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Wheresthejam .
Posted: 08 February 2025 16:16:27(UTC)
#331

Joined: 27/01/2025(UTC)
Posts: 54
Dexi;333637 wrote:
Last time I looked , LGEN seemed about the same as the FTSE 100 for total return , so why not buy a FTSE ETF ? - same result but more diversified with less stock-specific risk .


Not sure, and not sure if I've done this right either, but I decided to compare LGEN & ISF (dividend paying FTSE100 etf) over a 6 year period to take into account the large drawdowns and related dividend reductions. Obviously the numbers will be different for different periods.

LGEN
02/01/19 open: 229.5
31/12/24 close: 229.8
Div paid + price appreciation = 111.12 + 0.3 = +48.5% against open

ISF
02/01/19 open: 746.8
31/12/24 close: 793.1

Div paid + price appreciation = 165.679 + 46.3 = +28.4% against open


I didn't take into account the stamp duty for LGEN but it seems a + for LGEN though.

However, looking at the charts, ISF drawdown during COVID ~35%, LGEN ~55%

LGEN more risky but the reward was there it seems.
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Wheresthejam .
Posted: 08 February 2025 16:31:03(UTC)
#326

Joined: 27/01/2025(UTC)
Posts: 54
MarkSp;333630 wrote:
Wheresthejam .;333602 wrote:
MarkSp;333599 wrote:
When u get your calculator out, the deal delivers little but loses 20% of future US Protection revenues

LGEN needs growth and it hasn't got it.

You could have got stock in the opening auction at 266 and sold them for 240 eight hours later.

thats pretty transformative.... wine into water


From the announcement link posted earlier:-

"L&G therefore expects to return the equivalent of c. 40% of its market cap to shareholders over 2025-2027 through a combination of dividends and buybacks. The remaining net proceeds from the Transaction would be retained and invested to support the delivery of the Group's growth strategy."

I take it you are not a believer in their growth strategy then? :-)

I'm assuming they are looking to build on the recent investment in Taurus, and use the war chest to continue to expand their international portfolio/ US real estate.




If you look at their current divi and their 2024-7 commitments, factor in the buy back that is committed reducing the shares that will be available for the div pool I think there is an additional 2-3p over the current commitment and they are minus the US Protection business and 20% of the US PRT futures

This looks more like a financial game and managing the solvency ratio than anything that is business "transformational"

The three positives for the Sp
the partner is looking to buy 5% of LGEN in the open market
there is an implied valuation on the US PRT business that you might be able to read across
there will be approx 7% shares reduced from the BB

i don't think that whether the div is 20.6 or 21.4p will make a lot of difference

I was all excited and then I got to the core question..................................... AND?

So I took the money and watched the balloon deflate.



On the whole I do not disagree with you, it's why I have been swing trading this stock to keep reducing my avg cost. Currently I'm sitting on 10k shares at a cost of 22751, but it was a lot higher at one point.

The positives you note are positives for the near term price, hence I continue to hold my core position. I could sell out for a 5.7% profit based on Friday's close (which equates to the dividend they should pay in April) but I think I can squeeze out more :), and I await their next "deep dive" to see what they will articulate around growth.

Swing trading LGEN & PHNX (which I tend to completely sell) have been good to me thus far!
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Tug Boat
Posted: 08 February 2025 16:33:11(UTC)
#334

Joined: 16/12/2014(UTC)
Posts: 2,015

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Sold LGEN a few months ago @240 +£ a few k. Had 3 years of divi. £6k. All estimates, but you get the idea.


What’s not to like?

Wait, let it drop, buy, get the divi, let it rise, sell.

I know it’s trading, but LGEN has done this for a decade.
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2 users thanked Tug Boat for this post.
Wheresthejam . on 08/02/2025(UTC), ANDREW FOSTER on 10/02/2025(UTC)
MarkSp
Posted: 09 February 2025 07:29:05(UTC)
#335

Joined: 02/02/2020(UTC)
Posts: 2,176

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Was thanked: 5797 time(s) in 1715 post(s)
I am with you Tug

I have been trading these for years, they are one of my Chickenlicken shares I buy whenever the sky has fallen in.

It has been a great stock for me - loading up in the 200-220 range and selling for 240-250+

However, it could just as easily be turnips. For LTHs, the stock has been a complete mare.

I try to avoid the may XD as the capital fall exceeds the divi and it is a slow road back.
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2 users thanked MarkSp for this post.
ANDREW FOSTER on 09/02/2025(UTC), Phil 2 on 09/02/2025(UTC)
Ramondo
Posted: 09 February 2025 08:04:08(UTC)
#336

Joined: 20/10/2018(UTC)
Posts: 700

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Was thanked: 796 time(s) in 354 post(s)
I too have held L&G for many years, only buying mainly in order to reduce my average price paid.
I've just updated my spread sheet and it tells me that I am in profit for this share to 21.6%.

I also hold three other shares, both N/Grid and Tesco are in my top 4 holders with regard to profit, mainly due to dividends, my other share holding is Lloyds which is in only in quite low profit, I continue to hold in the hope that the current financial situation will help Lloyds more than other banks and increase my profits in this share.
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2 users thanked Ramondo for this post.
Micawber on 10/02/2025(UTC), ANDREW FOSTER on 10/02/2025(UTC)
Ian Eccles
Posted: 07 March 2025 12:13:50(UTC)
#337

Joined: 04/07/2021(UTC)
Posts: 1,076

Thanks: 307 times
Was thanked: 1815 time(s) in 750 post(s)
L&G has today announced the acquisition of the first Build To Rent (BTR) site in its partnership with Nest and PGGM. This follows the recent launch of the partnership to build thousands of high-quality rental homes, seeking to deliver stable financial returns for institutional investors. This investment expedites the capital deployment of the portfolio expected to grow up to £1 billion in the coming years.

The development, known as F1, will deliver highly sought-after, sustainable rental accommodation in the New Jackson neighbourhood of Deansgate, Manchester. In recent years, Greater Manchester has experienced rapid population growth and increased employment opportunities, requiring accelerated delivery of housing to keep pace1 with demand. The Greater Manchester Combined Authority stresses that the supply of high-quality housing is a critical factor in sustaining the high levels of economic growth and productivity in the city2

They have a prime site, already full of apartments and fast becoming a trendy part of Manchester.
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3 users thanked Ian Eccles for this post.
Sheerman on 07/03/2025(UTC), Busy doing nothing on 07/03/2025(UTC), Phil 2 on 07/03/2025(UTC)
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