HBOS shares

sabretoothtigger

HBOS Extends Losses On Liquidity, Funding Concerns
By Ragnhild Kjetland
Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--The shares of U.K.'s largest mortgage lender HBOS PLC (HBOS.LN) extended losses Tuesday after the bankruptcy filing of Lehman Brothers Holdings Inc. (LEH) over the weekend sent financial stocks reeling worldwide.
All financial stocks were deep in the red both Monday and Tuesday, but HBOS was the hardest hit, as analysts cited concerns about the bank's funding position and its exposure to credit risk in the ailing mortgage market.

At 0900 GMT, HBOS was down 31 pence, or 13%, at 201.5 pence, making it once again the biggest loser on the FTSE 100 index. On Monday, HBOS closed down 49.5 pence, or nearly 18%, at 232.5 pence. At one point, it was down 36%.
Collins Stewart analyst Alex Potter said Monday's sharp fall in HBOS' stock price was driven by reports that HBOS has more than GBP110 billion of debt refinancing to face in the coming months.

But he said he doesn't believe that HBOS has a liquidity problem, and said that for the current discounted share price relative to the book value to be justified, HBOS would have to make significant further write-downs, and be hit by a loan-loss rate that is worse than in the early 1990s recession, which he sees as unlikely.

He noted that a fire-sale of Lehman assets could generate a further downward spiral in asset values, causing more write-downs across the sector, "but we note, firstly, that Barclays PLC (BCS) is more exposed than HBOS, and that HBOS is now discounting significantly lower marks on its assets."

Commenting on the reports of HBOS debt refinancing commitments, Potter said that "clearly this is a rolling event," meaning only parts of the debt matures in stages.
Potter assumes GBP128 billion in debt-refinancing commitments but said he isn't concerned. HBOS has about GBP60 billion in liquid assets that could be spent on repaying debt. He estimated that HBOS collects loan repayments of about GBP30 billion each quarter.
Potter pointed out that banks still lend to each other on a shorter-term, rolling basis, even if it is expensive.

Owch, pe of below 2 now and who knows what yield if you believe that

ad44downey

King of the Turkeys, HBOS crash 13% today so far

On top of yesterday's 17.5% fall it is truly a bleak time for them

setmefree

Share Price 196.50

http://www.youtube.com/watch?v=LY1RNuzT4XU

zag2me

Hmm is it worth transferring my isa out of halifax?

At this rate their shares wont be worth anything and its sounds like its going the same way as northern rock.

sabretoothtigger

I wouldnt leave more 35k in any one bank now anyway but Hbos isnt the same case as NR imo though its profits and losses are tied mostly to house repayments.
B&B has barely moved today

esbo

165.5 I expect there is a bit of profit taking going on as the short-sellers buy their shares back. They must have borrowed a hell of a lot of shares before they dumped them on the market.

I expect the will try the same thing with British Gas (Centrica) next.

Actually Centrica up 5% I wonder how they managed that??
It must cost them a fortune buying gas, I know I can't afford to.
Must have some good managers there to buck the trend.

AJ1982

141.60... I got 1.30 of spare change in my pocket, soon ill be able to afford a share

esbo

144.25 -88.25 Don't panic :eek:

altyfc

Nick_C wrote: »

12:12 today would have been an excellent time to buy HBOS - you could sell now for a 25% profit (assuming you bought 1,000 quids worth).

Commission aside (since it doesn't really impact much on overall %s), wouldn't the amount you invest be irrelevant to the % profit you make? ie. you'd still make 25% whether it was £1,000 or £1,000,000.

Incidentally, had you bought at around 12pm and kept them, you'd now be down by down from a share price of approx. 157p to one of approx. 138p. So yes, that kind of "investing" is extremely risky.

setmefree

Share Price 145.40 :wave::wave::wave:

http://www.youtube.com/watch?v=wP1w5Hl8D0E