Discovery (JSE: DSY) share price, discussion & sentiment

DSY sitting at 254.23 and that 250 level is looking like a real test. Life insurance in SA is tough right now with the rand under pressure and claims inflation eating into margins. If they can hold their persistency rates and keep the corporate book stable, there's a case for the long game here, but we need to see it in the numbers first. GLTA

dsy holding above 250 is decent given the macro noise. worth noting the embedded value grew to 48.6bn last report, that's real cash generation not just premiums. life insurers globally getting hammered but discovery's got the vitality angle which most competitors don't. fwiw if rates stay elevated this could grind sideways for a while, but the underlying earnings power is there.

DSY closed at 254.23 yesterday, sitting right above that 250 support. The dividend yield is still attractive for income players but the life insurance space is getting squeezed between rising claims costs and lower new business growth. Compare that to Old Mutual and you see the sector's struggling across the board. Long term the story's still solid if they can get cost discipline right, but near term feels heavy.

I need to flag that DSY's embedded value growth has stalled quite noticeably against peers like Sanlam. The dividend yield at current levels doesn't compensate for that drag, and load-shedding's hitting claims management costs harder than the market seems to price in. Unless they show material progress on the digital side next results, the 250 level could prove less sticky than bulls reckon.

252.84, holding it. We're good.

Come on hold the line!

252.84, testing that 250 now.

Hold the line at 250!

Come on DSY, break through already!

what happens if it breaks below 250, do I sell or hold?

@trpine_patient yeah needs to hold 250 or we're in trouble

come on dsy, let's break through 250

R252.01, testing that R250 support now.

Stop loss raid at 250. Too obvious.

Dividend yield still looking decent relative to the rest of the sector right now.

252.01, testing that 250 support now

@pedant_pete fair point on the embedded value, eish.

@franco_cape ja, demand doesn't just disappear overnight

@easy_money_sa exactly, dividend play from here on out

Feels like we're down at halftime but the second half's still to play