Questor share Tip: give Prudential a miss for a more attractive alternative

You're a disgrace, you all. You, the Board of Directors made a decision and you are wrong. You all should do the honourable thing, "said an investor at the meeting, referring to the amount of 377 m £ of costs incurred in the process of deal."

Several months on and Mr. Thiam, nor its Chairman Harvey McGrath left the company. Instead, Mr. Thiam seemed focused on the future yesterday as Prudential reported 33pc jump all year profits to £ 2 07bn. The results were driven out by a strong performance through Asian Affairs of the group, which represented the form £ 1. 5bn worth of annual sales of Prudential.

Back in December 2009, Questor recommended investors banked profits made in Prudential. After all, the company shares had climbed 123pc to 643½p since they were last at the end to 288¾p in February of this year.

Since then, much water has passed under the bridge, particularly failure AIA deal, which saw the price of the shares of the Prudential hit a nadir of p 489,2 last July, shortly after the agreement has been discarded.

However, the Prudential shares have increased once again, climbing on 50pc 749 percent from their low. Calls to Mr. Thiam and Mr. McGrath to resign also fell away as investors recognize the strength of the company core, its Asian business supported by cash generative units in the United Kingdom and the United States.

Prudential has shown that he can make the right decisions in Asia by limiting its exposure to highly competitive markets such as Taiwan and the Japan, while investing capital in high-growth areas, such as the Malaysia. The company has not excluded to make acquisitions in the future, but is unlikely to ask shareholders for a question of pressed expensive rights of return after having met with strong opposition to the appeal of cash. 5bn £ 14 required to support the agreement of the AIA.

The sector of life UK has become a place attractive for investors in these last few months with the generation of cash and cost cutting programs to woo shareholders. Performance of shares Prudential 3 14pc and few would argue against the balance sheet of the company - bar AIA - providing great value for the shareholders before, during and after the financial crisis.

Despite this, Questor believes there are alternatives more attractive in the sector such as Aviva, with prizes of the action of the Prudential already reflecting most of the strengths of the company, close to the high five years of 811 pthat they have reached in 2007. Some questions are also on the future of Prudential UK and us, businesses and the threat of an AIA revitalized under the direction of Mark Tucker, making Prudential one avoid at present.

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