if you 'buy the rumor and sell the news, is all this rain a rumor?
these two shares are stuck between interims maybe worth a quick .10p short?

more rain forecast, or don't they pay out claims anymore?

Up 10% so far.

Up 20% - more to come tomorrow me thinks when the shorters start to retrench

5p - I dont think so

Good to hear a positive view for a change :-)

LONDON (ShareCast) -" Rumours that serial insurance company raider Clive Cowdery is preparing a takeover bid for Legal & General(L&G) through his investment vehicle Resolution has lifted the sector higher. L&G leads the way, with sector peer Aviva not far behind."

"Legal & General upgraded to hold from sell at Deutsche, target price 82p"
Business Financial Newswire

Now 87p

Legal & General takeover whispers
Daily Mail

30 September 2009, 9:25am

Legal & General
jumped 3.75p, or nearly 5%, to 82.75p as takeover speculation intensified.

Persistent buying swelled turnover in the pensions and insurance giant to more than 55m shares as dealers heard that a 7bn, or 120p a share cash bid from an international insurer is imminent.
Suggestions over the weekend that L&G was preparing a defence document against an approach from
Resolution
put the market on takeover alert.

But experts say it is far too early for Resolution to be considering a deal. L&G declined to comment.

L'G declined to comment!!!!!!!!!!!!!!.

Another hefty 98 million shares were traded in
Legal & General
, yet still the silence was deafening. On the boil all week and up 17% over the last four pulsating days amid intense takeover rumours, the stock touched 94.4p before closing 0.15p better at 87.9p.

Professional punters remain super confident that a 7bn-plus or 125p cash bid for the pensions and insurance giant could be tabled soon.

Professional punters remain super confident that a 7bn-plus or 125p cash bid for the pensions and insurance giant could be tabled soon!!!!!!!!!!!!!!!!!!!!!!.

From this morning's FT chat:
"This is from Dow Jones
The NAB spokesman said that acquisition opportunities would be considered only where they are incremental or bolt-on in nature, strategically aligned, continue to keep the bank safe and improve the scale or distribution capability of our existing franchises.
All of which fits L&Gs description in precisely zero ways"

I think I agree that some kind of bid is going to materialise, hence I hold stock, but I am not that confident.

i hold lgen stock also - ii will wait a bid will be forthcoming probably before xmas 09

Fingers crossed.

:o)

I saw today on the FT chat page that LGEN had rejected a 110p offer from australian insurer AMP, but am not able to verify that with a RNS. Can anyone else shed any light on that?

BROKER CALL: Has penny dropped with Legal & General
15 October, 2009 07:21:15 AM


Bank of America Merrill Lynch goes to buy from neutral and the price target goes to 105p a share from 79p. Broker says: 'The penny has dropped' with respect to cash at the company, in our view, and we think significant improvements in the cash flow profile of the business will be seen in the coming years.'

Fuller note.....

Upgrading to Buy; PO 105p

As part of a wider industry note on cash flow, we are upgrading our opinion on
L&G from Neutral to Buy, setting a 12-month PO of 105p.
Including the conclusions drawn from todays industry piece, there are four
specific reasons for our change of stance. These are bulleted below and set out
in more detail overleaf and of course in the sector piece itself.

L&G screens well on our cash flow analysis. The penny has dropped with
respect to cash at the company, in our view, and we think significant
improvements in the cash flow profile of the business will be seen in the coming
years. Our cash-based DCF is supportive of our new PO.

We think the worst fears over the possible impact of solvency II will not be
realised, although this remains a key risk to our Buy rating.
We think the shares are inexpensive at 8.8x 2011E IFRS EPS, 0.85x embedded
value and a 2010E FCF yield of 9.2%.

Finally, L&G will, at the very least, be aware of the possible interests of
consolidators in the UK life market. This, we believe, will focus the minds of
management and possibly accelerate shareholder value creation.

Nomura....

New Price target: 115.00p

Nomura says the three insurers are the most attractive stocks in the European insurance space and lifts its target price for the firms while maintaining a "buy" recommendation.

"We have upgraded our price targets for Aviva, Legal & General and Prudential to reflect increases in net asset values following strong market performance in the past three months," Nomura analysts write in a note.

Posted by Pro TAer Zak Mir.......

Zak Mir



Reged: 28/06/07
Posts: 1070
Re: Legal And General (lgen)
#454901 - 15/10/09 03:14 PM Edit Reply Quote



The only penny that has dropped here is the one regarding the way that a rising stock market drags insurers's shares higher. The technical target on LGEN is 120p early in the New Year.

cfo buys at 88p

Business Financial Newswire
"Insurer Legal & General said today it achieved its 2009 net cash target three months early.

461m net cash was generated in 9 months to end-September, ahead of the 450m net cash generation target for the full-year.

The group reported its 50m annualised cost reduction target for 2009 was achieved within 9 months.

Worldwide new business was down 7% to 1.058bn (2008: 1.137bn).

Investment management saw gross new funds of 24.3bn, while LGIM assets under management was 311bn, with net inflows of 12.2bn so far.

UK Risk new business APE was down 23% to 293m and non-profit annuity assets under management was 21bn, with net inflows of 0.7bn.

UK Savings new business APE was up 1% to 673m and savings assets under administration was 52bn, with net inflows of 1.4bn.

International new business was up 2% to 92m.

L&G had an estimated IGD surplus 2.5bn (coverage ratio 196%) at end-September. "

Final Results.

Legal & General delivers 1.1bn IFRS operating profit, Generates 699m net cash and increases final dividend by 33%

IFRS operating profit up 87% at 1,109m (2008: 592m)

Final dividend up by 33% to 2.73p per share

Net cash up 118% at 699m (2008: 320m)

International IFRS operating profit up 115% to 127m (2008: 59m)

Annual cost reduction of 69m VS 50m target

EEV operating profit up 51% at 1,319m (2008: 875m)

Worldwide EEV new business contribution up 10% to 328m (2008: 297m)

IGD surplus1 up by 1.3bn to 3.1bn (2008: 1.8bn)