Member Info for longtimeinvestor

Some at about 70.3p

Bb

'' It's what I was taught at school.''

that was a long time again - things change - that is now not correct

Bb

'' I'll call it what I like.''

why would you want to call a country by a name that is incorrect

BB

''the Ukraine ''

Ukraine

Equity = assets minus liabilities

Icl

''Capitalisation is an illusion''

What?

Market capitalisation is the value that the market places on HSBC, which equals the share price multiplied by the number of shares in issue - simple

BT continued with an upward move

HSBC back to reaching all time high market cap levels

MARS continuing to slowly creep up

VOD continuing a bounce

LLOY reached another 5 year high but way below an all time market cap high.

Current market valuation is about £162 Billion

At point in In 2001 the share price was a bit more than the current share price -

The market valuation of HSBC at that time was about £110 Billion

In 2001 the share was reached a bit more than the current share price -

The market valuation of HSBC at that time was about £110 Billion

Easy

''Buybacks lift sp''

only if the market doesn't decrease the valuation of the bank.

Recently as far as the share price goes, we have benefited from not only a reduction in share capital for a number of years, the market has placed a higher valuation on HSBC. Market cap is now at an all time high

JIM

You are all over the place

Fromage

20 Feb 2025 14:58

''indeed, no benefit''

Jim

24 Feb 2025 13:12

''Have to agree with fromage.''

24 Feb 2025 19:34

''Don’t agree that advertised and significant BBs don’t impact share price and hence market cap''

???

LTI

24 Feb 2025 15:27

''Based on the current market cap, without buybacks the price per share would have been a lot lower''.

try thinking.

The sole purpose of buybacks are to reduce share capital. (to reduce number of shares in issue).

The market values HSBC on a daily basis - currently over £160 Billion.

That valuation of over £160 Billion has NOTHING to do with the reduction in share capital.

'same'

time

NC

''we can never be 'sure' the divi isn't always going to be kept at 'around' four or five percent, no matter HOW many shares there ever are in issue.''

Also on this - how many more times?. Lloyds bank do not pay out a level of dividends from year to year based on differing share price levels. The market determines the valuation of Lloyds, which is reflected in the price per share.

It was not long ago that the Lloyds share price was at 40p, meaning as I said at the same, making the forward dividend yield about 8% and greater still in the years to come. So stop the continued nonsense about Lloyds keeping payments paying to keep the yield in the 4-5% range.

NC

the statement -

''"Not having to pay dividends on billions of net share cancellations from previous years is also a nice little bonus."

is correct. As I have said having fewer shares contributes towards increased dividend payments per share.

''where the gain is clear for all to see, the buybacks 'gain' to shareholders isn't. ''

the gain on the share price compared with what it would otherwise be, based on any given current market cap can easily be worked out. I have given these details on a number of occasions.

If the time comes when all returns are made by way of dividends, then the payments per share would be greater than if no buybacks had ever taken place. This greater amount would be the calculated difference based on the number of shares in issue at such a time and how many would have been in issue without buybacks

HSBC also conduct buybacks - they have a 50% payout ratio allocated to dividends.

Not really a 'saving' in dividend - more a question of returns from profits allocated to dividends would be available to fewer shares and thus a higher payment per share, on at least maintained profitability. This contributes towards the progressive dividend policy.

Hu

''early due to uncertainty''

Lloyds made extra unexpected provisions, at which point they stopped the buybacks.

As you say the car 'scam' scam will have an unknown/unexpected conclusion.

I would be surprised if the current buyback was suspended, especially as a further reduction in CET1 was planned for 2026.

NC

''Yes, it will be after the 'cost' of buying back a share paying around 5% is covered, in about twenty years time!''

why why why? - must be at least the 100th time.

Find yourself a brain.

It is a return to shareholders - it is as simple as that - not a business investment from Lloyds.

If Lloyds did make an acquisition, the return could well be 5% on expenditure.

BT continuing with recent rise

CNA reached a 52 week high

LLOY reached another 5 year share price high