Saga plc (lon:saga)
Saga an idea whose time has passed?

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Title: Saga an idea whose time has passed?
Company: SAGA - Saga plc
Share Price Then: 125p
Author: Ian Smith
Date: Fri 05 Jan 2018
Comments: Saga have been around for ages but floated in 2014 so they are a relatively new investment opportunity.

Floating at around 185p peaking at around 220p and now at 125p are they sure to recover or are they on the Value Trap path.

I suspect a Value Trap and I am avoiding them because of what I see as a fatal flaw in their business model, The Internet.

In the past Saga’s database of the over 50s was their key market advantage, they could create a product either aimed at or apparently aimed at the over 50s, do a mailshot and put the money in the bank.

Yet this database is losing significance as every year the percentage of Saga’s target market that has grown up with price comparison sites and doing a web search is increasing, added to which search engines make it pretty easy for anyone with a product or service to target the over 50s.

So a Saga insurance quote will not be assumed to be either the best or almost the best deal, it will be heavily scrutinised and if not competitive another supplier will be selected.

It’s the same with holidays, financial services and health/care products.

All of this would be fine if you believe that Saga have products that people want, but looking at the Saga web site is a little bit like looking at a site filled with affiliate marketing links.

If you go the Money section you see; Share Dealing, Credit Cards, Personal Loans and you don’t get the impression that they have picked products and services that have taken age into account in any way.

A cycnic might say that it appears that Saga have approached a load of businesses, done some sort of a deal and then jammed all of their products into some sort of Content Management Website willy nilly.

So as well as being difficult to read, this is of course a subjective view, the web site reinforces the idea of a company that is lost and is trying everything to see what will be a success.
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