Tuesday, January 02, 2018

Saga share price goes south. Will it change direction in 2018?

According to this article the directors at Saga (the company famed for its focus on selling insurance and holidays to oldies) keep buying the companies share, after the collapse in price that occurred at the end of last year. The question it asked was 'should you join them'?

Well so far the answer is NO. They bought shares at 132p and yesterday's closing figure was 126p.

Anybody that reads my blog will know that I have never been convinced of the long-term viability of Saga. I have always thought that eventually its reputation for selling products to old people will become a disadvantage. The reason being that it is associated with the segment of the older market (the old end) that is shrinking (dying). For that reason and that there are lots of other companies providing insurance and travel that are targeting the older demographic.

It will be interesting to see where the share price ends up at the end of 2018. My bet is the company will be acquired - if not in 2018 then in 2019. Dick Stroud

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