Will you be buying shares in Lloyds TSB?

sabretoothtigger

owch

I don't need the money just now I will leave it for another year

I think moving money sideways often works best, you can keep on leaving at the top and entering another share at the bottom that way, in theory at least.
Thats the only reason I sold b&b to buy sl, neither was an ideal transaction but it saved some pain

In practise though, everything fell in the last year pretty much

Decadent_Fool

ian-d wrote: »

So when do ppl think the right time to step in to bank shares (Lloyds, Barclays) will be? Currently have none, kicking myself that I started this thread and didn't buy any...what a noob!

For Lloyds Banking, I think after the next set of interim results which, if anything like previous years, will be out at the end of July.

Just my opinion, and the strategy I'm following - their shares took a 40 percent hit on the full year results if I remember correctly, and no reason to expect the interims should be drastically different. I believe a lot of people will have taken up the open offer, thinking they're getting a bargain, and will have the wind put up them by some shocking results. I also believe there'll be some profit taking as soon as the new shares are released.

Don't take my word for it though

sabretoothtigger

:idea:Buy into weakness maybe, if your heart can take it :laugh:

Don't take my word for it though

i'll sue if your wrong :mad:

seriously though, that'd make more sense to me then buying at 100p. Its weird how theres always a great reason or sentiment not to buy at the low prices but its all good when they've just doubled, strange stuff

ian-d

Would it be fair to suggest that Lloyds should eventually recover to similar share prices that Barclays are currently at? I may take some time but the banking sector should recover with tighter restrictions which might make it a safer bet against nasty drops. I may just hold out a little while longer than take the step forward.

Can anyone confirm if all these additional 'cheap' shares have been floated onto the market yet? Obviously the price per share dropped massively the other day with this, but are more due which may reduce the price further or is that all done with now?

sabretoothtigger

Thats a big question, I would say no because of all the dead wood that came with hbos.
They tripled their share base and the hbos was a massive haul but so was the titanic, its unclear how much value that could be in the long term.

I think lloyds will find more profit in the uk then barclays will realise in the us but strictly on the share price I cant see lloyds being valued 3x higher where as barclays didnt issue as many shares or undertake anything as dramatic

Robinmsa

Reading through their literature, Lloydstsb will dump 10,408,535,000 new shares on the market which it is offering all of them in an open offer for 38.43p per share to all share holders...

There are presently 16,753,147,366 shares floating around at the moment...

Making a grand total of 27,161,682,366...

You have to have applied by the 5th of June, or the shares that you are allocated will be sold.

As far as I understand Lloyds is using the money, to purchase the preference shares back.

So question is do I buy???

Thrugelmir

ian-d wrote: »

Would it be fair to suggest that Lloyds should eventually recover to similar share prices that Barclays are currently at? I may take some time but the banking sector should recover with tighter restrictions which might make it a safer bet against nasty drops. I may just hold out a little while longer than take the step forward.

Can anyone confirm if all these additional 'cheap' shares have been floated onto the market yet? Obviously the price per share dropped massively the other day with this, but are more due which may reduce the price further or is that all done with now?

The proceeds from the capitilisation issue will be used to buy back some of the preference shares held by the Government. The shares you described as "cheap", are priced to make the take up of the offer attractive.

Barclays unlike Lloyds did not take up the offer of Government funds. However the money raised fron Middle East investors came with strings attached in the form of warrants. Which ultimately could result in a significant dilution for existing shareholders.

Tarkwa

Just received an option today in the post to buy Lloyds shares at 38.81 pence each is this a wise buy. Not sure what to do as I was stung last year with HBOS shares...any helpful advice anyone?

Decadent_Fool

Tarkwa wrote: »

Just received an option today in the post to buy Lloyds shares at 38.81 pence each is this a wise buy. Not sure what to do as I was stung last year with HBOS shares...any helpful advice anyone?

Yes, lots, but it'll take a lot of reading. The last few pages of this thread are a good start, and there are many other threads asking the same question

sagalout1954

I'm definitely giving it a miss, see links below

http://www.mailonsunday.co.uk/money/article-1184618/Dont-rush-Lloyds-share-gamble.html

http://www.dailymail.co.uk/news/article-1185047/Lloyds-shares-lose-33-amid-fears-EU-force-bank-unstitch-merger-forged-Gordon-Brown.html