Good time to buy shares in Lloyds?

Thrugelmir

emmahip wrote: »

In that they are likely to reduce the number of their high street branches? This is not news though and the price of shares was 37 p a few weeks ago compared to 25p today

No. Lloyds is being squeezed by the low BOE base rate. As its dependent on the UK for around 90% of its income.

Lloyds has recently stated that's its unlikely to hit its income objective for 2014. This objective was set a few months ago in June.

So looks to be a long long road to recovery.

treetrunks

another consideration is that Lloyds almost went under when shares neared 20p per share before. They are a long way from going under so on that basis they appear under valued. I made a decent amount of money on LLoyds shares in the last month, buying at 27p and selling at 36p before another crash. If you get in, get out quickly and go again.

Mikeyorks

treetrunks wrote: »

If you get in, get out quickly and go again.

Is that the Prostate method of investing?

gadgetmind

Mikeyorks wrote: »

Is that the Prostate method of investing?

Lloyds bank - a DRE for your portfolio.

jayship

If u r already invested sit tight and wait and hopefully will recover enough to make a small return. I bought some last week and am nursing a loss but not concerned as yet.

What is fair value? It is a million dollar question. However the turnover on LLOY daily is extremely high which means that people r willing to gamble.

sabretoothtigger

gadgetmind wrote: »

However, I hold a LOT more bank preferences shares (NWBD, LLPC, etc.) than ordinaries as I think these provide better opportunities as it's going to be a long slow slog for UK banks.

LLPC is on an EU imposed divi block, and neither are what you might call risk free, but what is?

How come the Natwest prefs pay out when they received even more government money, looks a good deal to me.
These banks do have alot of assets at least you are nearerthe front of the queue if the worst should happen

another consideration is that Lloyds almost went under when shares neared 20p per share before. They are a long way from going under so on that basis they appear under valued.

Lloyds is cheaper then they have ever been. The reason being they issued more shares since, equated to now the 2009 low would have been 41p I think


I sold at 100p and and then again on the way (too early) to 70 and 80 last year unfortuantely I did not anticipate 25p now and bought back too early. Spot the pattern, this is one that cant be rushed.
Risk reward wise I think they are much cheaper thanks to the prolonged euro problem when Ireland is one of the better ones (post bailout?) now I dont see they are all that badly off. RBS is far more complicated

Main thing for Lloyds is securing enough cheap money to renew loans they need for all those mortgages, not enough savers

I think Santander is far better and you dont have to buy prefs even the ordinary shares yield about 10% I think

The deal values Northern Rock at almost one times its book value, roughly double the current market valuation of rivals such as Barclays and Lloyds Banking Group.

http://www.citywire.co.uk/money/the-friday-five-winners-and-losers-of-the-northern-rock-sale/a543660?re=16820&ea=249194&utm_source=BulkEmail_Money_Daily&utm_medium=BulkEmail_Money_Daily&utm_campaign=BulkEmail_Money_Daily

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8897793/Virgin-Moneys-Northern-Rock-coup-under-fire-from-Labour.html

gadgetmind

sabretoothtigger wrote: »

How come the Natwest prefs pay out when they received even more government money

On a technicality. If they miss a divi, then Nat West have to issue the holders more NWBD in a 4/5 ratio (from memory!) which means they weren't seen as discretionary.

It's because of this "para cumulative" aspect that NWBD trade higher than LLPC/D/etc., that and they are actually paying their divi.

My hope is that once thing settle down (they will, one way or another) then these prefs will be paying good yields and have capital upside.

Downsides are, 1) the whole hell in a hand basket thing, 2) coercive tenders. There have been some of these with Irish bonds (OK, I say Irish, but some were formerly UK building socs) and even B&B are having a pop, though the sharpness of the fangs of the latter are still TBD.

sabretoothtigger

It was a good time and is now a good time to sell or just hold and see. I like the CEO, about 16PE now I think



I did sell Sep 2009 and it does not seem impossible to get back there but I may ditch it at 80p. I already sold lots of batches I bought to trade but got stuck with on its -80% decline since then.

I was expecting a dividend ? 3bn earnings a year, 50bn market cap makes them not super cheap anymore. 20 PE is ok for a growth stock

Masomnia

I have to admit I'm strongly considering selling for the first time on this news.

It's just above where it was when I bought the first time around, and luckily I had the balls to average down my price by buying when it dipped below 30p. So I've done pretty well.

But I reckon it still has a good way to run!

Decisions... decisions...

Thrugelmir

and buy what?

I'm overweight in financials currently.