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The sell in May challenge
Comments
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bowlhead99 wrote: »Gadget did you mean CPBA or CPBC are pibs? You said CPBB twice...
Ahhhhrrghh! Now fixed, I hope!They have a 5.555% bond issue (rate potentially reducing to a libor+ in 2015) and a 13% one. Worth knowing where everything fits in the structure if you get involved.
There is a *massive* thread in the MF Banking Sector board on this. 250+ messages but I'd read every one before investing!Personally as a contrarian I just bought into CPBB at 58p which looks much more sensible than the 80p+ a couple of weeks back.
Headlines about pensioners losing their savings may help some of the smaller issues, but the Co-op don't have too many options.
I'd have a tickle at CPBB if I wasn't already too heavy on bank paper. I thought it over-priced at the 80p+ when I entered it for this competition but it now feels about right. There is plenty of upside and the downside is limited by the fact that you can't lose more than 100% of your investment!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Strictly speaking, CPBA and CPBC are perpetual subordinated bonds rather than PIBs. The latter were issued only by building societies. PSBs are issued by banks that bought building societies to replace the latter's PIBs, and the PIBs of building societies that converted to banks were also replaced by equivalent PSBs. There is probably some technical mumbo jumbo somewhere that describes why this is the case - but I'm not bored enough to go and look!
sabre: the CPBB, etc, are for the Co-Op Bank.Living for tomorrow might mean that you survive the day after.
It is always different this time. The only thing that is the same is the outcome.
Portfolios are like personalities - one that is balanced is usually preferable.
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What'll happen to Lloyds when they float TSB? I guess it could be broadly neutral, as they'll get cash in the bank (er, so to speak...).sabretoothtigger wrote: »I would say lloyds as its the share that rose the most for me and it only takes the usual worry for it to be 40p. Its not moved much since May..
But, come to think of it, I doubt that'll happen before 11 Sep anyway.0 -
A good float will help the company, its something they have no choice in doing so getting it out of the way helps them move forward0
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But how much will they have to pay the underwriters to take the unsold stock?What'll happen to Lloyds when they float TSB? I guess it could be broadly neutral, as they'll get cash in the bank (er, so to speak...)"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
sabretoothtigger wrote: »Apple is in the middle of a large share buyback and they got 100bn spare or something silly. It might fall better after it finishes
Repatriated to the USA there'll be a 35% tax charge. Apple have a problem..........0 -
Thrugelmir wrote: »Repatriated to the USA there'll be a 35% tax charge. Apple have a problem..........
I believe they have raised a bond in the us for this to mitigate the tax charge, possibly supported by the offshore money, can't recall the exact details.0 -
I believe they have raised a bond in the us for this to mitigate the tax charge, possibly supported by the offshore money, can't recall the exact details.
The purpose of Apple's bond is basically to pay a dividend on the shares. They have been under pressure from some activist shareholders (at least one hedgie) to reduce their cash pile and give it to shareholders. By doing this via a very low coupon bond, not only can Apple avoid having to repatriate overseas profits, and therefore paying tax on them, the interest paid out from the bond comes out of pre-tax profits, therefore reducing their US tax bill even further.Living for tomorrow might mean that you survive the day after.
It is always different this time. The only thing that is the same is the outcome.
Portfolios are like personalities - one that is balanced is usually preferable.
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I guess the results for my CPBB entry will be down to the terms of the LME.
http://news.sky.com/story/1104599/co-op-bank-seeks-to-fill-1-5bn-capital-holeI am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Yes, I'm still up 10% on my entry price (which had been showing unrealised gains of 25%on Friday); they have said they won't pay any discretionary divs except to the extent regulators allow.
At least there now some sort of properly articulated plan (albeit without pricing) so the market is probably thinking it's not as bad as it could have been. I see the retail bonds have gone pretty low now (CPBA lost 14% or so to about 45p in the pound, which is a bit less than the drop on CPBC but pretty damn low for a 5.555% bond...)0
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