Is the Time to Invest in Banks approaching?

mrposhman

SouthCoast wrote: »

Should this discussion be on the Gambling Board?

why would it?

IMO these shares have never been a gamble. If you gamble on the horses, its over within seconds (not the case here), if you gamble on football once the time has come for the gamble to pay off its over (again not the same here, all investors have different timescales).

Admittedly the risks are higher, though its no different from trading any shares, weigh the potential risks up with the potential rewards. If they come out positive in your favour then invest the shares.

I have one (as evidenced by a lot of my recent posts) haven't been taken in by the medias nationalisation line and therefore don't see the shares as as high risk as some would have me believe. The dividends is generally a non-issue., If you know dividends aren't going to be paid when you invest in the shares then you've already taken that risk into account. Whats more, what this recession should be telling us, is forget about whats happened before (ie. dividends being paid) its not happening now. Lets look to the future and look at the merits of the company at current share prices. Based on pe ratios the shares are MASSIVELY underpriced.

StevieJ

mrposhman wrote: »

why would it?

IMO these shares have never been a gamble. If you gamble on the horses, its over within seconds (not the case here), if you gamble on football once the time has come for the gamble to pay off its over (again not the same here, all investors have different timescales).

Admittedly the risks are higher, though its no different from trading any shares, weigh the potential risks up with the potential rewards. If they come out positive in your favour then invest the shares.

I have one (as evidenced by a lot of my recent posts) haven't been taken in by the medias nationalisation line and therefore don't see the shares as as high risk as some would have me believe. The dividends is generally a non-issue., If you know dividends aren't going to be paid when you invest in the shares then you've already taken that risk into account. Whats more, what this recession should be telling us, is forget about whats happened before (ie. dividends being paid) its not happening now. Lets look to the future and look at the merits of the company at current share prices. Based on pe ratios the shares are MASSIVELY underpriced.

The divi yield on Barclays based on the 50p price on Friday would work out at nearly 70% historical, they have promised to resume at the end of this year, obviously this will be reduced from previous years but could still look extremly attractive based on the lower share price.

caveman38

Of the banks in the spotlight. When are dividends expected to return.

StevieJ

caveman38 wrote: »

Of the banks in the spotlight. When are dividends expected to return.

Barclays said they would not pay a final in Spring but hope to resume at the end of the year. Then again nobody believes a word they say

Reaper

Hmmm. Perhaps I'll hang on to them for a bit. I'm wondering if Barclays might say something about dividends when they formally announce their results - 9th Feb from memory. I'll wait 'till then to decide whether to keep them.

Just_landed

welshmoneylover wrote: »

Woohoo

I've taken a gamble this morning and bought:

LLoyds x 300 @ 0.72p
RBS x 250 @ 16p

Am going to keep these for the long term so done it via certified dealing. I know it's dearer but I thought a nominee account would chage me £ for inacitivity!

Sue

Try here http://knowledgebase.iii.co.uk/

then what are you dealing charges

Decadent_Fool

Reaper wrote: »

I'll probably hang on to it for a few days more before my nerve breaks and I cash it in. The Lloyds shares I'll keep for the long term. When the recession ends the benefits of such a large banking group will become apparent.

Sounds like we're cast from the same mold mate

Decadent_Fool

caveman38 wrote: »

Of the banks in the spotlight. When are dividends expected to return.

For those banks in whom the government owns preference shares, no divi can be paid out until these are bought back by the bank.

tradetime

For those who decided to take a banking gamble, very nice trade so far :beer:

gozomark

tradetime wrote: »

For those who decided to take a banking gamble, very nice trade so far :beer:

as long as the gamble was taken in the last few days.....