Member Info for eccles04

He's right, where else can one get a 5% safe yield?

Yes suits me fine. I bought at 268 a few weeks ago because I could hardly believe the yield at that time on such a quality stock. Even now it is still a dam good yield - impossible to get such a return in the usual places for savers cash. Think I will buy a few more if SP gets close to 300.

Trouble is, what to do with the cash if you sell? Personally, I am staying put for the divi which is bound to be better than anything I can get with cash except perhaps for a new car which I don't presently need.

65

Would not touch a so called financial advisor with a barge pole. Anyone can get that o-level qualification in about 18 months but folk who don't know, believe them to be real professionals, it's a scandal. Now after you have done 4- 5 years of study, passed 10 papers and had maybe 6-7 years of experience then you are a professional - like qualified accountants and actuaries.

Perhaps you intended to type 350p? However, that would be rather too late. Any way , 300 is probably nearer the mark, think I will grab a few more on Monday.

Yes Tricky, I am vaguely familiar with Trumpmumble but far more familiar with the bonkers behaviour of many stock market investors: Why does a trumpism cause a nose dive yesterday and a buy back this morning? There is no logic involved only emotion which is no way to make a business decision.

The last 24hours behaviour proves the "madness" of our stock market. Yesterday drops to a close of 270.7 and within an hour or so this morning back up to 273, all for no apparent reason.

Correct, just because some nutter gets shot will have no effect upon Lloyds performance what so ever. Better to pay attention to what MS are saying.

"Well positioned" eh, I hear an estate agent talking; what exactly doe that mean? For investors it ought to mean able to produce more profit and cash but is that really true in this particular case? I suspect so but for only one reason - the end of PPI refunds. After that they, like all banks will have to hope for a general up turn in the economy and the housing market OR a novel way of producing more income which is infinitely better than the PPI scandal. Maybe selling something highly commercial in their branches?

Let's be clear, it is essential that a successful enterprise produces cash. Anyone who told you differently does not understand business. What you do with that cash requires wisdom and there have been plenty of failures over the years where someone has put cash (capital) into a business which they do not have a decent business plan for. So spending cash on buy backs and dividends are often a good strategy in uncertain times.

My logic says buy backs mean: 1. Plenty of cash 2. Dividend yeild likely to improve. What is the logical outcome for the SP?

Something told me that it was too cheap last week but didn't move fast enough to get in at 274, never mind.

Yes, Tricky, sometimes the market is completely bonkers,have seen it many times over the years that I have been a financial professional. E.g. not so long ago the FTSE 100 index fell down to around 4000. In 2008/2009 to be precise. Now there was no logical reason why this should happen; the majority of the companies involved would carry on making money and paying dividends and within a year it had climbed back up to close to what it is now - madness eh?