Member Info for longtimeinvestor

JFCC
''No one gives a seconds thought to what percentage of a FTSE company they own when they buy shares ''

What has that got to do with making a statement of fact regarding a share buyback and cancellation increasing percentage ownership?

JFCC
''No one gives a seconds thought to what percentage of a FTSE company they own when they buy shares ''

What has that got to do with making a statement of fact regarding a share buyback an cancellation increase percentage ownership?

JFCC
''another aim of his is to reduce his bank balance since that also happens when you spend money on shares.''

My cash position of about 10% is maintained over a period, which means it increases with the increased value of my portfolio over the many years.
btw I receive by most peoples standards, a fortune in dividends each year which obviously helps in maintaining my 10% cash position.

ls
one of the things that an investor should look at is the policy of the company . In the case of Lloyds they currently have a policy of making returns by way of buybacks, meaning someone investing should know that their percentage ownership will increase with this policy. It is up to the investor if they wish to invest knowing the result from such a policy.

ls
''How many shareholders invest in stocks to gain a percentage ownership''

What a stupid question.

Most sensible shareholders over a period of time should aim to do so.
I may start a new investment with 20,000 shares and along the way purchase another 20,000 then another then another etc etc, thereby increasing my percentage ownership.

Dan
''I am very annoyed about it''

You have decided that you know precisely how they operate - it is up to you to act on what you believe to be the case rather than continually moan about it on this board - where does that get you?

Dan
''How the hell has this manager been allowed to return capital without making reference to it in their literature???? Is it fair to say I was duped??''

really ?- you would have expected the share price to be a lot nearer to zero after all these years.

67s
Every employee will have the opportunity to save for a 3 or 5 year period to purchase shares. There is zero commitment to do so, meaning that the number of new shares purchased is an unknown until the employee decides to purchase rather than keep their money.
Discount is given on the share price at the outset of the period, meaning at the time of purchase the market price could give a greater discount or virtually no discount at all.
If you look back from now 3 and 5 years for schemes finishing now then the option to purchase price would be about the same as the current market price.
Win some lose some from an employees point of view.

125 Mill re saye

60 million shares issued as part of remuneration rather than Lloyds paying cash

120 million shares issued for saye scheme . These are shares that Lloyds receive money for.

ST
''what a shock, i did tell you at the start of the buyback.''

SE
''I am not a Treasury/Bank Balance sheet guy so.... why do they do this??''

LS
''Lloyds keeps adding share's to the pot then they use the shareholders profits the buy the share's back and cancel them
No wonder the share price is going sideways''

JFCC
''How much more connected can they be?''

ff
"Why all those new shares? Do we need more?"

All of the above - absolutely clueless

missed ff

utl
''I have never understood why they don't just hold some I treasury for the savers scheme''

and the benefit is?
How many do they buy?

t64
''why they didn’t just hold onto the shares they bought back if they was always planning on doing this ?''

As I said Lloyds do not hold shares.
The purchase for cancellation and SAYE scheme for Lloyds are a separate matter.
The policy of another business may be to purchase shares and hold in treasury for future use regarding saye schemes , but of course the number of shares to be purchased by employees would be an unknown.
Another business may have a buyback and cancellation programme just to match new shares already issued under staff schemes.

'' I also thought the plan was to reduce the amount of shares in issue but doesn’t this counteract the buyback?''

The number of shares issued will depend upon how much employees have saved and want to use the money to purchase shares, and the number of shares others are entitled to as part of their remuneration.

The number of shares purchased and cancelled will depend on a decision by Lloyds on how much money they wish to return to shareholders by that method.
I am hoping that they will put in at least another £2 Billion when a decision is made in February. The number bought will depend on the share price.

t64
buyback and cancellation will increase a shareholders percentage ownership if retaining the same number of shares. In addition the per share metrics increase.
Staff are given the opportunity to purchase share via a saving scheme.
In addition some staff may have contracts where part of their remuneration is paid in shares rather than with cash.

t64
''part of the plan''

did you mean employee share save plans.
As I said Lloyds do not hold shares.
The purchase for cancellation and SAYE scheme for Lloyds are a separate matter.
The policy of another business may be to purchase shares and hold in treasury for future use regarding saye schemes , but of course the number of shares to be purchased by employees would be an unknown.
Another business may have a buyback and cancellation programme just to match new shares already issued under staff schemes.

t64
''part of the plan''

did you mean employee share save plans.
As I said Lloyds do not hold shares.
The purchase for cancellation and SAYE schem for Lloyds are a separate matter.
The policy of another business may be to purchase shares and hold in treasury for future use regarding saye schemes , but course the number of shares to be purchased by employees is an unknown.
Another business may have a buyback and cancellation programmes just to match new shares issued under staff schemes.

t64
Don't know what you are getting at.
Lloyds do not hold shares in treasury. The buyback programmes are purchase and cancellation.
The value to a shareholder has been stated at the time of announcement.

gb
''How come shareholders never see the benefit.''

Is it possible to SEE an increased percentage ownership for a shareholder?
The fact is that a shareholder should know that to be the case.