Saga share offer

Archi_Bald

Humberstone27 wrote: »

Too late ! According to yesterdays report "the £550 million shares have already been oversubscribed"

you got a link to the report, please?

Humberstone27

jimjames wrote: »

It doesn't take much of a drop to realise you now have 30% less than the amount in your savings previously.

If you are seriously buying Saga shares to get a better rate than bank savings and have no other shares then I repeat my previous comments that I think that is crazy.

If you want better rates you can get 5% from current accounts or over 4% from equity income funds. At least with funds your money is spread over many companies so you are not tied to the fortunes of just one company.

I just hope you are not back here in a few months complaining how much you have lost buying shares, but good luck.

For your interest I opened an account with Saga Investment Direct in June 1998 to use their share dealing service with the lowest commission at the time for buying & selling shares on the LSE.
16 years is quite a long time so I am not a newby !

Humberstone27

Archi_Bald wrote: »

you got a link to the report, please?

Tuesday May 20th Daily Mail "City & Finance" Page 67 "Saga's pledge to City institutions".
Makes interesting reading. quote from letter sent to 40 City Investment Houses

Archi_Bald

LOL, it's in the Daily Mail so it must be true. I wonder why none of the reputable finance columns reported the oversubscription?

MABLE

My friend has just received her home insurance renewal quote from Saga.
£386 for the year. Went on a comparison site for her and for the same things she has chosen one for £134 per year and if she makes a claim other than subsidence she would pay £150 as against Saga wanting £400.

Also she has been with Saga for 6 years and never claimed.

jimjames

Humberstone27 wrote: »

For your interest I opened an account with Saga Investment Direct in June 1998 to use their share dealing service with the lowest commission at the time for buying & selling shares on the LSE.
16 years is quite a long time so I am not a newby !

That's fine if you know what you are doing.

Sadly many applying don't know, hence the kind of questions that have appeared here as also appeared for the RM sale. Buying a single share is not the sort of investment that is in any way comparable risk to getting interest on savings in a bank.

Humberstone27

Archi_Bald wrote: »

LOL, it's in the Daily Mail so it must be true. I wonder why none of the reputable finance columns reported the oversubscription?

Oh! ye of little faith ! I am in it for the long term so I will check back with you in about 12 months, from my yacht in the med or may be my rowing boat in Hyde Park. Its all part of life's rich pattern.

jayship

Yahoo finance page has just posted a message from Reuters that Saga shares will be priced @ 185-205p as the company is sensitive to ensure that the float is successful. To read the full version google Reuters news

mystic_trev

jayship wrote: »

Yahoo finance page has just posted a message from Reuters that Saga shares will be priced @ 185-205p as the company is sensitive to ensure that the float is successful. To read the full version google Reuters news

Hardly a ringing endorsement of the Company. It may start trading at a small premium, but some of the Institutional Investors are very wary.

The valuation is extraordinary, it's a joke," he said. "I wouldn't touch it at all. If you value Saga's profits in the same way as another insurer such as Direct Line, its valuation would be half of that at which it is coming to the market. Some of the research reports are insane, comparing Saga with highly rated consumer companies." He added that the company still had very large borrowings.

worldtraveller

According to The Telegraph and a "City source", the shares will be priced at 185p.

Saga shares will be sold for 185p, the very bottom of the price range, in the company's flotation on Friday.

The price represents a drastic scaling back of expectations – it is almost 25pc below the top of the original price range of 185p-245p.

A City source, speaking on condition of anonymity, told The Telegraph: "The guidance I have had is that the [order] books close at 3pm and the shares are expected to price at 185p."

The Telegraph