topped up Chesnara

[Arborbridge]

I took the plunge (as in plunging share price!) and brought CSN up to median weight yesterday. This might be HYP, but it sure is against normal conventions such as "run winners and cut losers". Since I bought in September 2017 my TR has declined at the rate of over 5% pa. HYP=HOPE.

For the record, here is the top third of my HYP in topup ranking order after that purchase. CSN was fifth and is now 14th. This leaves an interesting bunch at the top to choose from for next time which will result in some head scratching.



Arb.

[IanTHughes]

I took the plunge (as in plunging share price!) and brought CSN up to median weight yesterday.

Why buy into and then top-up such a Pension / Insurance tiddler when there are much larger companies available, some at higher yields too, Aviva PLC (AV) - number 4 on your own top-up list - for example?

I know next to nothing about Chesnara PLC (CSN) for the simple reason that there are available, to my mind at least, companies with much bigger market capital and offering higher yields


Ian

[Arborbridge]

Why buy into and then top-up such a Pension / Insurance tiddler when there are much larger companies available, some at higher yields too, Aviva PLC (AV) - number 4 on your own top-up list - for example?


Ian

Aviva was not preferred this time due to my rules of operation.
The top up wouldn't have been economic as the current size is 0.93x median and the capital contribution would have pushed over 4% - between 4 and 5% is my area of "soft ceiling" for further buys, and the same argument with regard to income provided which is just under 4%. In any case SLA was in the preferred position compared with Avia and might well receive the next topup.
Finally, Aviva was topped up in August - in fact it was the most recent top up - so I tend to turn to something different next time. I'd prefer to wait and see if a more economic size topup will occur later rather than just incurring charges for the sake of it.

Arb.

[monabri]

There was a comment in the Investor's Chronicle suggesting CSN might get bought out....

https://www.investorschronicle.co.uk/ti ... ion-drops/


"IC View
Should acquisitions prove difficult or too expensive, we agree with Panmure Gordon that Chesnara could itself become a takeover target, with the shares trading at a 25 per cent discount to the latest Solvency II own funds figure of £588m. With the interim dividend up, we stick to our guns (386p, 26 Jul 2018). Buy.

Last IC View: Buy, 377p, 29 Mar 2019"

Hmmm!.. any " Greene King" thoughts?

[Arborbridge]

My average price is 386p, so I will need a fairly substantial uplift to breakeven.

This could be one of those situations we discussed recently in the GNK thread - in which everyone crows about what a superb uplift it is, but it's on such a depressed price that most/many shareholders actually feel robbed.

Still, if anyone is interested, it does show the company is worth having


Arb.