Lloyd's bank share buy back commences...

bowlhead99

veryintrigued wrote: »

Another 15million bought back today!

With lumps bought last week and previously that must be upwards of 60million.

As you know, they are doing a buyback program under which the maximum they're willing to spend on buying back shares is a billion pounds between when they started it and Feb 2019.

https://www.investegate.co.uk/lloyds-banking-group--lloy-/rns/lbg-commences-share-buyback-programme/201803080700010354H/

15 million bought back today, that's cost them about ten million quid. Should we expect close to a hundred more similar updates as they gradually spend their billion? Even for an investor who wants to pay close attention to what their investee company is doing, it's like watching paint dry. It simply doesn't warrant the exclamation marks you're giving it

There's only so many times or ways I can say that the odd few tens of millions of pounds worth, being bought in dribs and drabs by a company with over forty billion pounds worth of shares in issue, is pretty inconsequential when the natural level of shares in the market being turned over is 100m+ per day.

It makes sense to do a program like this if you are in their position but if you're not a market analyst, it doesn't really make a lot of sense to watch it with eagle eyes and call out the transactions as they happen...?

veryintrigued

Bowlhead - within some of your very knowledgeable posts you do sometimes come across as very arrogant.

This is one of those times.

If you feel this thread is below you I don't see why you'd keep on returning to it?

If you're hoping i feel chastised for my intrigue on this subject or on the amount of type of punctuation you're going to be sadly disappointed.

Sorry for not being sorry.

worried_jim

I'm buying £205 worth on Friday. Watch the price rocket!

bowlhead99

veryintrigued wrote: »

Bowlhead - within some of your very knowledgeable posts you do sometimes come across as very arrogant.

This is one of those times.

If you feel this thread is below you I don't see why you'd keep on returning to it?

Apologies, no insults intended; I came back to it as it was a thread I'd been on before and I saw it close to the the top of the forum again so wondered if there had been some news, change of strategy, they'd already completed the program early etc- or what new insight or commentary was going on.

But the new update less than two weeks after the last was just a confirmation that they were still buying a few million shares every so often, just like they said they might be doing for the next ten months. So my brain did a little, "hmm, why is this thread still going, is it really going to get bumped time after time so everyone on the forum can see how many they bought each day? Now OP has read that this isn't abnormal behaviour for a company and knows the high volumes that get traded every day, what's the angle?"

I just didn't get it, so was curious about your motive for posting. I threw in the smiley to try to show I was expressing the curiosity in a light-hearted way: it's not like you owe me an explanation - it's just not 'real news'. (Other than needing to be put in announcements on a regulated news service, which does mean it's 'real news' , but not the interesting sort that usually makes people express surprise in their posts)...

worried_jim wrote: »

I'm buying £205 worth on Friday. Watch the price rocket!

That's the sort of post that makes sense to find on a forum like this. Some human interest (a person is investing into the share being talked about) combined with humour (I'm on board, now watch it leap in price! / watch it drop like a stone!)

Other than the "how does this work, what's it about" / "this is how it works, this is what it's about", the posts where people talk or joke about what they're doing about their investments are the typical sort of things I expect to see on investing threads more often than not.

You are of course welcome to put whatever you like on a forum as it would be a pretty boring place if it was just full of the things I expected I'd find.

ewaste

Sometimes I wish there was a bit more share or fund talk on the forum as the majority of the posts tend to be along the lines of people asking where to 'invest' money when they really mean to save money. They've already made it to MSE and then to this forum which has plenty of existing information on the main website and some excellent threads about regular savers and other interest paying accounts.

Although the threads I do enjoy reading are the ones where everyone including the original poster are trying to understand the purpose of the money they have and what risk they are or are not willing to take. The same goes for the threads where posters like Bowlhead, DunstonH, Silvertabby etc bring additional and quite specific knowledge that would take the original poster a while to find and probably still not be able to surmise what it means to them.

On the subject of Lloyds shares, I'm also considering buying some although I probably have a higher exposure to the UK than I'd ideally like to already especially via individual shares which the general consensus rightfully has an aversion to.

AnotherJoe

I've been reassured from this thread that were i to buy a few million shares this morning i can rest content I'm not affecting the share price.
However, just in case, I'm going to hang back a few days as i dont want any vultures jumping in here ahead of me.

bowlhead99

ewaste wrote: »

On the subject of Lloyds shares, I'm also considering buying some although I probably have a higher exposure to the UK than I'd ideally like to already especially via individual shares which the general consensus rightfully has an aversion to.

For a potentially lower risk investment there is always their preference shares (the ones with 9.25% nominal dividends paid in May and November (LLPC) have a yield a little over 6% and would be seen as more defensive, albeit without the same capital growth potential. Though if/when interest rates rise they would be expected to fall from their highish price to improve the yield.

ewaste

Thanks Bowlhead, I actually had a look at Lloyds recently after Aviva looked at cancelling preference shares and seemingly caused the value to tank quite a bit across the board for other preference shares. I don't currently hold much in bonds other than those in VLS80 so was looking at them primarily as a bond proxy / de-risking. As you say though interest rates will be on the way up albeit my bet is on slowly and yield is yield especially if i was looking for income.

My primary de-risking variable is that I'm young and still in the earning and accumulating stage of life, although I do take an interest in the wider market because of family at different stages of life.

veryintrigued

17million bought today!

Incredible scenes!

Theta101

Ex-Dividend today also, 2.05 pence.