Saga shares

[kaymar]

What do we think - are they worth a punt as an "eligible customer"?

[emjay45]

I don't know Kaymar, but you've got me thinking. It would be good to find out.

[BrianI]

The offer closes on 20th May but may close early.
Minimum of £1000 investment required.
Shares start trading on 23 May.
Brian

[johnds]

Seems that you will only find out the price AFTER you have bought

[anneed]

I was going to go for this but have changed my mind after listening to last week's Money Box programme on Radio 4. The 'expert' guest said that it would be a big mistake to think it would be like the Post Office shares bonanza as Saga is a private company and won't be under valuing its shares. He said similar offers in recent times had actually resulted in losses for new share holders.

The programme is of course hosted by Martin Lewis and he made a point of saying that he wrote for Saga Magazine. He didn't comment personally on the Saga offer but I felt the very fact he had the expert with a negative viewpoint showed he was trying to urge caution.

[Manoverboard]

Read a report yesterday that suggested that they need the dosh to pay for a huge £700,000,000 shortfall in their corporate finances, twill also invent a few extra FAT CATS ... if true then best, me thinks, to give it a miss.

[gfwgfw]

This makes me so sad . . . cus Sidney Isaac De Haan, OBE was once a business associate of mine many years since

Sid was a visionary

Revealing the need for the old "farts" needs for holiday of the past their sell by date, starting modesty in his home town of Folkeston to a best seller of the Saga brand

Betty and I had the privileged of Cruising on Ruby, sadly the last cruise for the now frail Sidney

His empire was passed to his son, who quickly sold out to the AA

I am taking a pass on this going public offer

The Very Wise Giant of Cerne Abass

[wolfie]

Seems that you will only find out the price AFTER you have bought

The low and high price that the shares are expected to be sold at is in the prospectus that we received. It's not a huge margin between the two prices.

[johnds]

Well define your own "huge margin".
The prospectus, which I had studied in depth says " The price at which the Shares are to be issued and sold in the Offer (the “Offer Price”) is expected to be between 185 pence and 245 pence per Share." It goes on to say that the price could be higher but if it was then potential investors would have a statutory right to withdraw.

In terms of an investment decision I do regard the 30% potential difference as very significant and a deterrent. I also regard the method of sale as very unusual.

Perhaps it will deter the bulls but it ain't necessarily so.

[Kendhni]

I was tempted but just haven't had time to do any proper research ... probably won't take a flutter.

[kaymar]

I was tempted but just haven't had time to do any proper research ... probably won't take a flutter.

I think that's the problem, Ken, it's probably an above-average risk. I'm leaning towards giving it a miss.

[Kendhni]

But in the back of your mind do you not maybe think you may be missing out ... I do

[kaymar]

But in the back of your mind do you not maybe think you may be missing out ... I do

Yes, probably. I don't think there will be much of an instant profit to be made, if any (the venture capitalist owners will make sure of that when setting the price) but the return should be reasonable and the 5% bonus at the end of year 1 adds to the attraction as a longer term investment. I used to think that I was undecided but now I'm not so sure

[emjay45]

I've been reading up about these shares and I don't really think it's worth the risk.

[kaymar]

So, deceided to go for it, applied for £1500 each, got 630 shares @ 185p, £1165 each. And they've gone up a bit. Happy enough