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What are the expectations for tomorrow? I'm hoping for profits over 35 million and hopefully a 20% uplift in share price. This is massively undervalued .
I was right that this will decline close to 30p before we get more updates. Tomorrow we will get more updates, I am leaning towards the re-rate camp here, I believe this stock will rise tomorrow. Gla
Could being the word lets hope it is in our favour this rerate & not to the downside
gla
Could be a hell of a re rate here tomorrow. Hold tight for lift off
We also need to consider that The Co-operative Bank had been considered a right off just a couple of years ago and now it's the target of a takeover.
Https://www.proactiveinvestors.co.uk/companies/news/1042744/osb-and-metro-bank-in-spotlight-after-virgin-takeover-1042744.html
A slow turn around not expecting fire works with results.
But with our main Man now holding 53% i'm sure he will turn this ship to calmer waters
gla we need it
Correct RG, however to point out that £1.10 per share then values the bank at the same it is now due to share dilution. So in terms of overall market cap, the bank is still worth the same now as it was then.
Maybe one day I will see an increase in my 'for free' shares valuation.
Tg
Banks like Lloyds can simply close a branch
Tg
'' already had several interest parties ffs!''
really? - you may find that a sell off of assets was a possibility, but the tied in expensive property leases is a different matter.
Tg
''Virgin Money has 91 branches btw''
what has the old northern rock branches got to do with Metro having expensive leases on their branches - and come to that the co-op branches ?
"Metro hasn't been in anyone's sights despite the loose change valuation"
Jeepers it just gets worse Metro's already had several interest parties ffs!
Metro Bank covers 80% of its leasehold property costs by effectively renting out space for security box income..some prime located branches are actually owned..
Longtimeinvestor
"
The business model , including being tied to property leases is expensive and isn't one that is appealing tor another bank"
Unless of course your paying £2.9b for Virgin Money as offered by Nationwide...Virgin Money has 91 branches btw, or the mergers with the Co-operative Bank and Coventry Building Society..The Co-operative Bank has 373 branches.
Unlike digital banks like Revolut which has been waiting more than two years to secure a banking licence, which would allow it to conduct more regulated activities, such as mortgage and credit card lending.
Sometimes you just gotta to see the bigger picture with the backdrop of alot of M&A activity going on.
I agree lti. I took remember predictions of a return to £6/share being imminent. Matlot anyone?
Metro are pursuing a contrarian strategy by being branch-led. There is always space for a contrarian approach for sure, just don't expect the herd who have rejected your business model to be knocking at your door with generous buy-out offers. The SP will improve only when profitability is proven and consistent. That can't happen overnight.
RG
Rg
''from memory - about 110p. That looks outrageously optimistic in hindsight''
I was on here a long time ago when in the ££'s ,warning against the nonsense posts suggesting that once the 'shorts' were out and stakeholders increased their holding then there would be a climb up to near peak prices again £40) .
The business model , including being tied to property leases is expensive and isn't one that is appealing tor another bank . The current valuation is equivalent to only a few weeks net profits of the likes of Lloyds, so buying the whole Metro hasn't been in anyone's sights despite the loose change valuation. Current shareholders will have to hope that profitability can be increased to such an extent that there can be progress from the current 35p level.
''Metro is a sitting duck while market cap is below £500m ''
Yes £240 million is below £500 million.
''metro a likely target now.''
why is that?
I hesitate to put my foot into an ongoing exchange of views between two posters, but I seem to recall that it was less than year ago Cyberdoggy was predicting the SP would stay static for the foreseeable at - from memory - about 110p. That looks outrageously optimistic in hindsight so maybe unfair to accuse them of always being negative. Just a thought.
RG
U.K. banking sector starts the consolidation process with nationwide scooping up virgin. Metro is a sitting duck while market cap is below £500m . Results next week will be the start of a big re rate which metro a likely target now.
And the biggest joker of them all responds quickly
Think Cyberpuppy is a distraught investor 550 posts all negative on one share BB Metro Bank bought back at the £40 mark only to see the share price dive to sub £1.....
As they say every dog has its day but not this puppy!
He'll be looking for a new home in the near future...Results on 13th March with plenty of M&A activity spicing up the bank sector..re: Nation wide and Virgin Money, The Co-operative Bank and Coventry Building Society...
Re rate!!!!!!!, seriously its not happening off the back of results next week, same rubbish posted every quarter about rerates for years now. The bank is valued as it was before dilution came on the agenda. So be honest with yourself about what's happened since!!!, outflows, potential collapse of the bank, job losses and cuts elsewhere. In what world does that mean rerate lol, the one where you wear a meta quest headset and nothing is real????? Absolutely laughable
I meant "shunned" ... but "shinned" is quite appropriate .... given what UK has done to itself these past 8 years.
"New £5k ISA announced in budget but only to invest in UK companies. " How many UK people have in excess of £20,000 annual ISA allowance another £5,000 to stuff in a UK ISA?
A small percentage of UK folk ... seems desperate and an admission that UK is being shinned by investors ... desperate post Brexit Britain.
What sort of financial result would you think underpins a re-rating? The recap is going to obscure underlying performance with c.£100m of one-off upside from the T2 haircut going through the P&L. For me you need to look at core franchise performance i.e. what balance of non-interest/low cost deposits have left the bank since half year given the hints dropped by management that quite a lot left in October? I reckon anything less than a net £1b would underpin a re-rate. Anything >£1.5b would look pretty bad. If they lost £1.5b yielding 1% replaced at 5.5% then its going to hit the P&L to the tune of £70m -more than offsetting the cost reduction . That would put the bank on a fairly rapid path back into buffers and further dilution at whatever the Chair and CEO think they can get away with. The alternative will be someone buying it, But would you want a business with a franchise in decline? I worry what new business they are now generating in current accounts- particularly business current accounts. If the opening hours weren't generating new business why did the CEO insist on keeping them for the last 4 years?