What's happening to banks share prices??

in Savings & Investments
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  • edited 15 January at 10:52AM
    ThrugelmirThrugelmir Forumite
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    edited 15 January at 10:52AM
    Very true eskbanker. It's been a nightmare for shareholders in banks since 2008.
    In addition to the problems created by lax lending. We all know now that pre GFC profitability was inflated by PPI. One only has to take the hit taken by LLoyds. In essence wiped out the entire pre decade profitability of HBOS. Such was the sales driven mentality of the senior management board at the time. Cleaned up balance sheets, more streamlined (branch closures) etc. Time to look again. In the past I've held bank shares but haven't more recently. Reported figures containing too many adjustments to be sure of of what's actually going on. 

    Reminded me of this. 

    https://www.ianfraser.org/a-brief-history-of-halifax-bank-of-scotland/

    The blog is worth a read. I heard the whistleblower Paul Moore speak. Was truly shocking as to the internal culture at HBOS. 
  • eskbankereskbanker Forumite
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    Very true eskbanker. It's been a nightmare for shareholders in banks since 2008. But that has no bearing on the wisdom of exercising a stock option at a favourable price. Brie should. 
    Possibly, but we don't know the option price, so the fact that the current share price is significantly higher than it was a year ago still doesn't necessarily mean that it's a good idea to jump in just now.
  • RogerIrvineRogerIrvine Forumite
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    Share price yesterday was higher than anytime in the last 4 3/4 years but, if somehow the option price was set higher than 215p, don't exercise the option. Otherwise exercise the option.
  • edited 15 January at 3:27PM
    Thumbs_UpThumbs_Up Forumite
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    edited 15 January at 3:27PM

    The fundamentals of running a profitable domestic bank are all there for a SP rise this year. The only thing that can stop this galloping away is war in the east and south east Asia.






    ''Enemy Coast Ahead'' Guy Gibson V.C.
  • BrieBrie Forumite
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    eskbanker said:
    Very true eskbanker. It's been a nightmare for shareholders in banks since 2008. But that has no bearing on the wisdom of exercising a stock option at a favourable price. Brie should. 
    Possibly, but we don't know the option price, so the fact that the current share price is significantly higher than it was a year ago still doesn't necessarily mean that it's a good idea to jump in just now.
    The option price is £1.20 and when the option window opened the share was around £1.90.  I had this vague thought of holding out for £2 but the price then dropped until this last week really when it topped out yesterday at £2.20.  Exercising the option and selling isn't immediate so there's no guarantee that I'll get that day's best price but one would like to be in the neighbourhood of it! 

    I shall, at the right moment hopefully, buy and sell rather than hold the shares.   I've got another 3 option pots but none are available sooner than 2024 all at similar or better option prices so hopefully this trend will continue.  I've enough Barclays shares in another pot that will help fund the retirement if the prices hold/continue to rise over the next couple of years.   
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • eskbankereskbanker Forumite
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    Brie said:
    eskbanker said:
    Very true eskbanker. It's been a nightmare for shareholders in banks since 2008. But that has no bearing on the wisdom of exercising a stock option at a favourable price. Brie should. 
    Possibly, but we don't know the option price, so the fact that the current share price is significantly higher than it was a year ago still doesn't necessarily mean that it's a good idea to jump in just now.
    The option price is £1.20 and when the option window opened the share was around £1.90.  I had this vague thought of holding out for £2 but the price then dropped until this last week really when it topped out yesterday at £2.20.  Exercising the option and selling isn't immediate so there's no guarantee that I'll get that day's best price but one would like to be in the neighbourhood of it! 

    I shall, at the right moment hopefully, buy and sell rather than hold the shares.   I've got another 3 option pots but none are available sooner than 2024 all at similar or better option prices so hopefully this trend will continue.  I've enough Barclays shares in another pot that will help fund the retirement if the prices hold/continue to rise over the next couple of years.   
    So even if the price had stayed at £1.90 you'd already have been quids in, but if your target was £2 then why didn't you act as soon as it reached that on the 6th?  It's obviously a judgement call as to exactly when to commit - in another week it could be £2.40 or below £2 - but if you already have a holding earmarked for retirement then you obviously rate their prospects and are presumably expecting further growth?
  • BrieBrie Forumite
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    @eskbanker

    I don't have the time nor the inclination to look at the prices every day.  

    Honest truth is I expect I didn't act as I'm greedy and like a complete newb once I did see the prices rising I kept thinking...maybe at £2.10, maybe at £2.15, maybe maybe maybe.....I know I should know better.

    And it's not so much a case of rating their prospects (my days of leisurely reviewing business reports and assessing purchasing strategies are behind me) but rather having fallen into sharesave & sharepurchase schemes.

    "Never retract, never explain, never apologise; get things done and let them howl.”
  • RogerIrvineRogerIrvine Forumite
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    Fair enough and good for you but don't you have to decide before a certain date when the option runs out?
  • eskbankereskbanker Forumite
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    Brie said:
    And it's not so much a case of rating their prospects (my days of leisurely reviewing business reports and assessing purchasing strategies are behind me) but rather having fallen into sharesave & sharepurchase schemes.
    Such schemes are often very cost-effective ways of acquiring shares at bargain prices, but don't get sucked into the notion that this should influence whether or not to hold them thereafter!  Ask yourself what you'd choose to do with the cash equivalent, and if the answer isn't 'buy Barclays shares' (based on your view of their prospects and/or your ability to research them) then crystallise your gains and invest elsewhere instead....
  • BrieBrie Forumite
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    @RogerIrvine - it's a 6 month window so I have until the end of April.  I don't intend to leave it that long as I plan on slinging the cash proceeds against the mortgage.  

    @eskbanker - I completely agree.  These are the only shares i have these days and I only have them as I can get them at bargain prices.  The save scheme is of course completely risk free, although not as obviously profitable since they eliminated the bonus portion.  And the purchase scheme I know I'm buying at half the market price so have had the bliss of shares at 25p as well as £2.50.  But averaged out over the long term and selling at the full market value it should be result in a nice golden egg.  Assuming the prices are favourable in a couple of years.  Of course if the share price shot up to the past high of £7ish I would def start to unload sooner!!  (accounting of course for tax and NI rules)


    "Never retract, never explain, never apologise; get things done and let them howl.”
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