Category Archives: $LGEN

$LGEN(Legal & General) – lower after results….you should….

Optically the release looked good with record profits, but analysts view the earnings as weak, and the picture of the full year dividend not clear.

One can never be sure what is priced in to a stock and whether it should go up or down on earnings – some stocks go down on great numbers, and other go up on a terrible number – all depends what is priced into the stock.

A stock trading well below the 2Centview fair value should provide some skew to the upside if the stock does rise post results  – and limited downside if the numbers are not good, as the stock is already cheap – which has been the case here.

So – If you are in the trade sent out last week, then look to exit for flat if it was just a trade in anticipation of a good number propelling the stock to the fair value – which in this case has not happened.

Long term holders, should stick to the trade as $LGEN has a great yield and solid balance sheet.

2Centview has exited the trade from last week , for flat.

Look for the next opp!

$LGEN(Legal & general) – Fv=250 vs 206. Yield 6.75% …look to..

If you have just sold some $DLG, look to put the cash into a trade on Legal and General.

2CentView, FV = 250, Pre Brexit high was 246 – results due Aug 9th – Yielding a potential 6.75%.

Insurers have lots of cash – which in today’s zero and negative interest world is actually burden rather than a benefit, so stock prices are low. However, as $DLG has shown, the market is still good for insurers.

Suggested trade:

Buy here at 206, Take profit 246, stop 180.

2CentView is in the above trade.