Saga share offer

bowlhead99

Yeah, I was thinking of that one, I've linked XKCD here before!

Paperweight

So many posters getting upset because the Saga offer will not be as good as the RMG one. So what? The RMG offer was a once in a blue moon opportunity with virtually guaranteed profits. You may never see its like again in your lifetime.
Others are getting their smalls in a twist about the offer price not being fixed before the closing date. As has been posted by others (and ignored by many) this is the norm (including with RMG). And the other big "worry" appears to be that Saga has debt. All companies have debt! Saga's is a bit high at the moment, but will reduce significantly after the sale.
So there is some risk involved, but that is natural. There is always risk when you buy stocks, shares, bonds or even put your money in the bank. The question is, how much risk is there and what is the potential upside.
If you want to buy shares for a long term investment, then Saga should be considered and weighed up against all of the other shares available and, if bought, should be part of a larger portfolio.
If you are looking for a short term flutter however, then, RMG apart, Saga is one of the better ones. Fundamentals aside, there are 2 good reasons why this share offer is likely to be a good one. Firstly, a very large proportion of the new Saga shareholders will be current Saga customers. Saga will not want to upset these people at any cost and will be doing their utmost to ensure that the sale is a success and the shares start trading above the offer price. Secondly (and I think this is a real biggie even though I haven't seen it mentioned elsewhere), a larger proportion of the shares will be going to the public than is normal which means that the big financial institutions will probably not be able to buy as many as they want in the offer. They will therefore be buying after the float as they will want to have the right proportion of Saga shares in their portfolios. Institutional buying is what will push the shares up. Furthermore, if, as seems likely, the Saga share price rises a little, it may well join the FTSE 100 when the big institutions will once again be buying so as to increase their percentage holding in their portfolios.
Yes, it is gambling. But the odds look very good to me.

EdGasket

Saga reviews - not good:

Saga car insurance 1.6 / 5
http://www.reviewcentre.com/reviews145431.html

Saga home insurance 1.1 / 5
http://www.reviewcentre.com/reviews84858.html

The other areas are not good either though reviews are few so not trustworthy.

dealsearcher

bowlhead99 wrote: »

I appreciate that arguing with an anonymous stranger on the internet is one of the most futile things a man can do.

Like you, I'm not subscribing.

So - not only pointless arguing with each other but we are not buying anyway! By the way I think we were both right really.


And I can't even get the smilie to work either ...

sabretoothtigger

The Questor column that researches shares suggest this company is being valued at 25pe with a large amount of debt still after the IPO and companies in the sector cheaper.
Its nothing to jump at, you have one real reason to buy on an IPO especially which is growth.
Why is this company going to now grow more with the addition of shareholder funds, whats their leverage in the market that gives them an advantage others cant offer.

As a brand, I'd rather have apple or samsung. Is Saga worth a premium

mystic_trev

http://www.telegraph.co.uk/finance/markets/questor/10828284/Five-reasons-not-to-buy-Saga-shares.html

MABLE

mystic_trev wrote: »

http://www.telegraph.co.uk/finance/markets/questor/10828284/Five-reasons-not-to-buy-Saga-shares.html

Of course the Daily Telegraph never get it wrong do they!
By me taking notice of them I missed out on Merlin Entertainments.

Remember a lot of people applying for Saga shares will be their customers as well and I am sure it will be in Saga's interest to keep them on side.

However I have already made up my own mind and will be given this new IPO a miss.

brasso

MABLE wrote: »

Of course the Daily Telegraph never get it wrong do they! By me taking notice of them I missed out on Merlin Entertainments.

Have you missed out much with Merlin? Current share price is about the same as the launch price, 6 months ago.

mystic_trev

It's always a case of DYOR - I just posted the Telegraph article as additional info. Funnily enough I do know a little bit of the circumstances regarding the sale of SAGA by Roger De Hann ten years ago i.e. the current owners seem to have squeezed most of the value out of it. One of the reasons I won't be investing.

MABLE

brasso wrote: »

Have you missed out much with Merlin? Current share price is about the same as the launch price, 6 months ago.

But at one point I believe without checking they were showing an increase of about 50 pence a share.