Lloyd Share Price

Fuzzythinking

Hi

I understand that Lloyd Banking Group plc is now in the black for the first time since 2009. I was expecting to see the share price improve but it went down from 68 or 66p to 62p. I could not understand why this happened at the moment. Will the share price will improve this year?

ses6jwg

the market is all about expectation.

the market had already expected LTSB to return to profit.

many pundits believe the SP will grow up to 70% over the next 3 years. One to tuck in the ISA I feel.

Linton

Share prices usually drop on expected good news .

Prior to the announcement, if investors believe something good is going to happen they buy and cause the prices to rise. When it does happen those people who bought early seeking a quick gain sell and the temporary rise is unwound.

As to whether prices will rise this year - who knows. If more people wanted to buy because they believed prices would rise than wanted to sell because they believed prices would fall, then the increased demand for the shares would cause prices to rise now.

Thrugelmir

LloydsHBOS is still shrinking its balance sheet. As it repays the Treasury for funds lent under the SLS scheme.

UK retail banks are going to become increasingly similar to Utility Companies safe and boring. Days of growth are over.

HSBC's results should be good tomorrow with over 50% of its profits generated in Asia.

martinbuckley

I find it amazing that they can improve so much over 12 months, yet still their price lags way behind Barclays, which is now a smaller bank with less potential for increasing their profits.

Thrugelmir

martinbuckley wrote: »

I find it amazing that they can improve so much over 12 months, yet still their price lags way behind Barclays, which is now a smaller bank with less potential for increasing their profits.

Why do you think Barclays has less scope than Lloyds Group?

lvader

martinbuckley wrote: »

I find it amazing that they can improve so much over 12 months, yet still their price lags way behind Barclays, which is now a smaller bank with less potential for increasing their profits.

Lloyds shares are worth more than Barclays, it's just that Lloyds have issued more shares so each share is worth less.

Xbigman

Barclays didn't take govt cash like the other banks, although I recall a £7bn private equity injection that would have meant at least some dilution of the share price. Thats why their share price hasn't collapsed as much as the other banks.

Everyone please do not compare the banks current share prices as this vastly distorts any discussion about valueing them. I've seen this on multiple threads in the last few days and it is dangerous thinking. Just because RBS has fallen farther than Barclays is no indication that it is likely to go back up faster.

Personally I won't touch the banks yet. There is still uncertainty over vast area's of their finances, as well as uncertainty over any future regulatory regime. Just how do you value any bank now if it might get broken up in future?




X

lvader

Xbigman wrote: »

Barclays didn't take govt cash like the other banks, although I recall a £7bn private equity injection that would have meant at least some dilution of the share price. Thats why their share price hasn't collapsed as much as the other banks.

Everyone please do not compare the banks current share prices as this vastly distorts any discussion about valueing them. I've seen this on multiple threads in the last few days and it is dangerous thinking. Just because RBS has fallen farther than Barclays is no indication that it is likely to go back up faster.

Personally I won't touch the banks yet. There is still uncertainty over vast area's of their finances, as well as uncertainty over any future regulatory regime. Just how do you value any bank now if it might get broken up in future?




X

The biggest reason is that Lloyds and RBS have diluted their share price by issueing more shares more than Barclays. Unless they buy back the shares it will be a VERY long time (possibly decades) before the share price goes back to what it was. Even if the fondamentels look great.

Thrugelmir

Xbigman wrote: »

Personally I won't touch the banks yet. There is still uncertainty over vast area's of their finances, as well as uncertainty over any future regulatory regime.

HSBC disappointed the market today as it has lowered its forecast profitability on capital employed in light of increased regulatory capital requirements.

Thrugelmir

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