Thursday newspaper share tips: At odds over Saga

1st Oct 2015 11:25

(ShareCast News) - The Telegraph and The Times are again at odds over what to do with a particular company - this time it's Saga.The company, which sells products and services for people over the age of 50, said on Wednesday it remains on track to meet its annual targets on the back of a surge in interim pre-tax profit. In the six months to 31 July, pre-tax profit more than doubled to £101.3m while revenue grew 8.6% year-on-year to £478.3m.The Times' Tempus highlighted that it is sticking to its promises it made when it floated by extending the brand into other areas including financial services, upgrading its travel operation and reducing debt. With that in mind, Tempus is reiterating its recommendation from May - buy long term.However Questor doesn't agree. It says that with £536m in net debts against £1bn in net assets, investors are exposed to more risk than other motor insurers. On top of that, the insurance sector is a tough area to work in, with "low growth and fierce competition".It also highlighted that previous private equity owners CVC, Permira, and Charterhouse have reduced their stake from 72% to 44%. Tempus thinks they'll be looking to ditch the business completely within the next 12 months, and thinks investors should sell as well.