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I am waiting for 125p ish before nibbling a few more. IMO there is no need to rush to buy banks today. I also do not see them making a rapid ascent when things turn around (as sooner or later they probably will). But I could be wrong. I usually am :)
LWHL, hope you got a few more.
As usual hysteria gives way to some rational thinking and bargain hunters. I still maintain ~160 ish post results, if no big shockers
Sadly not! Do not have a feel for the markets right now, but would be happy if you are correct. Ideally would like around 170p, but the tranche I have, am happy to hold long term if needed. While my short/medium term outlook remains unchanged, so does my longer term outlook. I feel fairly comfortable in BARC at my current entry price.
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.
@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
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.
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.
@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.
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.