Tuesday's free share tip on UK-Analyst.com is from the team at TopSpreadBets.com
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Open A Buy Bet In The Legal & General Rolling SpreadThe Bet ( today's free share tip): We recommend opening a buy bet in the rolling Legal & General (LGEN) spread at £50 a penny when the quote is standing at 77p - 78p. The target is 95p initially and the stop loss is 64p for a risk of £600 at our suggested wager.
The
Fundamental View: We are backing a buy bet in
insurer L&G in the wake of last month's trading
update when the group said that it had double its UK
net cash position, a feat that even beat its own
predictions. This was despite the way that sales for
last year were modestly lower. Nevertheless, we are
backing L&G as a buy bet on the basis of the cash
generation, as well as the prospect of consolidation in
the sector from either the Resolution (RSL)
consolidation vehicle or other parties in the wake of
the massive Prudential deal for AIG's Asian business.
We regard this as just the start of a major M&A
shakeup of the insurance industry. 
The Technical View: We are recommending a buy bet in the L&G rolling spread on the basis of 200 day moving average rebound buy signal at 73p on the daily chart after the post January retracement in the stock. Only well below the 200 day line at 73p would alter the buy scenario, with the target of post September resistance towards 95p. The stop loss is at 64p is well below the support expected to come in at 70p or above.
Conclusion: Open a buy bet in
the Legal & General rolling spread as the uptrend
in the stock is maintained.
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