ROYAL BANK OF SCOTLAND GROUP PLC is within a rising trend. Continued positive development within the trend channel is indicated. The stock has broken up through the resistance at pence 50.00. A further rise to 100p (1) is predicted in the medium term. The stock is assessed as technically positive for the medium long term.

Good luck -

Anyone got this today?
Direct Line Group plc has launched an Offer of up to 500 million Ordinary shares of 10p.

We would like to give you the opportunity to participate in this Public Offering to invest in Direct Line Group Ordinary shares prior to their listing on the London Stock Exchange.

The Offer price per Ordinary share is expected to be between 160p and 195p per Ordinary share. The minimum investment is GBP1,000, with us having to declare any investments over GBP50,000 to Barclays, acting on behalf of RBS (the Selling Shareholder).

Please be aware that this is a General Public Offer and is being offered to you independently of any current share holdings you may have.

Direct Line Group is a retail general insurer with leading market positions in the United Kingdom, a strong presence in the direct motor channel in Italy and Germany and a focused position in UK SME commercial insurance. The Group operates under highly recognised brands such as Direct Line and Churchill and is comprised of five primary segments: motor, home, rescues and personal lines, commercial and international.

Below you will find all the relevant information you will need to help you in your decision, including details of the web page hosting the Prospectus, however we are unable to provide any financial advice regarding this offer and you should seek independent financial advice if you are in any doubt.

Before proceeding with an application you must read the Prospectus.

If you are in any doubt as to the content of the Prospectus we recommend that you seek appropriate financial advice in order to gain a full understanding.

If you do not wish to participate, please take no further action.

whats the opinion??

This ad. seems to be plastered all over the place to me.. And at our expense as well... Well you did ask BB -):

going to pick up a few monday, and added rbs as could be good for sp next week.,.

You sure, reasons why please BB? The DL one I mean.

if nothing else, if i'm nimble the sp hopefully will have a rise first thing monday, will have to judge whether to stay in or not, is my theory.,.

OK, Fair enough good luck.

you have doubts care to tell me your thoughts.,.

No fundamental concerns as I haven't done any research, So it's just a feeling that things that are widely advertised rarely come up trumps, but as I say it's only a feeling and not based on anything else. If you have a short term Strategy and you can keep to it then you could well come out with a profit on the play.

ok ta. fingers crossed.,.

Before you buy some BB I would urge you to read the appraisal in this weeks IC. on the offer, not very complimentary.

And don't forget to tell Sid!

sid said buy buy buy.,.

Im not saying invest or not, just put down some collective views from this weeks investment mags. AUDYOR.


Caution needed mentioned in several investment mags this week.
Direct line is carrying at the half year stage of claims to premiums of 101%, so carrying a underwriting loss.Motor cover being Direct Lines core business (41% of premiums collected) and prospects looking weak there. The competition regulators are looking into the motor market. The OFT reckons that ''competition appears not to be working effectively in the private motor insurance market'' The competition commission has up to two years to report.

The price range suggests that Direct Line will be valued roughly around its reported end June net tangible assets of £2,5 billion. Thats not pricey. Earnings will struggle for growth and sentiment could suffer as regulators probe the motor market- leaving near-term, post flotation upside looking hard to spot.

MIDAS: Direct Line float looks tempting, but steer clearBy Simon Watkins
PUBLISHED: 00:28, 7 October 2012 | UPDATED: 00:29, 7 October 2012
Comments (2) Share

..The sell-off of Royal Bank of Scotland’s Direct Line Group insurance arm is the biggest share offer for some time and has set many investors’ pulses racing.

But they should beware of being swept up in the deal.

Direct Line Group is primarily targeting institutions, but a number of stockbrokers are offering a facility for individuals to buy the stock and investors have until Tuesday to decide if they want in or not.

The company encompasses insurers Direct Line, Churchill and Privilege, plus the Green Flag car breakdown business.

Spanner in the works: An investigation into insurers could hit Direct Line¿s shares
RBS is being forced to sell the company by the European Union, which has demanded the sale as the price for RBS’s State bailout during the financial crisis. RBS must sell half the business by the end of 2013 and must have sold the rest by the end of 2014.

This is the first factor that might make a potential investor cautious, as future forced sales could drive down the share price. In this first sale, RBS is offering between 25 per cent and 33 per cent of the stock. Shares will be priced at between 160p and 195p, valuing the group at between £2.4 billion and £2.9 billion.
More...Should you invest in Direct Line? Will it be a dividend goldmine or are car insurers heading for a crash?

The price will be determined by demand and will be set in four days, but the mid-point in the range is 177p.

Direct Line Group made a profit of £106 million in the first half of 2012. This means that at 177p a share, the group would be valued at about ten times past earnings and about nine times forecast earnings. This puts it in the same range as rival insurers such as RSA, owner of the More Than brand.

Direct Line’s plan is to pay between 50 per cent and 60 per cent of annual profits in dividends. This means that based on the 177p mid-price, a dividend of about 10p gives a yield of about six per cent. This is good compared with most of the stock market, but is not exceptional for an insurer.

Finally, what about the value of the group compared with its real assets – the cash and investments it holds?

After paying owner RBS a £200 million dividend last month, Direct Line Group’s net tangible assets are worth about £2.3 billion, or 155p per share.

So the mid-range of the offer price amounts to a modest premium to the value of its net assets. In this regard it looks priced quite cheaply. In comparison, RSA is valued at about 1.7 times its net tangible assets. So on balance Direct Line looks to be valued at a slight discount to its peers. But if demand for the shares is high and they are priced near the top end of the range, that discount will be far less.

As for its prospects, Direct Line becomes even harder to judge. It has some well-recognised and successful brands in Direct Line and Churchill. The red phone and the nodding dog are burned into the nation’s minds.

There is clearly huge value in these brands and their market shares. However, motor insurance in particular is a cut-throat market where price competition is fierce. There are no obvious ways in which Direct Line or Churchill can grow fast. In fact, as mature businesses in a crowded sector, they must market themselves heavily just to maintain their share.

Finally there is the Competition Commission, which has just begun an investigation into the motor insurance industry.

This is likely to look into every nook and cranny of the industry and focus on issues such as referral fees, where insurers sell accident victim details to third parties like injury lawyers, and the prices charged for repairs and courtesy vehicles.

About 40 per cent of Direct Line’s business is in motor insurance. It faces no unique threat from the investigation but if it leads to a big overhaul of the way car cover is priced, it could affect valuations across the sector.
Midas verdict: Just because this is a flotation and a chance to be among the first to own shares in a newly listed company, do not rush into buying Direct Line shares.

On balance the valuation is on the modest side, as one should expect from an initial public offering, but if shares are priced at the higher end of the range, then that discount will be reduced. Also there are risks to the whole sector posed by the Competition Commission inquiry.

Finally there is the overhang of shares. Even after this sale, two-thirds of the company will come to market in the coming two years. It is hard to see that as a positive for the price. For the time being, these are shares to avoid.


Read more: http://www.dailymail.co.uk/money/investing/article-2213890/MIDAS-Direct-Line-float-looks-tempting-steer-clear.html#ixzz28bKbwcFc
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Anyone applied for any then?

Wait and buy them in the after market!

Golden cross powered by DLG.

which means what skinney, on up or come crashing down? as for my purchase of dlg, it appears i didn't hit the right button, in hind sight maybe it was fate. no great loss, but in profit now with rbs.,.

Its normally a bullish sign. But wtf do I know.

more than me and thats a fact lol.,. cheers skinny