Hargreaves Lansdown flotation

olivert

i am having a go-they are talking about a grey market of 155p-160p

TheDink

markj1 wrote: »

I have just over £6000 cash in a HL SIPP and I have not been invited to apply for shares. Is there anyone on here who did register but does not want to take up the offer? Is it possible for me to apply instead?

Many thanks

Mark

Unfortunately not - you can only apply by logging into your H-L account on line - you will only have the link if you were invited, and registered interest. The T&Cs also stated that invitations cannot be transferred.

iantheman

Thanks for all the comments from various contributors.

Today by e-mail we are being "pushed" to respond for shares, but like a few others I am disinclined to put minimum £5k into one company share. I do use HL quite a bit for fund investments, but don't hold indiviudual company shares. I do think the HL share price will rise from issue for a month or two, then will be subject to the market influence. I wish I had the spare 5k to go for it as a punt, but I don't. Ho hum.

mutley74

ic has a good article on them recommending as a buy. cant produce here as its copyrighted.

Grey_Squirrel

Hello, I've just enrolled on this site initially to join in the discussions on the Hargreaves Lansdown float.

My wife and I are both clients of HL and have both registered for the IPO with £5000 each in our share accounts.

I have been a client of HL for seven years and I find them an excellent company, such that we have transferred nearly all of our PEPs and ISA's to them. I stopped investing in individual shares six years ago and decided to concentrate on funds.

I am undecided on whether to apply for the offer. I have read the prospectus, looking for a compelling reason to invest, but I have not found it yet. I was hoping that we "privileged" clients might be offered some incentive such as a discount.......but, sadly, this is NOT the case. So, we're in the market, along with everyone else, not much to gain for a hopeful punt except saving on stamp duty and dealing charges. Unless, of course, the institutional investors force the price down.

Unfortunately, this is happening at a time when the markets generally are riding high on the back of M & A rumours, and I, personally, are expecting an imminent correction.

Just to add something to what Browntrout had to say.......
According to the prospectus HL are looking for a minimum of 39,526,575 shares allocated to the Qualifying Offer ( clients and employees ). That's a third of the total shares on offer. That offer would be fully subscribed if 11,857 people each invested £5000 ( assuming a mid price of 150p). That's less than 4% of the client base of 350,000.

I have read that the company has been valued at 14 times the projected earnings for 2009, which is fair enough I suppose, but the present price seems too high to me.

At the moment The Times suggests that the P/E ratio is 19, but they recommend subscribing long term on the basis of improving returns.

Today's Working Lunch had a few moments on the subject, and suggested it might be a better idea to buy in the secondary market, not the IPO. Food for thought.

Before investing I usually ask myself whether this is the BEST I can do with my money. I'm not sure about this one.

Since all of the monies raised are going straight into the pockets of Mr. H and Mr. L and a few other senior managers, I'm sure they will not go hungry, and I'm wondering what appetite will remain for the business.....but I APPLAUD them for their success.

Unfortunately they have not presented their clients with offer they cannot refuse, although I'd love to support them and the best of luck to all who do.

Browntrout_2

Grey Squirrel, thanks for that, it does seem highly priced and good luck to all. I was going to stag it as I would not want to hold a single company share either.

This could be a textbook case of 'sell in May and go away', and in this case the stockbrockers are actually sellling themselves!

Very clever getting us all excited and hunting for cash to put into our Vantage funds though!

mroller

Browntrout wrote: »

Very clever getting us all excited and hunting for cash to put into our Vantage funds though!

This is what I disliked most about the whole thing. They were pushing me to top up my account a month ago (so they can earn interest on it)

Midnight_Cowboy_2

The latest Investors Chronicle article mentioned above is here:

http://www.investorschronicle.co.uk/content/free/2007/News/news_20070504_2.html

It's tone is more positive than last weeks article. Two things strike me from reading this:

A Good Thing: Many funds will buy the share when it enters the FTSE 250 in September. That should be good for the price.

A Bad Thing: HL's fortunes are so tied to the performance of the stockmarket as to be 'geared' to it, ie. if the stockmarket falls, their shares may fall even further as their prospects also diminish.

Hmmm, have to confess I'm still very undecided about this float...!

Midnight_Cowboy_2

ajmace wrote: »

Midnight Cowboy, I'm glad that you have
recognised that Hargreaves-Lansdown are a major supplier of financial saervices, especially ISAs and SIPPS.

I never said that they weren't!! I just said that they don't have a monopoly - which is true!

ajmace wrote: »

Have faith in the product - if you can get some shares via an invitation from H-L take it, it may not be as good as the Government flotations in the 1980s but it will surely be a sound investment over the medium term.

We agree on something - I don't see an opportunity for a quick buck here, but as a long-term investment I think HL is a sound business. But the most positive thing I can say about the flotation price is 'not exactly cheap'.

joesan

Ihave to agree HL may have a good portion of the cashback fund providers market. In terms of fund providers though it has a very small %..... You have to remember that i dare say 90% of people who buy funds dont buy from a cashback provider. If in the future other providers decide to offer cashback how would that affect them?

Their future profits will be determined in how they promote their service and expand it. Is any of the float money going back in to help the business ??

I think if the price is 140-160 its probably best to wait and see what happens