The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Im not so sure that the post divi drop will be in the 5% as norm because the buy back will still be ongoing for a while yet and may well prop up the expected drop, we will see.
We are very well thanks. No I decided to keep and get back on track not racing but just some fun. However i did put it up for sale but winter market was not good, if it had sold I 100% would of purchased in low 1.40s and topped up, but you still gotta live and have a bit of fun right as much as I like making money ha. I would assume we still the ordinary drop after the divi, I don't re-invest divi's so its nice to get something out of the stock again. ATB.
Nice move. Its nice to see something being done and some direction, long may it continue but time will tell.
Sold out yesterday after realising the price i paid in 2019 is the same today, BARC SP has been useless for years and has already run out of steam at this current value.
wish you all good luck with it
Barclays to sell $1.1bn of US credit card debt to Blackstone
Barclays (BARC.L) has agreed to sell about $1.1 billion of credit card debt in the United States to Blackstone , in a deal the British bank said would free up capacity to expand lending and reduce balance sheet risk.
Barclays said the agreement reflected its recently-announced strategy to prioritise growing lending to consumers, and would reduce the bank's risk weighted assets by around 1 billion pounds.
Banks globally have been making greater use of credit risk transfers to shed risk from loan portfolios, Reuters has reported, with investors sharing the risk of losses.
Blackstone's investment has been made through insurance accounts managed by the company's asset-based finance group. Barclays will continue to service the accounts for a fee.
Barclays' investment bank acted as an advisor to Blackstone on the transaction.
"During our Investor Update, we said that we would leverage strategic partnerships to execute risk transfer agreements to reduce capital requirements. I am delighted to announce this first agreement in our U.S. cards book," Barclays Finance Director Anna Cross said.
Do not listen to them brokers they are all wrong, am not after the dividend here it will go up bit more tomorrow
RBC raises Barclays price target to 265 (230) pence - 'outperform'
Barclays PLC (LON:BARC) will increase its dividend on the 3rd of April to ÂŁ0.053, which is 6.0% higher than last year's payment from the same period of ÂŁ0.05. Although the dividend is now higher, the yield is only 4.9%, which is below the industry average.
See our latest analysis for Barclays
Barclays' Earnings Will Easily Cover The Distributions
The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock.
Having distributed dividends for at least 10 years, Barclays has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Barclays' payout ratio of 29% is a good sign as this means that earnings decently cover dividends.
Over the next 3 years, EPS is forecast to expand by 47.1%. The future payout ratio could be 29% over that time period, according to analyst estimates, which is a good look for the future of the dividend.
Dividend Volatility
While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The annual payment during the last 10 years was ÂŁ0.065 in 2014, and the most recent fiscal year payment was ÂŁ0.08. This works out to be a compound annual growth rate (CAGR) of approximately 2.1% a year over that time. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past.
The Dividend Looks Likely To Grow
With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Barclays has impressed us by growing EPS at 25% per year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.
Barclays Looks Like A Great Dividend Stock
Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Morning JayK, all good thanks. Hope you and your clan are doing well. Not sure if you sold your car or not?
That's exactly how I read it also. However, i wouldn't want to cloud anyones judgement. It will be interesting to see if on Thursday, post-div, the share responds with a text-book drop of the same circa div-amount?
Regards, MrA
@makros, I guess your right and so many brands have issues but Mclaren seems to take the brunt of it. I do know a few friends that have had 12C and again many many had gearbox issues, even the 650S has niggles. Whilst I'd love a 600LT its beyond sensible budge so a 570 which I can tweak a bit and Litchfield have some good packages for it (I track my cars) or a 650S which is older but more capable. A lot of my friends use V-Engineering for servicing and maintenance, ex Mclaren guys. Our Macan we've had for 6 years being 1 year old when we purchased it and touch wood the transfer box is ok just hit 40K miles, however Porsche did give goodwill of 10 years to owners even if you don't have a warranty, again I never ran extended warranty and its been ok, same for my 981 Boxster GTS and Cayman GTS, they were pretty solid. But then you get the 911.1 GT3 needing new engines and being given 10 year good will engine warranty! Currently I am in a tweaked BMW M2 Competition Litchfield have fettled with it and I finally get back on track next week after 4 years of house moves, 2 kids etc, will be somewhat different from my Radical SR3 RSX but I am super excited to be back! Maybe I'll end up keeping the M2 and just putting the left over cash into investments but thats just boring right haha. Have a good day buddy!
My reaction is to sell my shares before the year end. My losses will offset any tax due on the sale of quality shares i am selling. Good luck to those of you staying with ie trusting the existing "management"
Morning MR A, hope your well. So basically he is saying keep these guys in as they are my friends? Ha, sorry feeling cynical, either that or he believes these guys can and should be given the chance to turn it around, which is the key bit in all that article for me.
Morning All,
To those that cannot log-in to this site of citywire.com. I have copied and pasted accordingly.
Regards, Mr A
Activist investor Jeremy Hosking has questioned what he sees as a â15-year share price undervaluationâ of Barclays, following the bankâs results today.
The lender implemented a ÂŁ2bn cost-cutting drive on Tuesday, alongside plans to return ÂŁ12bn to shareholders over the next three years.
However, the Hosking Partners founder, who is a long-term shareholder in the bank, suggested shareholders had been given a raw deal.
âThe 60% discount to tangible book value either demands surgical action or an acknowledgement that Barclays has massively overstated its shareholdersâ funds via dodgy accounting,â Hosking asked. âWhich is it to be?
âShareholders would benefit from a drastic shrinkage of Barclaysâ consolidated balance sheet, the consequential creation of excess capital, and the return of that excess to shareholders via sustained buybacks.â
Barclaysâ stock has traded sideways for five years and remains well below its pre-global financial crisis peak of 756p, putting chief executive CS Venkatakrishnan under pressure. Shares in the business were up 5.7% to 158p on Tuesday at 12.15pm.
As part of the shake-up of the firm, ÂŁ12bn is set to be returned to shareholders via dividends and buybacks over the next three years.
Much of the aforementioned ÂŁ2bn cost-cutting drive will be in the corporate and investment bank, with ÂŁ0.7bn of cuts earmarked in this area.
Hosking has been particularly scathing of investment banking, although he does not believe that eradicating this unit would be a silver bullet.
âShorn of the investment bank, Barclays would probably carry the valuation afforded Lloyds or Natwest, which would hardly be a case for shareholder rejoicing,â he said.
âShareholders should vote against the re-election of Barclaysâ directors until a coherent way forward is in place and agreed with investors. This business-as-usual circus has gone on for too long.â
Thanks for bringing the historic perspective. My calculation has assumed no revenue and RoTE growth. The investment bank environment may improve in this 3 year period. US stock index has been running at all time high. There is a high chance a correction/high volatility period in next 3 years, which will further bump up the investment earning just like covid-19 period. Let's see how Venkat turns around the bank.
Https://uk.finance.yahoo.com/news/terry-smith-never-invests-banks-130000308.html
@JamesYoung, that would basically take the share count to 2013 level before the capital raise. Shares were around 300p then.
@jayK, yea you can only give verdict on personal experience really, back in the day my Tuscan(speed 6) was back and fore like a yo yo, I had an early Mclaren12c it was rapid, super handling but very unreliable, newer ones may be better let\s see, you are right about Porsche though I've had 3 macans all had to have new transfer boxes under warranty, a 991.2 with coolant issues, and my daughter's 718S is in Lovetts as we speak requiring a new turbo!! luckily all under warranty...
The Guardian gives its views.
Again, worth a read.
Regards, MrA
https://www.theguardian.com/business/2024/feb/20/nice-targets-but-scepticism-is-hard-to-shake-at-barclays
Uphill battle at Barclays, says Third Bridge
Barclays (BARC) needs to cut staff by 20% in order to reach its ÂŁ2bn cost-saving target, as the bank fights an âuphill battleâ, says Third Bridge.
The Citywire Elite Companies AAA-rated bank announced plans to win over shareholders, including a cost-cutting drive that will save ÂŁ2bn by 2026, a management shake-up, and ÂŁ10bn of dividends and buybacks over the next three years.
Third Bridge analyst Max Georgiou said to achieve its ÂŁ2bn target, a â20% reduction in headcount is neededâ but this would not impact day-to-day operations.
âPrevious cost reduction programmes have not been executed effectively, in some part due to its political culture,â he said.
âA coherent strategy is needed for future success but is an uphill battle.â
Georgiou added that further compression in net interest margin, or the difference between the interest earned on loans and the interest paid to depositors, is expected as interest rates stabilise and pressure from competitors grow for deposits.
Shares in the bank rose 4.6%, or 7p, to 156p on the announcement of the cost cuts on Tuesday, but are still down nearly 10% over the past year.
https://citywire.com/wealth-manager/news/stock-talk-barclays-needs-to-cut-staff-by-20-says-third-bridge/a2436642
Anyone know the dividend dates /amounts? đđđ
I just couldnât resist MrWolf. Have a Good Weekend.
Evening One and All,
Now as the dust starts to settle, the views of Reuters following Tuesdays Annual Results.
As I have mentioned before Reuters are rarely wrong and I am struggling to disagree with their detailed summary here.
Definitely worth a read in my humble opinion.
Regards, MrA.
https://www.reuters.com/business/finance/barclays-maps-uncertain-route-simpler-stronger-future-2024-02-20/
Https://uk.finance.yahoo.com/news/barclays-must-face-u-shareholder-154520738.html
In past a few days, Morgan Stanley increased their price target for BARC from 235p to 255p. Morgan Stanley has always been on the optimistic side. Bank of America increased the target price from 160p to 170p. BoFA claims Barclay still has a tough problem to solve.
RNS news shows BARC started buy back yesterday. If price stays around 165p, BARC can buy back 606M ordinary shares for this round. For 3 years, they can reduce 3.64B shares and assume they issue 600M for employee incentive plan, net reduction of share counts will be ~ 3B shares. This will reduce the share counts to ~ 12B, TBV will increase to ~420p. They will make 42p to 50p a share after 2026. Dividend will also increase above 6% when they keep the total dividend amount constant.
Iâm out. The US is too hot at the moment and record highs there have spooked me. I fear a crash may be coming which will ripple across to the UK. . With these tech stocks going through the roof it feels a lot like the internet bubble all those years ago and we know that ended in tears.
Caution needed.
Makros, a lot of Friends have them and have had them for many years 650S, 570, 675, 765 and they are fairly robust unless you read too much internet. My close mates new Porsche 911 992 is full of shocking faults and its new. I won't warranty, I never do, check out V-engineering who will look after them.