Should i buy lloyds shares today

poolielad

Hi all, new to share dealing, i am thinking, well i think i am going to do it, (if that make sense), of buying some lloyds tsb shares at todays prices, i have been looking at them for a while now.just wondering if you lot think the time is now right to buy these shares.........

i know the market is volitile and i could lose all my cash etc....just wondering what you people think.....

FoxtonsRIP

There are much better companies to invest in so I say no

sabretoothtigger

There is no right answer because the question is wrong. You need to buy once a month for the next 2, 3 or 5 years maybe.

divide whatever you were thinking by that time period and I agree it might be worth a go but generally its not thought they will make much profit in the next ten years but then those factors are in the price.

In ten years when both banks are merged and they have paid off some of that debt maybe it'll be a well placed bank and you will have gained a headstart in position on a decent bank, beats a lottery ticket imo

John Eric Daniels (born August 14 1951, Dillon, Montana) is the chief executive officer of Lloyds Banking Group.

He worked with Citibank from 1975, being in Panama for five years, then worked in Argentina and Chile. In the late 1980s he spent three years in London. He became chief operating officer of Citibank Consumer Bank in 1998. Citibank and Travelers merged in 1998 and he became chairman and chief executive officer of Travelers Life and Annuity. From 2000-1 he was chairman and chief executive officer of Zona Financiera, a small short-lived internet startup company. He joined Lloyds TSB in 2001 as head of retail banking..

http://en.wikipedia.org/wiki/Eric_Daniels

tradetime

i know the market is volitile and i could lose all my cash etc....just wondering what you people think.....

You are clearly a gambler, and this is a gamble, who cares what anybody else thinks (unless you are looking for the contrarian angle, in which case I'd say wrong time to be using that) so go ahead fill your boots. :j

I'm joking btw, buy if you like but Caveat emptor applies

sabretoothtigger

Heres a couple of good articles with tips, in technology you have a much better bet. Banks are widely bought because of previous success, tv advertising, familiarity with lots of local branches but unfortunately none of that is a reason for future investment

Don’t follow the crowd, go against it. Those that have the bravery to buy when others are fearful make the largest fortunes, just do not prospect in the junk yard as you usually end up with what you pay for. Stick with high quality, dividend paying, low debt stocks with high relative strength, and your ship will come in. I can’t overemphasize the importance of relative strength enough, when stock picking.

http://seekingalpha.com/article/124632-ten-stocks-to-hold-long-term-barron-s?source=article_sb_popular

http://seekingalpha.com/article/124528-2009-depression-will-be-nothing-like-1929?source=article_sb_popular

tradetime

sabretoothtigger wrote: »

Heres a couple of good articles with tips, in technology you have a much better bet. Banks are widely bought because of previous success, tv advertising, familiarity with lots of local branches but unfortunately none of that is a reason for future investment

http://seekingalpha.com/article/124632-ten-stocks-to-hold-long-term-barron-s?source=article_sb_popular

http://seekingalpha.com/article/124528-2009-depression-will-be-nothing-like-1929?source=article_sb_popular

Your quote makes for a great post, couldn't have put it better myself. :beer:

Primrose

I wouldn't invest in banking shares at the moment, even if I had the spare cash. I still don't believe we had all the bad news from them yet and I suspect it will be many many years before they are able to repay all the government loans nthey've been bailed out with so I suspect dividends will be pretty low. I really believe that the good days of banking shares are over - at least for the next decade. There must be many more profitable sectors in which to invest- possibly oil, food, utilities all of which will still be needed by consumers, even in a recession.

tradetime

Primrose wrote: »

I wouldn't invest in banking shares at the moment, even if I had the spare cash. I still don't believe we had all the bad news from them yet and I suspect it will be many many years before they are able to repay all the government loans nthey've been bailed out with so I suspect dividends will be pretty low. I really believe that the good days of banking shares are over - at least for the next decade. There must be many more profitable sectors in which to invest- possibly oil, food, utilities all of which will still be needed by consumers, even in a recession.

Spot on, the banks made billions over the last few years selling garbage to each other and others, now that garbage has been exposed for what it is, the swathes of regulation that will decend on the banking industry after this will ensure that the majority will make very subdued profits going forwards, that is the ones who survive.

Stavros_3

Its the banks at the moment that are dragging the FTSE south. First we had the Northern Crock, HBOS, RBS, HSBC and now Lloyds. Not until these banks offload their sh1te and start lending their billions they have blagged will any confidence return to the markets. Its up to you if you want a high risk punt, you may get your fingers burnt or make a few hundred quid. Me?, well I'd rather put a tenner on a one legged ar@e kicker in the 3.30 at Newmarket

Rafter

Been wondering the same thing.

Some valid arguements above but there is a case for saying banks are oversold and the reaction over the weekend has been overdone.

I'm not going to take the plunge but think LTSB could rise 10% or more this week from the lows today.

As for the long term return on bank shares, sure they will get more boring but we still need banks in the same way we need electricity and there will be a lot fewer of them. That normally means higher prices and profits for those left in the market.

R.

tradetime

Rafter wrote: »

Been wondering the same thing.

Some valid arguements above but there is a case for saying banks are oversold and the reaction over the weekend has been overdone.

I'm not going to take the plunge but think LTSB could rise 10% or more this week from the lows today.

As for the long term return on bank shares, sure they will get more boring but we still need banks in the same way we need electricity and there will be a lot fewer of them. That normally means higher prices and profits for those left in the market.

R.

All fair comment, most banks, (the ones on everyones radar) are priced to go bust or be nationalised, so it's fair to say that whoever doesn't is oversold / underpriced, if Geitner for example pulls something out of his hat that the market can like, banks could go 50% at least, danger is, will they drop 50% before that happens, there is nothing worse than watching you stock on a charge rising 50 or 60% and still being below what you paid, been there done that, learnt my lessons.