Sunday 22 July 2018 | ShareProphets: The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares
I enjoyed Nigel's update article on his mini 'dividend munchers' ideas portfolio earlier today. I would completely concur with the Vodafone (VOD) call and came to a similar conclusion myself a few weeks back (see here).
Last October I talked positively about Lloyds Banking Group (LLOY) versus one of its challenger peers, noting:
Hello, Share Soupers. The fear of increasing interest rates here and in the US caused the recent glitch in share values. But it’s not been fully realised that such hikes will help the balance sheets of British banks. So with the year’s results for Lloyds Group (LLOY) expected on Thursday, allow me to make the case for investing in this under-estimated bank.
Hello, Share Miners. The four big British banks are still avoided like rattlesnakes by many share shifters. But there will come a time when everybody finally forgets what happened in 2008 - and most of the other banking shocks, since.
Putting a portfolio together involves making decisions by comparing and contrasting one company against many others and wrapping it all up in some overriding sector/macro strategy. Simples, right?! For reasons too obvious to state, the financial sector had a shocker during the global financial crisis and which, in due course, led to the creation of a new competitive grouping - the 'challenger banks'. As one traditional name (Lloyds Bank - LLOY) and one new challenger name (Metro Bank - MTRO) have both reported today, let's compare and contrast and see if either pass muster. Prepare the cage...
Hello, Share Mixers. As you may have gathered, I favour investment in all four big British banks at the mo. My main reason is that each time one of them announces new figures, its balance sheet seems to have improved nicely and the share price usually shoots up.
Hello Share Dredgers. Once again I bring to you Lloyds Banking Group (LLOY) as a share worth considering. This simple statement will draw flak from my good friend Wildrides, but the case for Lloyds is getting better.
Hello Share Planters. Here I am again, risking a commendation to look at the shares of one of the major British banks. This time Lloyds (LLOY) seems to me a worthwhile proposition. I am heavily over-exposed to this lot, so I personally hope so.
Hello Share Plodders. For a year or two now I've been saying that British banks are worth a re-look, if only because the number of fines and compensatory payments are bound to diminish soon. Now it looks as though the bank shares I've been suggesting most are set to rattle ahead even faster than the last few weeks. And their recent progress has already been encouraging.
Hello Share Baiters. That awful share to hold, Lloyds Group (LLOY) may be getting less arduous. There is some optimism in the City that the current disappointing share price may rise 20% or so to beat 75p. Presently it’s around 66p.
Hello Share Plungers. As usual, when raising the thorny issue of whether banks are ever going to get back on track after the trauma of 2008, I am attacked by the symptoms of nervousness. But I still think all British banks will see fairly hefty share rises over the next few years. This is partly because outrageous fines issued by interfering busybodies and compensation claims will surely start to dry up.
Lloyds Bank (LLOY) boss Antonio Horta-Osorio stands accused of having illicit relations with Dr Wendy Platt, Director General of the Russell Group of Universities, whilst at a conference in Singapore. Moralists howl for his sacking for playing away with Dr Wendy. They have it all wrong.
On 28th July Lloyds Bank (LLOY) published decent enough interim results, hiked its payout by 13%, and announced that it was closing an additional 200 branches and firing 3000 banksters by the end of 2017. Naturally the BBC led the media in blaming Brexit for the job losses even though that was not what Lloyds stated at all. This is quite remarkable spin and lies from the left wing press and BBC. I see that, in some quarters, Lloyds stands accused of using Brexit as an excuse for cost cutting, that is wholly unfair.
Very, very occasionally applying some of the techniques applied by the ‘teenage scribbler’ analysts in the formal and overpaid analyst sector can be useful. Today’s numbers from Lloyds Bank (LLOY) is a good example. As I write the shares have dumped today because today’s Q1 trading update contained some profit numbers that did not meet hopes. Actually to be more precise some complex buying back of bonds has complicated the reported numbers. The ‘teenage scribblers’ have called it a ‘miss’ and down the shares go. However - as is the way with analysts – those same scribblers after a bit of reflection will crank out their formal number crunching and conclude the stock is ‘cheap’. In short the voting machine is cautious whilst the weighing machine gets more optimistic.
Last May, shares in Lloyds Group (LLOY) reacted to a better-than-expected set of results by rising to very nearly 90p. It was an improvement that put the other high street banks to shame. But turmoil in Europe and a slowing Chinese economy sent the price dribbling down soon afterwards.
Hello Share Shufflers. It’s probably time we revisited a share I know is very popular among the astute denizens of this superlative website. I refer to Lloyds Group (LLOY).
Hello Share Seekers. You may remember Harold Lloyd, the famous silent picture star, who climbed tall buildings and kept falling off them.
Hello Share Swipers. You have to admire the sheer cussedness of stock markets. Nobody could accuse most of its movements of following predictable patterns.
Hello Share Scrunchers. The four big British banks are looking like bargains to me. And I know that as soon as I say something like that, the many who take an opposite view will be sharpening their pencils.
Lloyds Bank (LLOY) is a real letdown for private investors, these days. And I wonder why. My view is that the government are, behind closed doors, flooding the market with their own shares. Obviously, if two many buns are knocking about the cafe, the public appetite wains.
Hello Share Sloggers. There’s a lot to be said gang for only investing in Footsie giants. Or at least companies which are big, rock solid and constant cash earners.
Hello Share Splashers. I’ve been trying to de-clutter my over-stuffed home by selling at a car boot sales. After three hours of just sitting on my car seat, I made an easy 60 quid. All very enjoyable in the sunshine.
Hello Share Shovellers. There will be the usual shouts of horror when I mention shares in the four big British banks.
Hello Share Squidgers. Just where is the Lloyds share going? May I humbly opine that it will go a lot further than it has already done in the last week or so – even if the latest rise in value has been pretty remarkable.
Hello Share Twiddlers. So if the Tories get in again they will sell off Lloyds (LLOY) shares to the public at a discount.
So Lloyds Bank (LLOY) shares have crawled ever so painfully and slowly above 80p again. We have already been in this territory several times.
Shareprophets has been at the forefront of exposing the AIM cesspit and crony capitalism, but I'm afraid there is another scandal about to break at one of the UK's largest banks, owned in part by the tax payer. If you thought that the reputation of bankers couldn't get much lower, read on. They have clearly learned nothing about the way that we expect them to behave and, despite being involved in scandal after scandal, they still don't seem to be able to determine right from wrong.
Lloyds (LLOY) is a bank which deserves a better share price. Its shares reached 86p in 2014, which was a huge improvement on its best performance in the year before.
Fresh from its successful pass of the stress test more of Lloyds (LLOY) is going to be sold off by the UK government. As I’ve mentioned, the UK government currently owns around 24% of Lloyds Banking Group, but this figure could be reduced to around 20%.
Lloyds (LLOY) has passed the recent ‘stress test’ imposed by Prudential Regulation Authority, the Bank of England’s regulator. This test examined whether banks could cope with a severe economic downturn. The woes included a 35% drop in house prices, a hike in interest rates and unemployment reaching a high of 12%.
Hello Share Mashers. Each time I do a piece about Lloyds Group (LLOY) it shoots to near the top of the Shareprophets 'most read' list.
.Hello Share Shunters. There is always a welter of critical items on this fine website. Unlike most financial sites, there is not an over-arching bias to praising companies to the skies.
Lloyds (LLOY) results yesterday made mainstream news. There was plenty of interesting information in there for investors. Let’s start with perhaps the most shocking aspect.
Thankfully all the UK Banks have passed their stress tests, however Lloyds only just managed to. The tests were implemented by the European Central Bank, and were designed to see if they could cope with a three year downturn. 130 banks in all were tested, with 25 failing, a large proportion of which were Italian. Monte dei Paschi was a notable Italian failure, and its shares have tumbled down 20% today. Regulators have banned all short selling of its stock.
Lloyds Banking Group (LLOY) has been quite a volatile stock lately, but its shares enjoyed a slight Friday rise to 76.74p. Although these reports are not confirmed yet, mainstream news channels have been reporting that they Lloyds aims to cut 9,000 jobs, approximately a tenth of its staff.
Lloyds Banking Group (LLOY) shares are currently trading at 74.01p with a PE that is hard to determine of and a yield of 0%. Some estimates give the current year PE as 10 at the moment. Does that make it a buy or a sell?
Hello Share Sharpers: Uncle Tom is showing his tremendous moral courage on this outstanding website yet again. Let’s all marvel at some of his forthright and detailed posts over the last few days. May I also exhibit a small show of bravery by drawing your attention once again to Lloyds Bank (LLOY). This is perhaps more foolhardy than courageous, though, as the beggars have let me down so often since the big crunch days of 2008.
Hello Share Sifters: Everyone I know – well, about 20 of them, have shares in Lloyds Group (LLOY). They are hopeful that the Government will put its slice of the company up for sale at a quid a share. Also that a dividend will start to come their way.
It's the good old summertime And shares, according to Uncle Tom Winnifrith, are about to end in tears with a sudden end to the bull run. So I thought I would stage a little diversion from my usual favourite subject of shares which are going to rocket, by looking at a different kind of speculation.
Hello Share Mates: It's gratifying to find that my view expressed on this magnificent website that it was worth stagging TSB shares turns out to be on the button.
Hello Share Spinners. Most people get their cars serviced. Far fewer bother to get their own bodies serviced.
Hello Share Shakers: May I return to the vexed question of Lloyds bank (LLOY)? I do it with fear, because every time I mention this institution in a friendly light, there is another whammy in the wings to send the share price crashing down again.
Hello Share Ticklers: This is a really difficult time for armchair tycoons like us. We sell a load of shares to balance our tax position on the last day of the old financial year, April 5th – though this time it was really April 4th, due to the inconvenient timing of the weekend.
Hello share movers. I have to be a bit careful about what I say about Lloyds Group (LLOY). When you have a loada dough invested in a company, then you become a little optimistic. And maybe I shouldn't be.
Hello Share Shunters: Lloyds Bank (LLOY) has lost me a lot of money. The latest news – and there seems to be bad news every week – is that they've had to set aside another shedload of money to pay for poor insurance advice in the past.
Greetings Share Movers: I've had a really good week. For a change my bag piled on more value than the average for a fairly modest rise in the Footsie.
Hello Share Swappers: For a change, it's been a good week for the banks. My usual rush to finish my tax return before the end of January deadline was enlivened by watching Lloyds (LLOY) rise fast.
Hello Share Monkeys: It can be dangerous to talk about patterns of behaviour in Shareland. As you know, the whole shebang is contrary and does not follow the normal rules of logic.
Hello Share People: I won the lottery at the weekend – well £50, anyway. Is this a good omen for the old shares this week? I don't actually think we need a good omen – the Footsie should do rather nicely without that kind of help.
Hello Share People, The most interesting shares in my bag at the mo are probably Lloyds Group (LLOY). They are rising quite nicely. And it wasn't too long ago that they were worth half as much as they are today.
Any buying interest I have had in banks has been limited to HSBC (HSBA) and Standard and Chartered (STAN) whose origins and traditions permitted to pass through the great early twenty first century banking crisis without the ignominy and pain of being bailed out by society at large. Once bitten twice shy, has been my watchword on Lloyds (LLOY) and RBS (RBS).
There are two things in life we do not say enough: the first is of course how much we love each other, and the second what a bad idea bailing out the banks was in 2007 – 9.
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