Is the Time to Invest in Banks approaching?

sabretoothtigger

I just sold Shell to buy the stocks no one thinks will pay divs and wait for a nice surprise

Barc pay 4p or 1.5%

sabretoothtigger

56p would be a nice place to buy Lloyds if possible, not sure it'll get that low just now as Thanksgiving is this week




RBS is exposed to irish debt hence its 'cheaper' still

http://yfrog.com/f7img12904633386449341210g

sabretoothtigger

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/12/will_the_chancellor_regret_cre.html

Robert_Peston wrote:

Will the chancellor regret creating the Banking Commission?

One of the bigger stories next year will be the recommendations of the Banking Commission set up by the chancellor on how to increase the safety of our banks and enhance competition between them.

What is increasingly clear to me is that this could cause something of a political car crash, in that there is no chance that the commission will say that the status quo is acceptable. Of the five members of the commission, not one believes that the way banking in the UK is organised today is either sensible or sustainable.



That means the chancellor is likely to be presented with proposals which will be hated by much of the City and by an influential contingent of his own party. The Commission's recommendations - due to be put forward in preliminary form in April - may well therefore precipitate something of a war both between the banks and government and within the government.

The National Audit Office today issued a report saying that if the government had sold its stakes in the UK banks at the beginning of December it would have made a £12.5 billion loss .

And it warned that as time drags on while banks will be paying the government less in fees, the taxpayer will still be paying £5 billion per year in interest on the money it borrowed to bail out the banks.

http://citywire.co.uk/money/should-the-government-sell-its-shares-in-lloyds/b458102

sabretoothtigger

Bank shares to be given back to the people ?

http://www.fool.co.uk/news/investing/company-comment/2011/05/16/get-your-very-own-four-figure-bank-bonus.aspx?source=ufwflwlnk0000001

Extreme capitalism, I think its a good idea

Thrugelmir

sabretoothtigger wrote: »

Bank shares to be given back to the people ?

The PPI scandal has set back the return of the state subsidised banks to full public ownership.

With UK based banks having around a £250 billion lending exposure to Eire. Banks are far from out of the mire.

I much prefer banks such as Standard Chartered and Handelsbanken, and to a lesser degree HSBC at the current time.

sabretoothtigger

Has everyone given up on Lloyds yet? Seems like now is the time when they have got the most bailouts with Ireland and just generally but are at their lowest price ever?

http://www.ft.com/cms/s/23bc63ec-062d-11e1-ad0e-00144feabdc0.html


Thinking its reasonable risk reward which doesnt mean success just a higher price possible. Its hard to tell with shares that have only ever gone down

Thrugelmir

This comment caught my eye.

Instead we’ll put up this comment from Bruce Packard, the banks analyst at Seymour Pierce:

We are sympathetic to the demands placed on a modern banking Chief Executive. Lloyds has £295bn of wholesale funding (of which half matures in less than one year) and total assets of £978.9bn, which quite understandably would cause anyone stress in the current capital market conditions.

Seems as Mr King has had the same issue in the back of his mind for a while. Keep the QE pumping through the system.

sabretoothtigger

sabretoothtigger wrote: »

56p would be a nice place to buy Lloyds if possible, not sure it'll get that low just now as Thanksgiving is this week

:rotfl: Not sure it'll ever get that high fits now. Its on quite a swing


I pretty much agree with this below. They are a monolith in their prospects, it might only be obvious in time why they will succeed in managing housing debt profitably
Negative sentiment is always a positive tick when selecting a share unless it really is justified vs price, the CEO I dont think is finished or has impaired matters

"Lloyds' dysfunctional chain of command makes for good gossip (and negative sentiment). Ultimately however, it doesn't materially impact the investment case, for which an entry level of 0.4 times tNAV [tangible net asset value] is compelling," Gordon said. Lloyds was among the worst performers of the day on the FTSE 100

http://uk.finance.yahoo.com/news/Broker-snap-Lloyds-digilook-3630226584.html?x=0&.v=1

Jegersmart

FWIW, I have started to pick up some RBS, LLOY and BARC in small tranches now, this is cash equities not CFD's or in any way leveraged so am happy to hold for the longer term. I think we may see further downside yet potentially with some relief rallies in-between, but they have all reached a price where I am "happy" to start buying....but as I said with a cautious approach.....

IMHO, DYOR

J

sabretoothtigger

Barc 142p might be a nice place to take an interest but I already own some, I meant to sell at 330 but I have a bad trigger finger