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Generally and Legally, this Financial Magician Is on a Roll and Should Conjure Up a Higher Share Price

By Malcolm Stacey | Thursday 10 August 2017

Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Hello Share Creepers. We really do love it, don’t we, when one of our babies boosts its profits? Not its revenues, which oft mislead, but the real, honest to goodness, operating profits.

The mighty insurance and pension firm, Legal & General (LGEN) has posted a whacking great increase in its profit in the first bit of 2017. It's up by 27% to £1 billion. The company announced an interim divi of 4.3p. That’s 7.5% better than last time round.

The pension bit, L&G Retirement, brings in most of the sheaves, but all departments improved.

Now you might have read that the numbers of years we live has started to go down. A bit surprising that, given the new and better medical treatments being discovered, it seems, every day. But then again, we are doing ourselves no favours by the way we live. We are getting fatter, much fatter, doing less exercise and we continue to stress out over nothing, while munching junk food. So we are beginning to live for fewer years.

That sad fact should help pension providers, like Legal & General in the future. The firm is also progressing by transferring pensions around to the best effect. And it now manages more than £20 billion worth of assets for 550,000 clients.

The investment management arm of L&G saw assets under its wing rise to £951 billion  - yes billions, not millions! - a rise of 13%. It also trades its own portfolio, and profits there rose 5% to £142m. Though, actually, I bet your own bag may have done better than that, given the current strong bull market. 

Never mind L&G has done well, while the share price did not react that strongly to the news. Which means we could be looking at a buying opportunity here.

So let’s discuss it in the Punter’s Return.

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