Lloyd Share Price

Fuzzythinking

Hi

Thank you for general information, let go back to the current share price of Lloyd Banking Group and RBS and we all know that government own 40 percent and 80 percent on these banks respectively.

Now they are making profit and hopefully clear their debts and buy the share back from goverment. Do you have any idea when will they buy the share back from government?

If this happens to these banks, then the share price surely go up high and resume dividend in 2012 or 2013. Do you agree with my view?

The investment on the share of Lloyd Banking Group and RBS should be a good long term investment - increase capital market growth and hopefully the dividend will resume.

FT

sabretoothtigger

I think lloyds is mostly a play on debt vs housing. Which will maintain its value better. If all their mortgages were paid off tomorow with the full compound interest also the shares would be worth 3x times or more I suppose.

That cant happen but I think they'll register a steady gain, so long as they dont get broken up first. I dont think they will because its part of government and eu already passed them

moneylover

according to Saturday Times newspaper:
"Although the 2010 Lloyds banking group were as expected, cautious comments on the economy saw the lender marked down 3p to 62 and three quarters pence." Closing price today 61.96p

Fuzzythinking

moneylover wrote: »

according to Saturday Times newspaper:
"Although the 2010 Lloyds banking group were as expected, cautious comments on the economy saw the lender marked down 3p to 62 and three quarters pence." Closing price today 61.96p

Why did the share price go down when the Lloyd made a good profit?

FT

Thrugelmir

Fuzzythinking wrote: »

Hi

Thank you for general information, let go back to the current share price of Lloyd Banking Group and RBS and we all know that government own 40 percent and 80 percent on these banks respectively.

Now they are making profit and hopefully clear their debts and buy the share back from goverment. Do you have any idea when will they buy the share back from government?

If this happens to these banks, then the share price surely go up high and resume dividend in 2012 or 2013. Do you agree with my view?

The investment on the share of Lloyd Banking Group and RBS should be a good long term investment - increase capital market growth and hopefully the dividend will resume.

FT

The shares will be placed in the market or tendered for public auction. Neither bank has the reserves to purchase the shares back. In fact more likely there will be further rights issues in the future to increase capital strength.

Neither bank is going to pay dividends until 2012 at the earliest. Both have to contend with EU directives so expect RBS to divest itself of Williams & Glyns and Lloyds likewise with BOS. Llloyds also has to reduce its market share of the UK mortgage market.

RBS is going to be a shadow of the bank it was. Around 40% of assets are still non-core. So either up for sale or ultimately will allowed to run off.

Lloyds is a play on UK domestic economy. Longer term safe but boring. With limited growth prospects.

Eire could still prove troublesome for both banks in the short term with plenty of exposure to commercial property projects. That are now worth a fraction of what they were.

HBOS has demonstrated today that even well managed banks are failing to deliver the expected returns.

martinbuckley

Because the market cant take any "good news". Even a £2 billion profit has to be "doomed" by two hats like Robert Peston who can only blog about the 2nd half profits being much lower - probably a lot to do with the £500 million they've just put aside for compensation in relation to another HBOS F**k-up that has suddenly come to light.

Fuzzythinking

Thrugelmir wrote: »

The shares will be placed in the market or tendered for public auction. Neither bank has the reserves to purchase the shares back. In fact more likely there will be further rights issues in the future to increase capital strength.

Neither bank is going to pay dividends until 2012 at the earliest. Both have to contend with EU directives so expect RBS to divest itself of Williams & Glyns and Lloyds likewise with BOS. Llloyds also has to reduce its market share of the UK mortgage market.

RBS is going to be a shadow of the bank it was. Around 40% of assets are still non-core. So either up for sale or ultimately will allowed to run off.

Lloyds is a play on UK domestic economy. Longer term safe but boring. With limited growth prospects.

Eire could still prove troublesome for both banks in the short term with plenty of exposure to commercial property projects. That are now worth a fraction of what they were.

HBOS has demonstrated today that even well managed banks are failing to deliver the expected returns.

Im a bit concerned regarding Lloyd will further right issues to increase captial strength. Are you saying the bank will offer more discount share to the shareholders? What will happen to the existing Lloyd share that the people currently hold?

What about RBS shareholder?

FT

Thrugelmir

Fuzzythinking wrote: »

Im a bit concerned regarding Lloyd will further right issues to increase captial strength. Are you saying the bank will offer more discount share to the shareholders? What will happen to the existing Lloyd share that the people currently hold?

What about RBS shareholder?

FT

Banks need to build capital reserves to comply with Basle 3 regulations by 2018. So to grow their businessess longer term they may well require further capital funding. That or pay smaller dividends and retain the profit instead.

Thrugelmir

martinbuckley wrote: »

Because the market cant take any "good news". Even a £2 billion profit has to be "doomed" by two hats like Robert Peston who can only blog about the 2nd half profits being much lower - probably a lot to do with the £500 million they've just put aside for compensation in relation to another HBOS F**k-up that has suddenly come to light.

The compensation wasn't factored into the results.

Lloyds didn't even achieve a 1% return on assets. So hardly a glittering performance.

sabretoothtigger

That is the past, market estimates future. Market is estimating lower profit then it speculated prior to results.

So what you see is a reaction to the surprise. If there is no surprise in the results, its neutral which can mean price goes down. If the results were surprisingly good, this can mean price goes up or stays flat. Surprise results worse can mean price stays neutral or goes down.


You could see it as a horse race. Your horse wins, now do you keep all the money on it for the next race or take some or all home with you. Alot of the time, at least some of your winnings you would want even if the horse is winning.
The market often gambles too much and diametrically it also often takes alot of its winnings. Dont take it personally