Member Info for Gate13Boy

“What the fx that, party day ?”

No, if you follow the thread, Primetime51 asked when the next UK inflation figures were out and that was my answer.

Aug 14th

Yes livestock but other macro economics are dragging the price down. Can’t you get that ?

Have you looked up Chemring Group’s rise yesterday yet ?

Correct LTI.

The saying “there are none so blind as those that cannot see” springs to mind. It seems some posters are incapable of looking at the macro picture and instead myopically blame buybacks.

Livestock, I don’t know how many times you need to be told that the current plight of Lloyds share price is nothing to do with buybacks.

Tell me why Chemring rose by 7 1/2% yesterday.

Yes good day for UBS to fill their boots with buybacks.

*took 🙄

Look good to me 👍👍👍

Looks that way 88. Asian markets too fright overnight at the Fitch US re-rating.

4th thread on the same subject now.

1 x £100

1 x £50

2 x £25

= £200

Probably 👍 S&P downgraded the US earlier in the year.

Hopefully not 🤞

To AA+ not AA.

3 threads about the same subject now.

Chemring announced a £50m buyback this morning. Their shares are up 7 1/2% today just on the back of that announcement. Proof if it were ever necessary that buybacks work and are effective. Why a share stands still or declines (that is conducting a buy back) has done so for other reasons.

I think Questor’s *hold* position has it just about spot on. To have an increasing share price you need increasing profits and increasing growth. The BoE is going to put the economy into recession to quell inflation. That in turn will result in increased impairments and delinquencies. The housing market is already in decline which is a large share of Lloyds business. Excess profits, unless there is a change of strategy, at Lloyds will be used to prop up the share price through buybacks.

Enjoy the good dividend yield but don’t expect the share price to gallop north is the immediate future IMHO.

LTI

“It appears that there are a lot of people on here that have comprehension issues due to age/intelligence.”

😂 Well said. Done to the back teeth explaining the merits of buybacks to those who seemingly can’t get their head round the logic and how they work.

“ Four years ago, Lloyds’ shares were trading about 50p versus 45p today. Dividends were higher at 3.37p per share in 2019, compared with 2.78p expected this year. If it were not for the big dividends, then investors would have bolted long ago.

The prospect of a recession or slow economic growth means Lloyds’ investors will have no choice but focus on dividends

So, what now? Investors need to give up on the idea they will make capital gains in the current environment. The shares trade on one-time tangible net assets – in a bull market for equities that is likely to be the floor, but it could also be the ceiling for Lloyds’ valuation heading into a potential recession.

That the bank’s impairment charge for potential bad loans in the second quarter hit £419m versus £200m a year earlier suggests Lloyds is preparing for a tougher future. The figure was a shock given analysts had forecast £371m for the quarter. Higher interest rates put more pressure on consumers and businesses and the consequences are still playing out.

The prospect of a recession or slow economic growth means that Lloyds’ investors will have no choice but to focus on dividends, forecast to grow to 3.12p in 2024 and 3.52p in 2025. The latter implies a 7.8 yield on the current share price. Put simply, Lloyds is paying investors to await better times.”

I must have bought this at the right time last summer as am 13% up currently. I own some of the constituent shares (Burberry, Sage, RELX, Experian and Fevertree) but am slightly worried that Diageo and Heineken may bring this down slightly in terms of NAV. Good companies but maybe alcohol is losing its sheen slightly. We shall see……

BLB,

You could always just sell your shares…….