CHESNARA

This has a dreadful chart for last few months.
Didnt know why.
But it appears that USB has disposed of 4.2million over recent period which I think probably accounts for depressed 2 mths.

Strong points are its projected yield of 8.67% .
Peg of .36 and projected Peg of .29
Projected Profit 50% rise.

I have held these from about 98 before disposing of them at about 170 and re-buying some at 169 and 155 and 158 after recent drop on 31/102005 when it dropped probably due to USB sell..
Also bought some CFDs

My guess is that it is going to recover fairly sharply.

BDYOH

For those interested in the above share some background.
LONDON (AFX) - Closed life fund consolidator Chesnara PLC turned in better than expected half-time profits, and said it was on the lookout for acquisitions as the closed life sector continues to consolidate.

Chesnara, created to manage the closed life books of insurer and estate agency Countrywide PLC, said achieved operating profits before tax and exceptionals for the six months to June 30 came in at 2.9 mln stg, from a loss of 13.5 mln stg a year earlier, and ahead of the 2.6 mln stg pencilled in by house broker Numis Securities.

The improvement was driven by better investment returns and by cost reductions which the group achieved by outsourcing the bulk of its back-office functions in February. Chesnara also benefited from lower provisions against endowment mis-selling, which fell to 3.9 mln stg from 22.6 mln stg in the same period last year.

Chesnara chief executive Graham Kettleborough said the company, which in May bought the closed life books of Irish Life & Permanent PLC for 47.5 mln stg, was keen to buy up more closed life assets to shore up its position as one of the leading players in a rapidly-consolidating market.

"We are talking to a number of people, although there is nothing in the offing at the moment. The market has changed in the last couple of years - all the distress sales have happened, and it's now a case of being a hunter rather than a gatherer," he told AFX News.

Closed life fund companies such as Chesnara specialise in buying and managing life and pension funds that have been closed to new customers, and simply make payments to existing policyholders. Traditional insurers, battered by the stock market downturn of 2000-2003, have sold off many such funds over the past two years.

Chesnara is competing with the likes of Resolution PLC and privately-owned Life Company Investor Group to acquire the remaining closed life assets that are up for sale.

Kettleborough added that he did not at this stage expect any impact from controversial proposed changes to the tax regime for life assurers, unveiled last Thursday by the Treasury. Legal & General PLC has warned that the move could leave it facing a one-off tax bill of up to 500 mln stg, while Resolution has said that it might also be affected.

The Chesnara chief executive said that with outsourcing now completed, future improvements would come through investment performance, and further acquisitions. He also signalled that while the group remains exposed to potential endowment compensation costs, these will diminish as more policyholders pass the deadline by which a complaint must be made.

"Within 18 months, we believe the issue will have gone away," he said.

Chesnara administers about 85,000 endowment policies, the bulk of them inherited from Countrywide.

Many endowment policies, aimed at generating enough cash to pay off a mortgage over the lifetime of the loan, have underperformed, leaving homeowners facing a cash shortfall. Several UK banks and insurers have been forced to compensate endowment policyholders who claim that they were not warned at the point of sale that the investment might not generate the required sum.

Chesnara set an interim dividend of 4.9 pence per share, up 3.2 pct year on year, and said it was confident of delivering further dividend increases. Excluding the payout, the group's embedded value rose to 180.9 mln stg from 144.7 mln stg a year earlier, driven by the Irish Life acquisition.

Analysts at Panmure Gordon retained their "buy" recommendation and 190 pence price target on Chesnara shares.

Under International Financial Reporting Standards, interim pretax profits stood at 4.2 mln stg, up from a restated loss of 5.6 mln stg during the same period last year.

Bit of a drop first thing this morning but still looking good IMO.

I am a little surprised by the lack of price movement. There was rumoured last week it had been interested in a competed takeover of another company. I am not certain, but if they have to raise cash, this could be the reason for the stalling a little, but the short term trend is still up and I would have expected a small rise this am.
I think I will still W/See.

I think that the US hurricane season and resultant fall-out has hit the whole sector harder than first thought. CSN has been caught up in that but talent will out...

I think that the US hurricane season and resultant fall-out has hit the whole sector harder than first thought. CSN has been caught up in that but talent will out...

Over the last few days there has been a significant number of large buys followed by reasonable number of smaller buys to-day. Price has only budged upwards slighly, but at least is looking upwards.

SP passed through MA 5,10 and 20, MACD, RSI and Momentum and A/D looking positive.
At last I think somebody has noticed Yield of 8.2% on a relatively safe share whose company may have done another buy up of more Insurance Policies in the last few days.

Worth a look. I have good sized holding of these and like the pundits expect a share price in excess of 190P.

Excellent results out today, back to profitability and an increase in the dividend!

I must admit I was hoping for these as my one only CFD is in this company. Although I do have some other tranches.

VGood results.


Chesnara returns to profitability in 2005
AFX


LONDON (AFX) - Closed life fund operator Chesnara PLC said it returned to profitability last year, helped by cost controls.

The company, created to manage the closed life books of insurer and estate agency Countrywide PLC, said 2005 achieved pretax profit came in at 36.6 mln stg, compared with a loss of 3 mln stg a year earlier.

The increase reflected the acquisition in May last year of the closed life books of Irish Life & Permanent, which boosted achieved profit by 18.3 mln stg. Achieved profit is an insurance industry measure which takes account of the present value of estimated future earnings from existing policies.

The company also trimmed its costs through a deal to outsource the back-office functions of the Countrywide funds in February.

However, Chesnara was hit by a further 3.5 mln stg charge to cover compensation payments to customers who were mis-sold endowement policies. The comany said endowment complaints had remained unexpectedly high, blaming increased advertising by complaint-handling firms.

Chesnara said it remains on the lookout for opportunities to buy up more closed life funds.

The company is paying a total dividend for 2005 of 12.45 pence, up from 11.85 pence the previous year.

On an IFRS basis, Chesnara made a 2005 pretax profit of 20.5 mln stg, up from 4.4 mln stg the previous year.

Chesnara shares closed at 174 pence yesterday, valuing the company at 182 mln stg.



newsdesk@afxnews.com

jc/mn/jc

Another feature of the share is a probable yield of about 11%.
Better than a bond.

Absolutely. Rising SP and a rising dividend. Good news all round really!

Correction Yield is about 8%. Now, there are projections of SP price of 200 +. Worth a buy or a hold for dividend + growth.

Interesting spike up by 4% at the close of play. Something brewing?

Doing some research at the mo and this one came up again (maily because of high Divi) .

Some Institution activity over the last few weeks, Lloyds, New asset, and another lot. have you two been paying attention and If you have what are your feelings about this one now?

Results out this Thursday.

I've held for a couple of years now Stan and the sp has done very little. However the dividend alone makes it worth holding for the long term IMO so happy to sit tight at present.

Thanks Q1, What I would be looking to do Is to get the divi and not lose out SP wise.

ie: Come out as the SP returns to It's exdivi price.

Best of luck then Stan!

I see the sp is up 5p to 174p today after a fairly subdued period. I bought these shares at 185p in February this year, as I thought they may well be swept in by a larger predator, while the yield at 7% wiped their face. Substantial shareholders at 23rd March 2007 were as follows:-

Alliance AG-------- 12.80%
Legal & Gen.------- 3.23%
Treadneedle Ass.Man. 6.37%
Morgan Stanley Sec. 3.10%

Lloyds TSB -------4.12%
New Star Ass.Man 9.57%

Yield looks well covered and holding may well be one to add to on further weakness, if caused by further interest rate rises. Any views ? Sorry about the many posts, I pressed the wrong buttons.

They got a positive write-up in the latest Investors Chronicle.