Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Looks like I am going to get 125p soon enough! I will not defend the banking sector, nor ignore BARC's own many transgressions over the years - and FWIW, I was against the bank bailouts back in 2008. Much to the horror of many business contacts and colleagues at that time. All of whom would have willingly proclaimed themselves to be capitalists. None appeared to see the disconnect on this front :) So, why do I currently hold any shares here, even if the current pot is a small one? Because I believe I will make a profit on them at some point, as I did when I had a bigger holding in the run up to 190-odd pence recently. Small tranche because it feels a lot more risky now. I can see a lot of banks going under in the next 12 months or so. Not enough cash to bail them all out. I do not see BARC being in that category. But time will tell and it is a gamble to an extent. Especially if the next 12 months or so pans out how I fear it may. The game is the game. Good luck trying to change it.
Barclays just stands out as one company that should be shut down by the regulators. They cant stay put of trouble and time after time shareholders are paying for the recklessness of those pretending to know what they are doing. This time around no bail outs for banks. Let them fail. The country will survive and may even recover. One thing for certain is that these institutions have learnt nothing from the past. And how on earth can the govt relax bonus rules given the cost to the country these banks have caused. As they say if you don't like clowns don't go to the circus. Stay away from this circus.
Hi Stewart,
Very good reply, and appreciate your honest answers.
What it needs is a much more flexible approach, pay more divi and reduce buybacks when higher rates or similar without risk are offered elsewhere and possibly reverse slightly when inflation and interest rates recede.
Know large banks can be slow to change direction but a more flexible policy would help.
@stewart81: Absolutely spot on. The board at barcs could not have worked any harder in eliminating all good reason to invest in their bank and the SP reflects that. The simple acts of retaining the 'Covid' dividend to be paid at a later date, cancelling the proven pointlessness of the share buy backs, and ensuring the over-issuance debacle hadn't happened, could have put £8bn in the pockets of shareholders and built confidence and trust and significantly raised the SP. But I lose count of the number of times I see Barcs at the top of the 'fallers' leaderboard - back there again this morning - and know full well, regardless of any stresses in the finance sector, that this is down to the Barclays board. Utterly depressing.
Us side closed at 283 yesterday
But opened today at 7 ish
Go figure
Badjob,
I’ve said for as long as I can remember that Barclays is one of the lowest rated banks because of the piddly dividend on offer. Given you can get 4.25% ( possibly more) in a cash ISA why would you chose to buy shares in Barclays instead for 5% dividends and the risk of the financials running into trouble. I’ve been watching Barclays for a while but until the dividend reaches at least 6.5% I’m not interested in investing and there I’ll be many like me.
Yes the NAV is about double the current share price but that’s not enough of a reason to invest as assets can end to being written down.
The Barclays board really need to start treating shareholders with a bit more consideration! I’m surprised an activist investor hasn’t taken a sizeable stake to force change as Barclays is a cash generating machine but the shareholder payouts just don’t cut the mustard.
...appear to be tanking again, with the mid-sized banks FRC, PACW et al seemingly being allowed to 'wither on the vine'. I don't think the global financial sector can begin to recover until calm and confidence is brought to bear on those banks.
again in the US, along with the sector
Spot on One Long Runner. Just didnt want Belgrano to think it was only a decreasing number.
Barc's market cap is now nearly 20% below NWG despite materially higher profitability. To my mind that is hard to justify and a gap that is likely to close over the remainder of this year assuming any more banana skins are avoided and the bank puts a little more priority into shareholder returns than previously. Hopefully it will have learnt a lesson from the dismal reception to its results and underwhelming shareholder payouts last time around. I don't think the board will be safe long term if they continue to preside over such a depressed valuation compared to peers.
@Zebbo - the problem is inflation its going to be difficult to get down with profiteering, you can see it now its gettiong baked in, whilst people have money now we are only at the start of this cycle, if doesnt come down monies will soon be spent and dry for your average house hold
By the time everyone agrees there is no banking problem (or its behind us) PIs & some IIs will gain confidence to jump back in. By that time the SP will have already risen strongly from the recent lows (following an 80/20 rule).
Financial reporters and programmes love a good story and are still latching on to the notion that the problem is systemic. You need to look through this crud and make the call. For me this has never been systemic, CS has been bad for years and US bank regulation has been rolled back somewhat by the trump administration enabling their regulators and banks to take their eyes off the ball......the list goes on
Net net, I see BARC as an opportunity, not saying there will be no further bumps in the road
Its all about risk Vs opportunity.
Razz,
At nowhere near the rate of buybacks and share schemes would happen regardless of buybacks.
@belgrano - Something to remember is Employee share schemes will be issued and these are added back to the amount in circulation.
@Belgrano - if Barcs has seen the bottom it will almost certainly return to that number again, i see the FTSE going down now over weeks\ months to low 7000 area minimum possible low 6000, as interest rate measures start to kick in, we have just made a new high in a world crisis and i only saw that as a move to suck lots of buyers into the market and get locked in, i said it a year ago on the POLY board as you might remember and Carmichael is right its a game and previous experience told me thats how they will play it. This is all imo but Banks for me are trade in and out on the swings now, FTSE 100 will continue to make bear rallies and drops, all news dependant now and if the war ends and peace comes soon it might save us but im not holding my breath (yet)
Another 14M shares removed from circulation today that were purchased yesterday. Doesnt sound much when you see that they have over 15,000 M in circulation. However when you see that since 16th Feb, 95M have already been removed from circulation its bound to start having a snowball effect before long.
Also nice to see they are producing sufficient income to be able to wipe out this stock while continuing to pay stock dividends.
For me this signals steady accumulation is in order.
Its a game, what would have happened if they didn’t raise? what would have happen if they raised it 0.50?, the same, wake up and smell the coffee and stop thinking it was this, it was that. it’s a script which has already been written.
See what tomorrow brings but looks like last few days gains are back imo. It doesn’t matter that system is different to US as we don’t have the balls to value as stand alone. Us takes a kick in and we just follow. I don’t blame companies for listing in US you may as well get the bigger valuation. Bank equity is thin and funds move fast and share holders are first to feel the pain!
GLEN (and similar) benefited from the disgraceful QE pump and lack of sensible interest rate policies that we are going to be paying for for many more years than we gained from it. Agree as to the point if you were referring to the 2015 commodities crash though. That was a golden opportunity not driven by central bank juice, as such. FWIW, I think commodity stocks are going to be even more desirable in the next few years; gold, silver, copper and uranium in particular, along with rare earth metals. Not because said commodities will significantly increase in value, but because our fiat currencies are going to continue to depreciate significantly. The latest CPI print is a case in point. And that is a doctored number anyway. Shadow Stats is worth a read, if you are so inclined. Too much debt, interest rates already putting the banking system in peril and inflation untamed. Nowhere for the BoE to go. High inflation for years and years, or a Depression. All IMO of course and I hope to be wrong. Good evening all.
@Clark - you can make a packet on these swings, or sit it out as you say, i need to be proactive with my trading these days as doing nothing is not an option now having learned from experience, this is more down to my mind set and trading style and risk appetite.
Im heavily into GOLD atm, i could be tempted back here but the price would have to be cheaper as im going defensive for a bit to see how this plays out, things will look a bit different in a few months....
Newdealz I understand what you're saying and I too think it could all go a lot lower, or maybe not hence the volatility. I'm a long term invester and opportunities like this don't come along very often. I'm averaging in positions in financials banks and life assurance and forgetting for a few years. I did the same a few years back when commodities got hit and you could pick the likes of GLEN for under £1. Don't get me wrong I've made plenty of bad purchases but diversification is an insurance
Everyone knows increases take about 6 month's to have an effect, we are now feeling the first increases so more pain to come. Central banks should have paused
i wouldnt get to excited, yes the SP looks cheap but it can go a lot lower, sentiment is negative towards banks atm, TA looks bearish as well, dont forget to take your profit because from what i see and hear we are in for a lengthy period of high volatility.
Big sell off in last 30 mins, I thought I bought some bargains the other day lol. I think BOE won't go more than 25bpts but who knows they've consistently made a mess of it. Maybe Kwasi K is on the board now
*tanks, not take!