Saga shares

Kazsioned

HI, I think what I need to know is do people here think the Saga shares will do well? will it be in the short term or do you have to leave them for a longer term? say 5 years to see returns?

2010

Kazsioned wrote: »

HI, I think what I need to know is do people here think the Saga shares will do well? will it be in the short term or do you have to leave them for a longer term? say 5 years to see returns?

https://forums.moneysavingexpert.com/discussion/4962259

youngsaver1995

Kazsioned wrote: »

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

Hi Karen, I'd say investing would be a gamble, and judging by your attitude to risk and current situation, I would say that investing wouldn't be a wise decision. Investing as part of a diverse portfolio of shares may be a good idea, but it does not sound like you have this in place and probably shouldnt be investing a large sum into only one company.

Personally, I think that many might view this as a worthwhile investment following the success, and 'quick-buck' that people made, on the Royal Mail IPO. Unlike the Royal Mail flotation, which was sold off by the Government, Saga is being sold by a Private Equity Group, and this means that the share price is likely to be much closer to the actual value, and not undervalued like with RM, as the Directors of Saga wish to raise as much money as possible. Saga also wants to use the flotation to pay off some of its debts, and even after doing so will have about £700 million in debt. Whilst its not suprising that they have some debt, this seems like a lot for company of its size, and it also means that the company wont be using the IPO to fund future investment, which would be a more attractive proposition.

These are just my thoughts. I could be wrong, but in my opinion, it would be a mistake for you to invest, and I certainly wont be.

Kazsioned

Thanks for the link 2010 I'm reading the forum now and gleaning info :-)

Kazsioned

thanks Youngsaver 1995 - :-)

doe808

Kazsioned wrote: »

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

I would agree 100% with what Youngsaver said above. Its good you are researching, but what I think many of us are worried about is that people think that Saga will be RMG Part 2. IMO it certainly wont be, but the amount of people turning up over the last week or so on these boards asking "will we make money on these", "how will these perform?" gives me cause for concern.

If you cant take too much risk, then you certainly shouldn't be purchasing shares in a single company- rather you should be looking to spread the risk.

If you are going to buy in a single company at initial offering, make sure you understand the market they operate in, their numbers, and it is critical that you read the offering documentation.

For clarity I wont be purchasing in the IPO (I've only ever been involved in 2). And I only hold shares in 9 individual companies- all in sectors that I have ether worked in, or spent a lot of time researching. Even then they must fit in with my strategy, otherwise I wont buy.

Good luck whatever you deside

torbrex

I was innitially thinking of a £2000 investment for aprox 10 years but after doing some reading up and with some of the things being said on here, I'm having second thoughts.
It would not be a total loss for me if this investment crashed but I feel that the returns over the 10 year period might not be worth my while based on projected dividends and growth.

doe808

torbrex wrote: »

I was innitially thinking of a £2000 investment for aprox 10 years but after doing some reading up and with some of the things being said on here, I'm having second thoughts.
It would not be a total loss for me if this investment crashed but I feel that the returns over the 10 year period might not be worth my while based on projected dividends and growth.

It will be interesting to see how it performs, at any rate. Always think IPOs are a bit of a gamble, unless you know the market or can see some value. Personally I think Saga will do ok- but prefer to look at the figures in the market place after all the froth has died down

peppercat9713

I have just joined the Forum because I want to make a comment on something I just read on City a.m. site stating quote;
Saga customer base is considered the perfect audience for a share sale, given their age and wealth.:mad:
" The great thing about Saga customers is that their rich and old" said one person familiar with the plans.
How totally bigoted can you be. This person obviously does not live in my neck of the woods!! Must be from down South. We in the North do not have money to burn and are not rich oldies. I certainly could not afford one of the very expensive Saga cruises or St Lucia holidays (wish I could) and just moved our car insurance elsewhere this year despite of the fact my husband and I have many years no claims bonus it was expensive compared to the insurer we are now with. So if buying shares in Saga I will have to do my homework and give it careful thought. I'am a very young 65 so need to think about the future and make sure there are funds available for my impending old age which I don't consider I have anything like reached yet. If the person who made this comment is involved at all with Saga it would totally put me off any further idea's of possibly buying shares.
I think this is a bad attitude to take about people who could be a life saver for this company!!! How about you?.

puk999

peppercat9713 wrote: »

How totally bigoted can you be. This person obviously does not live in my neck of the woods!! Must be from down South. We in the North do not have money to burn and are not rich oldies.

While you are possibly right about being bigoted (or at least prejudiced), you're not helping yourself by immediately making statements about how people are in the South and North. Isn't that as bigoted?