TSB float?

vectistim

With all the news reports today about this coming next month (or half of it), any initial thoughts on whether it's worth chucking a thousand or two at it?

[This sentence is inserted to ward off posts about diversification, risk of single share, using funds/trusts instead, not to use investment when saving would be more appropriate, etc.]

planteria

the main thought i have is that i think Lloyds was a fairly obvious buy a couple of years ago, on reflection;) a couple of my colleagues invested fairly heavily at that point.
looking at it now, im happy holding Standard Chartered and keep glancing back at HSBC.
TSB is looking like quite a nice, straightforward bank, without baggage..but no exposure to growth markets.

mel48rose

planteria wrote: »

the main thought i have is that i think Lloyds was a fairly obvious buy a couple of years ago, on reflection;) a couple of my colleagues invested fairly heavily at that point.
looking at it now, im happy holding Standard Chartered and keep glancing back at HSBC.
TSB is looking like quite a nice, straightforward bank, without baggage..but no exposure to growth markets.

So are you saying you wouldn't touch it then??

sabretoothtigger

:laugh: Its a reasonable buy but it depends on the price to profits forecast

[Deleted User]

Hi,

I bought shares in the original TSB privatisation, later merged with Lloyds, sold them last year for 49p.

Floated on 29 Sep 1986, initially 50p paid, with the second instalment of 50p paid on 1 Oct 1987. The 50p-paid shares jumped to 85.5p immediately. When the second instalment was paid, they were at 141p.

Then there was bonus of 1/10 if you had held your shares since issue. This was issued on 2 Oct 1989, at which point the shares were 115.5p, you having say 110 shares for which you had paid £100. They started to gather pace during 1993, and rose to 309p at the merger.

planteria

mel48rose wrote: »

So are you saying you wouldn't touch it then??

i'm not advising against...but it doesn't really appeal to me. i would buy HSBC or Standard Chartered instead.

Doshwaster

HL have a good FAQ on the IPO

http://www.hl.co.uk/tsb/flotation-faqs

£750 to be the minimum investment.

I'm going to think about it. I don't see it as a no-brainer like the Royal Mail one was, but it could be worth a long term hold.

Thrugelmir

Depends on yield whether I invest or not. Hardly a growth stock in what is going to become a highly competitive but shrinking market. Historically the UK is adequately served with 4 main players. So difficult to see all the emerging players surviving longer term either.

Scarpacci

I'm going to think about it and see how it's priced. I can see a place for TSB in my portfolio. I don't currently have a UK-focused bank, having HSBC and Standard Chartered, and I've been on the look out for one as a smaller investment. The bank seems well placed in a solid financial position, and having a clean-sheet with regards to the never-ending bank scandals is an advantage. How successful they will be at growing is a concern, and I wonder at what cost the growth will come if it's driven by high-interest current accounts.

The lack of dividend until 2017 is somewhat disappointing and, since I generally focus on dividend stocks, I would be ignoring one of my central goals of investing. I'm not sure the free shares is anything more than a gimmick, really. It's not a sure thing but I will consider this.

Masomnia

I had planned to, but my finances aren't there at the moment.

I think it has a lot going for it. Lloyds is keeping all the legacy issues, it's a boring and safe bank which should have an attractive yield when it does start paying, good market presence. Hard to see where much growth will come from, but I think it will generate plenty of cash and pay that out.

I'd be very disappointed by the lack of dividend till 2017 too.

fzx5v0

I have been thinking about a stocks and shares ISA and TSB share options. If i opened an ISA with say Iweb would I be able to purchase the TSB options through the ISA?

thanks