Good luck GoldD....cant fault you for being frustrated with LLoy but eventually every worm must turn. Think oilies would be my first choice to throw my money at if financials hadn't already been beaten down to our current levels.
As I stated in an earlier post this week re announcements of Barcs UKFI I think Gideon can offload some of the remaining holding below the average price paid by HMG. The wording below from the Dec 2015 UKFi release is a little ambiguous in that it says the share will not be sold below the average paid etc etc .Does that mean every tranche sale has to be > 73 or the average. He has averaged 81 p thus far. I think that there is huge room for political spin and swerving on this one should he decide or indeed need to sell out to market or back to BOD.
Will be happy to close in blue today and can't see the bears and shorters out in force ahead of the weekend - most Dow closes have seen bear squeezes in the last hour of trading as there does not seem to as much appetite for holding short positions over night or the weekend.
UKFI Dec 2015
'As with all disposals, delivering value for money for the taxpayer is a key consideration and shares will not be sold below the average price per share paid for them. From the period beginning on 17 December 2014 to 3 December 2015, approximately 11.2 billion ordinary shares have been sold under the Trading Plan at an average price of greater than 81p per share.'
five years of artificially high prices have done lasting damage to Cartels longer term aspirations as it has facilitated the entry of higher threshold cost alternatives to gain a foothold in global energy supplies. Solar has made genuine inroads ion commercial power generation and even the current top oil producers know that energy can be exported via cable as well tanker. People often talk about killing off fracking. Aint going to happen. The cost is drilling the wells and laying the infrastructure once in place marginal cost of expansion falls. Look at the North Sea- even a hostile environment can be tamed despite tax predatory taxation regime. OPEC have been price takers for the best part of decade as the big Swiss based trading houses through massive leverage have dictated how much we pay. Don't shed a tear for these ****** now they are sweating a bit. It will take time to little down the current stockpiles and as such it probably won't be until next year that the over hang is more reasonable. OPEC has been here before and more than once and a deal will materialise even though it will not be easy between the ME's top political protagonists. But many have underestimated the regional capacity to compromise in the past and will doubtless do so again as they seem to know best. as someone who has worked in the region and earned a decent living and had a great time working in the industry I am reasonably sure this will pass as it has before. I for one will be reticent to write fracking off. Besides all else it is far too much fun to do it.
I keep reading on here that GO has to sell the shares at 73.6p to break-even but as this was an average price at the beginning of 2015, surely that is a lot lower today. If he has sold 30% of them at an average of 80p surely he can let the last 10% go for 55p and still show a profit. Does anyone agree with this or can they tell me what I'm doing wrong?
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