit on financial stocks and markets. The europeans are saying that financial passporting will end, and no trade agreement to include financials. This could obviously be a hammer blow if it pans out.Its a crystal ball we all need right now and as with all uncertainties there are many medicine men (Gove, Johnson, Hammond, Davis - don't trust any of them) out there with the 'end of the world' A-boards.My biggest holding by a long way right from the financial crisis, which I had had the b.. to get more and its for the slow growth (I hope - it would appear stella results make for tiny share growth) and divi. However a UK focus may prove to be a restraint on divi growth.I think the bigger brake lever is Europe otherwise this would be flying.This year looks like a flatline for the SP unless there is a tailwind to the result
Boring Bernie
08 Mar 2018
Re: muted reaction Re"... for the muted reaction is that after the big percentage gains in revenue and profit, we come to the dividend where the 7% increase which appears miserly"For me, the important info in the report was :-Earnings per share excluding mortality release and one-off US tax This FY : 23.10Last FY : 21.22% increase : 9So I don't think the increase in the divi is miserly, it just reflects the fact that the US tax is very much a one-off, and the mortality release is also very likely to be a one-offOn the 23.1p eps, we currently ( sp is 264p ) sit on just under 11.5 times earning.We're growing at ~ 9% so have a PEG of 1.25 and a nice chunky yield as well, so I'm hoping for a combination of sp growth and divi of ~15% / year over the next few years.All over things being equal, If the sp isn't close to 300p before the end of the year, then I'll be disappointed. But, I've said that before on this board,and then been disappointed
