I couple of weeks I wrote about the Saga share offer. Basically, I thought that there might be some short term gains in the shares but in the longer term the future for Saga was not so good and hence selling the shares was a good idea.
Well I got that one wrong.
By any measure, the share sale has been a disaster for Saga. Firstly, the price of the shares was at the bottom end of the forecast price. Secondly, they didn't raise anything like the amount of money they planned because the private equity owners decided not to sell and so all of the purchasers were Saga customers.
Now it gets interesting. So there you are, your customers have purchased the shares and then they immediately fall in value. Just to add insult to injury, the way the share purchase system worked went into meltdown and so the refunds were delayed.
So Saga has less money than it expected and it successfully ****ed of its customers in the process. I think we can count that one as a failure.
Let's hope they sail their cruise boats with more professionalism. Dick Stroud
PS - this is an interesting take on the attractiveness (or not) of Saga