In the past year, Barclays (LSE: BARC) shareholders have been through a torrid time. The bank appeared to be recovering nicely from the crisis, but in August 2015, Barclays shares started to turn tail again -- since 31 July last year, we've seen a 43% fall to 161p! The bank's announcement that it was to slash its 2016 dividend by more than 50%, after reporting a fall in full-year profits for 2015, didn't help. It took many people by surprise, including me, who had been seeing Barclays shares as a great recovery prospect prior to that.Â The bank also said that it still expects to "pay out a significant proportion of earnings in dividends to shareholders over time", although it looks like were going to be stuck with yields of under 2% for at least a couple of years. The bigger picture But before we start thinking things can only get worse and we should dump Barclays shares, let's take a wider look at the company. The 3p dividend that Barclays intends to pay this year looks a bit paltry, especially when rivals, like Lloyds Banking Group,Â areÂ ramping up their annual payments. But it would be covered more than five times by forecast earnings per share. So why such a big cut? Barclays has a new chief executive now, in the person of Jes Staley, who took the helm on 1 December. And when a new boss comes in, that's the perfect time to make tough decisions and get away with it. There's restructuring going on, there's cash that needs to be saved, and you can pare expenses to the bone when you're the new boy and everyone will blame the need for it on the performance of your predecessors. I don't mean that cynically either. I'd much rather see Barclays taking a longer-term view of its overall finances and targeting the kind of stability that should hopefully lead to decades of profits for its shareholders, than focusing on short term issues like this year's dividend. Such a retrenchment is often the right thing to do, but the short-term focus of the investment institutions and the opprobrium that can be heaped upon a boss's head can make that kind of decision even harder for an incumbent. A new boss, on the other hand, has more freedom to do the right things. Undervalued by half? Current forecasts are going to come with a significant margin of error right now, but if they're close then Barclays shares would drop to a P/E of only around 7.5 based on a 2017 prediction of a 40% rise in EPS. And that's got to be way too cheap. In fact, it's only a bit above half the long-term FTSE 100 average of a little over 14, and we're talking about a strong and strengthening bank here and not a company that's on its last legs. To recover from the recent price slump, Barclays shares are going to have to put on 80% from today's price, so is such a near-doubling feasible? An 80% rise would bring the P/E back up to 13.5, which is still below the index average, and if Barclays really has solid long-term prospects with a high l
LONDON, May 4 (IFR) - Martin Rejna has left Barclays (LSE: BARC.L - news) , according to sources, where he was a managing director in the banking business. He was most recently covering Central and Eastern Europe, Middle East and North Africa, according to his LinkedIn profile and a source familiar with the matter. Rejna joined Barclays as an associate director in 2006. He moved to Barclays from ING, where he worked between 1997 and 2006.
(ShareCast News) - Barclays has sold down its stake in its African subsidiary to 50.1% after a placing in South Africa at a price of 126 rand (584p) that valued the shares at 13.05bn rand (Â£603m). Confirming an announcement from late on Wednesday, Barclays' investment bank coordinated a placing of 12.2% of Barclays Africa shares and the group has agreed a 90-day lockup over the remaining majority stake.
In March, new chief executive Jes Staley announced a set of strategic initiatives that included plans to divest part of the group's 62% shareholding in Barclays Africa over the next two to three years to allow it to de-consolidate the subsidiary from an accounting perspective and, eventually, a regulatory perspective. GLA
Is being suppressed in the lead up to Brit's vote, The EC is just a racket protecting big business , German auto companies are able to dodge claims in the Eurozone that it cannot in the US, Porsches with blown up engines a problem that they have ignored for 10 years , BMW's with failed injectors 150000 recalled in the US, VW emissions scandal, the law works for the consumer in the States and forces them to pay ,in Europe Land they get away virtually scot free.
Cheers Nims , hanging in there with lloyds hoping for a bounce from these levels, not a fan of supermarkets at moment , keeping an eye on them to trade rather than long term investment at moment , have s profitable day mate GLA
Lloy hitting my 63p target, I might break a rule tomorrow n jump in. I am more a sbry fan then tesco, I did say to elprofessor to watch when sbry drop, I was expecting £2.75 not £2.64, but still watching intently, if £2.55 is Met or breached then could be worth a punt. Tesco I am uncomfortable with Graham number n debt not favourable, also no drop or rise figure can be ascertained wait a few days m there may be a clearer signal on which way tesco will go.
I have run barclays through the mixer and it is still bullish in my humble opinion. There is a lot going on around the markets, hsbc results disappoint, brexit, mayoral elections also having n impact. If you analyse barclays against its peers it is not doing too badly £1.90+ is still my target. I understand little drops scare people and bring out doom n groomers but investing in markets is about patience,
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