Is the Time to Invest in Banks approaching?

Doshwaster

lotsadogs wrote: »

Well I bought shares in both Lloyds and Barclays in March this year, so its been a good run for me. I work on hunches, no real skill, so I am further pleased with progress this week. But I dont understand the leaps of today - can anyone explain???

Possibly a lot of people trying to get on the bandwagon after it has left the station?

I don't invest very often in shares (not directly, at least) but I bought into BARC ealier in the year when they were 80-odd pence. I'm no expert but it just seemed a ridiculously low price for a pretty sound business in comparison to the other banks. So, i'm very happy now that they are around 350p. I think I'm going to hold on until they get to about 400p then pocket the profit.

sabretoothtigger

You could scale out gradually, the banks are liable to sharp moves still I think though barclays has been fairly solid recently apart from the arab guy selling his shares

I also think they may bubble upto 400 though it seems a bit inflated they do have the excuse of the new expanding lehmans business. 414p is their top for the last year I think made in sept but this was before the issue of any new shares or warrants

animal8

You also need to consider the dividend yield.

It is worth looking at what the banks have paid historically and what you think they might pay in the future.

Barclays will start paying divis by the end of the year. If you bought these at low prices, the yield on your money could be very big.

sabretoothtigger

Barc have indicated they will pay a dividend for this year and also end year results but it wont match previous pay outs. They still have to build up capital and offset continued losses, I think it'll be quarterly in future

Lloyds have paid out like 2% in shares, I think they are going yield as a percentage of their present price not suddenly churn out 35p though that would be nice :laugh:

hens00

I managed to pull off a successful trade today with Barclays, buying in at 336p this morning and selling again at 349 in the afternoon. The day trade was a bit of a punt since i normally look to invest long term. Im happy to day trade on Barclays though as it's a stock which I think will recover well.

Decadent_Fool

hens00 wrote: »

Im happy to day trade on Barclays though as it's a stock which I think will recover well.

My feeling is it's had the lions share of its recovery now; I'd be very suprised at any increase on a scale of the last 6 months! :eek:

sabretoothtigger

True but just holding the stock even if the price fell isnt that bad so long as the companys prospects are good.
That must be why the price keeps rising though I'd not really want to buy at this price, people like quality and its ironic they have returned to this stature so soon but barc always had a kind of premium like this I think


Share center posted up a report on banks they did. They favour barc mostly because of lehmans but are too bearish on rbs I figure, probably worth playing them if they did fall into the thirties, I keep thinking this company owns natwest and a few other gems so thats alot of hidden positives

sabretoothtigger

Is Barc Heading For 425p


Free report. Just enter your details.

http://www.galvan.co.uk/form.asp?f=MW&f1=Barclays&f2=&f3=









http://www.mybanktracker.com/bank-news/2009/02/20/how-much-has-banking-changed-value-of-banks-from-2007-to-today/

sabretoothtigger

Broker tips: Lloyds Banking, ENRC, Lookers

Long suffering shareholders of Lloyds Banking Group can look forward to the bank resuming dividend payments next year, analysts at Royal Bank of Scotland (RBS) predict.

RBS believes its fellow part-nationalised bank is on the recovery trail and its finances should be sufficiently restored to pay a nominal dividend in 2010 while the company could have scope to improve the pay out substantially in 2011 as a result of improved margins, lower write-downs and tighter cost controls.

RBS has upgraded Lloyds to ‘buy’ from ‘hold’ and lifted its price target from 60p to 150p. The shares represent a ‘compelling restructuring opportunity,’ RBS reckons.

This seems slightly over optimistic short term, though they will give a dividend I think

sabretoothtigger

Article on lloyds moves http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6128304/FSA-stress-tests-Lloyds-fund-raising-proposal.html

http://www.iii.co.uk/articles/articledisplay.jsp?section=Markets&article_id=10039960


This is a positive I guess and I'd look to back it even if we do fall back while its going on.