It would be nice if the 2.3bn which is still set aside for PPI ends up not beig needed, and it could be used to buy back and cancel a portion of the govt holding. This would potentially be a double shot in the arm. Even better if they could use some retianed proficts to buy back an even bigger chunk and thus reduce the number of shares in issue by c. 25% and also take the company fully back into private ownership. Unlikely to happen however as it would need about 10bn and even with the PPI money theyu would need to find another 7.5bn. Wishful thinking though?
Personally I wouldn’t want to see a consolidation any time soon. The process will take up too much time and money and will achieve little.
I would prefer a buy-back program but, like AHollis alluded to earlier, I’m unsure it would be the best use of the company’s profits - but I could be swayed.
Before any talk on consolidations, buy-backs or whatever, I want to have concrete news about dividends. I want to see the back of HMG. I want to be confident that any PPI/mis-elling or similar debacles are a thing of the past. I want to see a bit more of this resurgent economy of ours. I want any and all of the other stumbling blocks, handicaps or millstones that you can think of, both domestic and foreign, to be cleared and remedied (or at least mitigated) and then see where stand.
I want to see a buy back and cancellation....it has worked in the past....it will create a "shortage" of shares and in simple economic terms "prices will go up" simple eg oil when production falls ie Iraq situation look what has happened at the pumps.
I think a form of consolidation is a strong possibility. However, they might use their dosh from the TSB IPO to put a cunning plan into action.
My view is that if it happens it will not be just cosmetic, they need to boost confidence. More likely to be a back door dividend for us long suffering investors. LLOY cannot award a dividend until the great God Cameron and his wee boy Osborne give them the nod but I'm sure that LLOY do have the right to buy back and retire shares which would have a positive effect on the SP and give us a sort of dividend.
They might even buy back and retire a lump of Cameron's holding which would be much better than dumping them onto the market. Maybe all of the above is just wishful thinking on my behalf but I guess we're all entitled to dream once in a while.
Good morning.Good write up from AHollis, makes good sense. The current SP is close to the HMG latest disposal.I hope the SP moves up higher but I fear that HMG next sale will decide the next level of resistance. Some figures due at 9:30 am , let us wait and see what happens GLA
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