Saga Management Needs to Get a Grip, says Hobson

THE WEEK: Morningstar columist Rodney Hobson says investors caught out by Saga's share price drop should stay in - but he wouldn't invest any more cash

Rodney Hobson 8 December, 2017 | 10:56AM
Facebook Twitter LinkedIn

The most worrying aspect of the profit warnings from Saga (SAGA) was the way that management was apparently completely caught out by the collapse of Monarch Airlines and was blissfully unaware of the impact that this would have on Saga’s tour operations.

At times I do wonder what investors want

The last trading update we had from the services to the over 50s specialist came with interim results on 22 September, and very bullish it was, too, with an 11.1% rise in the dividend. In particular, it assured shareholders that the travel business “has had another strong period of trading” with the tour business generating a 7.6% increase in revenue from a modest increase in passengers.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Legal & General Group PLC283.50 GBP0.00
Prudential PLC1,270.50 GBP0.00Rating
Saga PLC265.80 GBP0.00

About Author

Rodney Hobson

Rodney Hobson  is a columnist for and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.