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Keef
8th May 2014, 22:44
My saintly and long-departed mother-in-law used to refer to the company as "Send All Grannies Abroad".

Is anyone buying shares in it - now on offer?

G-CPTN
8th May 2014, 22:46
I never did like Sago - frogspawn . . .

Cacophonix
8th May 2014, 22:51
Keef you must look at the opportunities here (as an Anglican I am sure your Church will give you advice)...

Still as a man and (I am sure) a gracious pilot you surely must take an amused attitude here...

Caco

http://www.youtube.com/watch?v=csUXZngk99s

chksix
8th May 2014, 23:11
HrkVWVgwwfc
:E

Tankertrashnav
8th May 2014, 23:26
When I joined the Aircrew Association aged around 47 I started to receive literature from Saga re insurance, holidays, etc. (Says a lot for the demographic of the Aircrew Association!)

Considering they were supposed to be offering deals to senior citizens I always thought their prices very steep - insurance, holidays etc could always be found a lot cheaper with a bit of shopping around.

That said I have no idea whether their shares are worth buying.

Cacophonix
8th May 2014, 23:57
I never did like Sago - frogspawn . . .

Well then you never went to boarding school. Like this forum... no women at all... ;)

Caco

Krystal n chips
9th May 2014, 05:43
" Considering they were supposed to be offering deals to senior citizens I always thought their prices very steep - insurance, holidays etc could always be found a lot cheaper with a bit of shopping around.


TTN, you aren't going to like this.......but, we agree !.....they targeted a niche demographic and, to be fair, did it very well.

The advert for a certain river cruise company that sponsors certain repeats for example....apart from being vomit inducing and having the completely opposite effect in promoting their cruises....is aimed at the same market....and, as you say, they are expensive but now have a well established brand.

Might be worth looking at therefore for anybody with some spare cash.

Mr Optimistic
9th May 2014, 07:30
ERM doesn't it depend on the price. At some price anything is worth buying, even my advice.

Flap 5
9th May 2014, 08:32
For customers they get one extra share in twenty after a year of holding the shares. That equates to a notional 5% 'dividend'. You can get 5% with HSBC or Vodafone shares currently, and HSBC are looking particularly cheap at present. The share will be priced for Saga to get maximum return to deal with their debt. Not sure it is worth it. But I am usually wrong. :hmm:

Andy_S
9th May 2014, 08:38
Is anyone buying shares in it - now on offer?

I've just printed out the summary prospectus; not yet had a chance to read.

If the shares look like a good deal in their own right, then I'll probably take the plunge.

I'm also interested in the incentives on offer for shareholders. I don't yet qualify for a Saga holiday but will do in a few years, so if shareholders get a decent discount then it may be an additional reason to partake.

Andy_S
9th May 2014, 08:48
For customers they get one extra share in twenty after a year of holding the shares. That equates to a notional 5% 'dividend'. You can get 5% with HSBC or Vodafone shares currently, and HSBC are looking particularly cheap at present. The share will be priced for Saga to get maximum return to deal with their debt. Not sure it is worth it. But I am usually wrong. :hmm:

I believe that offer is aimed at 'eligible' applicants - those who can demonstrate they have previously used Saga services - and you would have to purchase the shares directly, rather than via a nominated stockbroker.

I'm not sure if the '1 for 20' is a one-off or whether it's given every year. As you say, it's equivalent to a 5% yield, but you'd still get the regular dividend over and above that.

modtinbasher
9th May 2014, 09:27
Sexual Activities Graciously Accepted

Flap 5
9th May 2014, 10:50
I'm not sure if the '1 for 20' is a one-off or whether it's given every year. As you say, it's equivalent to a 5% yield, but you'd still get the regular dividend over and above that.

It's a one off. I am not aware of any dividend. They are often not given in the first year.

mixture
9th May 2014, 14:29
Is anyone buying shares in it - now on offer?

In a word ... no.

Its about as an unexciting idea as the Royal Mail IPO was. :cool:

Just as with Royal Mail... what exactly are they going to deliver that will save their share price from merely chopping around and staying largely flat (or even going downwards).

Infact, I would put it to you that SAGA are in a worse position than Royal Mail because of they've always branded themselves as a limited customer base company (i.e. providing magazines and cruises to old farts)..... plus on top of that they're pretty much 100% UK centric. To significantly change either of those two elements would take a LOT of money and I doubt that's in their plans as they've already earmarked the few million raised from the IPO to help paydown their 1.2bn debt (technically their debt is larger, but they managed to palm off some of it to the AA) !

Infact if I were being very bearish I'd say much of the IPO is just an exit-strategy for the management team and/or private equity backers, related to the smelly debt package that's been hanging around like a stale fart for a few years now....see for example this Reuters article from 2012 (http://www.reuters.com/article/2012/09/25/us-acromas-loans-idUSBRE88O0Z020120925) which hints that back in 2012 the banks where having trouble finding buyers for the 4.8 billion LBO loan dating from the 2007 boom, and so they were forced to hold it ... until the time was right... which appears to be 2014 !

I suppose at least their OAP customer base might get a few dividends to help supplement the old pension, you seem to be in the right age group Keef. :)

MagnusP
9th May 2014, 14:36
I had rather hoped this thread would be about the rather lovely Sophia Helin who plays Saga in the Scandihooligan crime series "The Bridge", but alas, 'twas not to be.

Oh, well.

I've used Saga travel insurance for rather more years than I'd like and always find them competitive on price and helpful on the 'phone. That's the only product I use, though.

Andy_S
9th May 2014, 17:38
Just as with Royal Mail... what exactly are they going to deliver that will save their share price from merely chopping around and staying largely flat (or even going downwards). In fact, I would put it to you that SAGA are in a worse position than Royal Mail because of they've always branded themselves as a limited customer base company (i.e. providing magazines and cruises to old farts).....

If you read the prospectus, they make a fairly strong case for the business; strong brand, brand loyalty, favourable demographics through an ageing population, the fact that thereís no direct competitor. They also talk about expanding into new markets like retirement homes.

Basically, I think thereís a sound business there, but I donít think itís a fast growing business. The real attraction for me would be the dividends, but since there are several quoted blue chips with well covered dividend yields of 5% or thereabouts Saga would need to offer at least that. And thereís the issue. Itís not clear how many shares will be floated Ė itís expected to be between 25% and 50% of the total share capital - and the offer price range will be between 185p and 245p (but could be even higher). The final figures will have a big effect on the dividend yield, but wonít be set until after applications have been made for shares, so I just donít know what Iím getting.

Iím also not happy about the fact that no more than half the business will be floated; the remainder will remain in the hands of the venture capitalists who currently own it, and Iím not sure that their interests will coincide with my own.

Finally, I was disappointed that other than the one-off 1 for 20 free share offer, no shareholder incentives have been offered. Discounts on holidays or financial products would have sweetened the pill.

Right now, Iím unconvinced, but Iíll keep my eyes open for press reaction and broker comment over the next few days.

mixture
9th May 2014, 18:17
If you read the prospectus, they make a fairly strong case for the business....

(a) I gather it's 300+ pages long....
(b) Who writes the prospectus ?
:cool:

and the offer price range will be between 185p and 245p (but could be even higher)

My guess unlikely to be significantly higher because there's unlikely to be much demand from institutional investors given the large number of IPOs rushing to catch the market recently, so its going to be retail investor heavy.

We shall see..... I'm not going to put forward any more detailed thoughts at the moment... :)

RedhillPhil
9th May 2014, 23:04
Society of Ancient Grannies and Aunts. Used to use B.R. a lot for shifting their customers around - always a nightmare. Trains from Paddington to Paignton could be particularly onerous.

Keef
9th May 2014, 23:31
Yes, mixture, I'm in the right age group, so encouraged by you I decided to have a punt.

The prospectus sounds plausible and matches what I've observed of the company. They've insured my "little toy" car for the last two years, at better rates than the noisier insurers. £120 fully comp for a 2L sports car with two oldies driving it seems fair.

They are very good at junkmail, which to be fair they list as one of their assets in the prospectus.