27 ordspråk av Colin Morton
Colin Morton
All retail stocks have bounced. M&A activity is driving the market.
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All the life insurers have got to get used to the fact they are no longer writing business at the same high margins they used to six or seven years ago, when they wrote a lot of with-profits business.
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As a shareholder you get nervous when companies say they are looking at the U.S., because historically, UK firms haven't made a good fist of it over there.
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I would be surprised if someone was willing to pay at this price for the stock. I am pretty cynical, but I am loath to dismiss it completely.
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I would be surprised if the stock does not react pretty strongly.
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I'm very surprised to hear they've done this. Maybe they're covering their own position should someone else come in and make a bid.
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If you look at the $65 billion figure and the market cap of about $200 billion, they're saying you could technically get back almost a third of the company by 2008.
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It wouldn't be a surprise if one of the smaller UK banks got bought, but Northern Rock have always had a disciplined organic growth investment model of their own, so it would be something new for them.
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It's a lesson in expectation management.
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It's difficult to see them getting it at that price; it would take a lot of talking to the institutions, because on the face of it the premium looks a bit skinny for Prudential shareholders.
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It's unclear whether they could find something in the U.S. at a price they'd be willing to pay.
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Margins are much more of an issue than they were, but hopefully if they can get the growth, it should help offset any margin pressure they see.
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Market confidence towards savings products seems to have returned. As a result, the life insurance sector is getting back on track after a couple of tough years.
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Overall it looks okay, with earnings in line with expectations. Barclaycard is as bad as people thought it would be and retail is better than thought.
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The business really does seem to be firing on all cylinders at the moment.
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