George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
GB
Agree. Not a bad return. Also share is rock bottom, so likely future capital gain. Plenty of shares paying this or worse that are top heavy with likely CG loss. That does not include usa that is a nutcase with its inflated share prices. Very painful for those who bought high, however, buybacks should raise share price eventually as long as the bank maintains profits.
LLOY are not expecting a bill for anything yet for car finance. The BOD may make an allowance, however, it is also possible this thing will fizzle out. Even if it becomes problematic, with any luck, this BOD has some cojones and will not let it be a lay down misere like PIP.
I would love to see a consolidation as I trade a lot of lloy options. Because of the low share price, the brokerage is relatively astronomical. 1.40 GBP per contract (1000 shares) costing me about 10k GBP a year in brokerage. I have no issue with buybacks, however, all bonuses should be adjusted to accountfor the effect of buybacks. That is, they only get a reward for real improvement, not just because of reduced number of shares. Likewise, they should not be trumpeting a progressive dividend unless it is a real increase, not because of reduced share numbers. A reward when a reward is due is fair not by fiddling the numbers.
Hi LTI, Is there any cost difference between placing a bet and buying a CFD. I am in OZ and only have access to cfd and shares in my Interactive brokers account. Fortunately, once my super fund is in pension mode there is zero tax on all profits within the fund.
ĹTI, I usually buy deep in the money calls that move almost penny for penny. If the proverbial hits the fan downside is limited and upside same as share. Just roll-over if near expiry or exercise. I have done very well with this strategy on lloy and Oz banks over the years. Whenever there is an over reaction like the present time, calls are ideal. I also sell calls against shares when toppy. When the bottom dropped out during covid there was almost no premium on 16 calls with 12 month expiry date (or 14C, can't remember),that moved back up in tandem with the shares. Sold some and exercised the balance. Each to their own, I guess. Don't like to buy out of the money options as that tends to be a losing play. Keeping an eye on call premiums may also be a useful marker of market direction. If the mm's are selling calls cheaply, the market tends to keep going down. Do your own research, just MHO.
nice opportunity to load up on in the money calls. have done so with lloy april 24 36 calls. in situations like the present it limits downside risk and provides an excellent delta on the upside. surprised nobody discusses this trading strategy, maybe you are all too busy ****ging off at one another.
Strike123
I guess it really comes down to the price of the buyback. The HBR example is clearly a train wreck. This is why I stay well clear of highly inflated US Tech shares. I feel confident that the LLOY share price will be (eventually) well above the current levels. Whether the cash goes out in dividends or buybacks it is still 2 billion. My biggest beef with buybacks is they should not be used to make it easier for the board to reach various bonuses. If there is a 5% buyback, then there target price should increase by 5% also. Furthermore the progressive dividend should be really progressive and not just a result of the reduced number of shares. I think a number of us might be happier if they could actually see some tangible benefit.
I agree that it is a bit of a pain in the proverbial, not seeing an increase in the dividend, particularly for those dependent on a reasonable revenue stream. That said, I do agree with LTI that it is sensible for the BOD to buy back shares when they are below book value. I suspect that this is likely to be the policy of the board for the next 2-3 years at which point there should be a substantial reduction in the number of shares that should be reflected in substantial increase in ongoing dividends. For those of you who genuinely think that the buybacks are never going to lift the share price there are other tactics to improve cash flow. This is my opinion only and you must do your own research, but, for example, one could sell a Dec 2024 52 Call and receive a premium of about 6.35 pence of a Dec 2024 56 Call for about 5 pence. This provides an income stream equivalent to a bit more than the present dividend twice over. You also continue to receive the usual LLOY if or until someone exercises the call and you have to sell your shares to them at the contracted price. With such long dated calls, I suspect that the share price + dividend at the time would need to be a fair bit above the contract price (at least in the first year) before they were exercised. But hey, what are you worried about, after all this suggestion is for those who think that this is a dog of a share destined to languish in the 40's (or at least below 52p). Because of the low price of LLOY shares/options, the brokerage is a bit steep (one reason that I would like to see a share consolidation. Once again DYOR.