Saga shares

noelphobic

I've got home insurance with Saga and received a letter today to say they are thinking of floating on the stock exchange. At this stage they just want to know who'd be interested and what level of investment they would consider.

I've had my fingers burnt in the past with shares - too heavily invested in banking shares, my own fault. However, I am currently living off my redundancy payment and have no income other than the pathetic amount of interest I am getting on my savings. I am therefore wondering whether it might be a good idea to put a smallish amount of money into these shares, if and when they become available.

No idea whether this would be a worthwhile risk and wondered what others thoughts are?

bigadaj

It's currently owned by private equity. So whilst not being guaranteed they do have a history of not listing at particulalry good value.

If you are a new investor then do some reading and probably look at investing in general tracker funds or maybe income funds, though your capital will go up and down you can get a good return over several years.

Linton

Putting all your invested money into one share is a bad idea as if that one company runs into difficulties you could lose all, or a significant amount, of your money. It is better to start with very broad investments, such as global funds which invest in hundreds of different companies.

Any investment yielding significantly more than bank interest will be volatile. So it is considered sensible to plan to hold for at least 5 years by when there is a good chance of you ending up with more than you started. In your case where you are depending on your savings for day to day living do you have enough to support yourself for 5 years and make a worthwhile sized investment with the money left over?

patientperson

Saga along with the A.A. (cars) are owned by Acromas.

Link for reading .. existing cutomers promises.

http://www.dailymail.co.uk/news/article-2559905/Saga-shares-giveaway-Stocks-3-million-customers-boss-set-210-million-giveaway.html

noelphobic

Linton wrote: »

Putting all your invested money into one share is a bad idea as if that one company runs into difficulties you could lose all, or a significant amount, of your money. It is better to start with very broad investments, such as global funds which invest in hundreds of different companies.

Any investment yielding significantly more than bank interest will be volatile. So it is considered sensible to plan to hold for at least 5 years by when there is a good chance of you ending up with more than you started. In your case where you are depending on your savings for day to day living do you have enough to support yourself for 5 years and make a worthwhile sized investment with the money left over?

I definitely don't have enough money to support myself for 5 years but I am looking for a job at the moment.

typistretired

You have nothing to lose by returning the form as it is not binding. They did a similar thing years ago and then decided not to float the shares.

torbrex

I too got the initial letter and registered my interest.

A second letter came today and it seems they are moving ahead' with it this time (although there is still an 'if' in the statement) and the minimum investment is to be £1000 with payment by debit card allowed online up to £10,000, if a higher investment is wanted then it is to be done by application form and cheque through the post.

torbrex

Prospectus arrived this morning.

Kazsioned

HI, I've had a form to buy SAGA shares but before I invest I am researching whether it is a good investment? Can anyone on here tell me whether this is a worthwhile risk to buy Shares in SAGA?- BTW It says that if you keep the shares for one year you get one free share for every 20 you have bought . Is this a good offer?
Thanks

doe808

What is your risk strategy? How does it fit with the rest of your portfolio?
With all due respect, I'm not sure how anyone can evaluate the risk element without knowing anything about your situation.

Kazsioned

HI Doe808,
Not sure of what you mean- but I'll try to answer- Risk- cant take too much risk - I have redundancy and waiting for my works pension to come. I was thinking of about £1000- £3000 as an extra investment for my pension. I think I can tie it up for about 3- 5 years.
I am 63 and as mentioned about have just retired( made redundant) I am paying off my mortgage of £85,000 with my pension/redundancy and converting some of my pension to cover this- leaving me with about £7000. Hope this is enough info -if not what other info would you need? Thanks,Karen