Saga shares

DavidRag

In 2014, we bought 720 Saga shares for around £1500.  The last communication by letter we had from Saga was in June 1015 when we were informed that we had a free share allocation so now have 756 shares.  I am aware that the share value has decreased, but have assumed that the shares are still worth around £800.  As we are about to buy a house, I need to consolidate my savings and so wished to sell these shares.  I discovered that a company called Equiniti now administers these shares, so I got an activation code for their site.  Today I gained access to the site to discover we own 50 shares worth around £55.  When I phoned Equiniti they told me that in 2020, Saga reduced share holdings, so that for every 15 shares I hold, I now have only 1.  In other words, I have lost 14/15ths of my investment.  Is this really right?  Can they do this without informing me?  It feels like something underhand or even dishonest has taken place.

[Deleted User]

Hi,

seems it was approved by shareholders, LOOK.

eskbanker

Nothing 'underhand or even dishonest has taken place' - the loss in value of the holding isn't due to the 2020 reorganisation but the huge decline in share value before that (they'd dropped by about 90% in the couple of years leading up that reorganisation, not entirely coincidentally).

The 2020 share consolidation would have given you one new share per 15 old ones, but valued at roughly 15 times the old value, so there wasn't any loss specifically arising from that.

wmb194

You can work through the company's official announcements here:

https://www.investegate.co.uk/Index.aspx?searchtype=3&words=Saga&pno=1

fifeken

I got emailed about the change although it was in Jan/Feb 2022, not 2020.  A new shareholder reference was supplied then which allowed me to access the new site.  You should have received the same I imagine, but maybe gone to spam or an old email address.

sevenhills

https://themoneycog.com/articles/saga-share-price-forecast-will-it-ever-recover-from-the-pandemic

Richard1212

When you have shares you need to keep up to date with all info regarding them, either by yourself if you have just a few; or by employing a portfolio manager if you own many shares in many companies.

Albermarle

Richard1212 said:

When you have shares you need to keep up to date with all info regarding them, either by yourself if you have just a few; or by employing a portfolio manager if you own many shares in many companies.

It also shows why just investing in one individual company share  is rather risky.