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Byron

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No Advice with a capital A here. Depends on the price and the expected dividend doesn't it? They sell a premium product to wealthy old age pensioners who don't generally claim as much as the rest of the lower age groups so they are quids in. However last I recall private equity bought it so they have obviously loaded it up with debt and about to exit with your money (if you choose to invest). I would look at the prospectus carefully to understand the debt burden they are under and the returns they are promising.

Edited by katchytitle

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If you ask yourself, would I buy from these people, and the answer is no, then don't consider their shares.

They charge top dollar for their insurance and from my mother's experience are more than reluctant to pay out on fair claims.

So I'll not be investing in the hope that the venture crapitalists haven't hollowed it out and lumbered it with debt.

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No Advice with a capital A here. ........ However last I recall private equity bought it so they have obviously loaded it up with debt and about to exit with your money.

Spot on

They have about £4billion of debt......

AVOID

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The interesting thing about our current economy is that raising debt lowers your tax payments. So as long as you spend the money of projects that produce high rates of return then debt isn't necessarily a bad thing. However, if you use it to financially engineer a company to look like its doing really well and spend the money on regular dividends rather than improving the business you're on to a loser. AS they say, pick companies that can be run by idiots because sooner or later they always are.

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