Member Info for MrAltruistic

… As share prices soar, banking giants finally get the green light to pay dividends again.

The Daily Mail gives a Case For and Case Against views as to whether UK Banking stocks should be purchased, more so as there title indicates, from a Dividend paying perspective.

https://www.thisismoney.co.uk/money/investing/article-9806433/Banking-giants-finally-green-light-pay-dividends-again.html

IG.com give their usual pre-results outlook for Barclays, Lloyds and Nat West. Worth a read.

https://www.ig.com/uk/news-and-trade-ideas/whats-the-outlook-for-uk-bank-share-prices-ahead-of-first-half-e-210721

Hence, I haven’t posted anything from the media on here for a fortnight or so. Never been to Looe, in Cornwall before. Thoroughly enjoyed it. A great base to visit other parts of the county. Anyway, back to business. I hope everyone is well? Old posters and New. Rather than post what has “come to pass” I will just scan the last 24 hours and share accordingly. Peculiar erratic movements since my last short term purchase, which I am still holding, at 176p. Clawing it’s way back to 167p today I see but still some way to go should they ever return back to the ‘electric fence’ of 190p. Here’s hoping for Market Approval to the results next Wednesday. I would expect/wager an announcement of a return of Capital previously set aside for future Bad Debts, a dividend of 1.6p and additional Buy Backs of circa 3p. Anything less and the market is likely to ‘kick’ the share price again as it has done for the last two reporting Quarters…

Good Luck All

A 2 minute read from proactive investors.

When using my iPad, the web address link does not always copy and paste because of the auto-blocker optical character recognition software running by LSE. If that is the case, just copy and paste my headline title into Google and that should do the trick.

https://www.proactiveinvestors.co.uk/companies/news/953991/barclays-revenue-recovery-not-reflected-in-consensus-says-credit-suisse-953991.html

A related piece to Barclays here from the Investors Chronicle… worth a read.

“Barclays [has] for a long time been a bit of a black sheep,” says Kirrage. “It didn’t have quite as a good balance sheet as [some other banks] and had doubled down on investment banking at just the wrong time. It had a European franchise that nobody really wanted but sold the goose that laid the golden egg with its iShares business sale to BlackRock. Barclays was trading at a valuation that reflected that. But suddenly people are looking at the benefits of having a diversified business model. And we’re having a bit of a mergers and acquisitions boom for the first time in many years which Barclays is benefiting from. It’s had to miss one year’s worth of dividends – as many banks have – which has been painful for shareholders. But it's now got some of the highest levels of capital it has had for decades. Also, banks tend to be oligopolies – four or five [tend to] control mortgages and current accounts in local markets and the barriers to entry are very high – it’s quite hard to recreate a bank. There are attractions to banks that people are overlooking. We don’t ignore the headwinds, but we like paying a very low price for something with a good looking balance sheet and decent dividend yield that we think will be around in five years.“

https://www.investorschronicle.co.uk/news/2021/07/01/the-value-of-a-consistent-approach/

The reason for todays rise?

“ In a speech to City bosses at the Mansion House, Sunak said: "I announced at budget that we'd review the bank surcharge. Our ongoing conversations have only reinforced my view that the combined tax rate on UK banking profits should not increase significantly from its current level."

https://www.lse.co.uk/news/sunak-says-banks-should-not-pay-much-more-tax-34dwexbh4aw7wg6.html

onelongrunner, thanks the reply. Sounds about right. Everyday is a school day?

Good Morning Rockonuk01,

Sorry to be so thick… what is a PM?

Anticipated thanks.

ONDON, June 30 (Reuters) - Britain' Barclays will move its staff from across Canary Wharf into its headquarters in the London financial district, the bank said on Wednesday.

The lender will move its corporate and investment bank from the nearby 5 North Colonnade building into its main headquarters building, it said.

The move is part of a long-term review of its real estate footprint, Barclays added. (Reporting By Lawrence White; Editing by Dhara Ranasinghe)

https://finance.yahoo.com/news/barclays-moves-investment-bank-london-074713949.html

Here’s the link: https://www.ig.com/uk/news-and-trade-ideas/will-barclays-shares-mount-a-recovery-after-cost-cutting-campaig-210630

A decent update here on recent cost cutting events at Barclays. No indicative share price movement of direction though.

Summary:

How is Barclays trying to improve its outlook?

Barclays has clearly been pushing to make cost efficiencies in some areas while committing to targeted expansion in others. These are efforts that come on the back of some unforeseen major expenses for the company, such as the £48 million that the FCA forced Barclays to pay back to customers on 18 June who were mis-sold timeshare loans in Malta.

Many of the cuts undertaken by Barclays in recent weeks concern its services. For example, on 22 June the company axed current account discounts for all 17 million of its customers, citing a poor uptake of the service.

Meanwhile, Barclays also announced on the morning of 30 June that it would be moving its staff from its corporate and investment bank office into its main headquarters in an apparent cost-cutting exercise and a long-term review of its real estate footprint due to an increase of home working due to Covid-19.

On the flipside, Barclays is making moves to strengthen its investment banking arm with new staff, having just poached Burcu Korkut, former head of emerging markets at Credit Suisse, to head up the EMEA macro sales division. Although much of Barclays' future fortunes will be tied to factors such as interest rates and credit card demand, could these lower-level moves succeed in making the company leaner and more resilient?

A little piece here explaining this mornings jump and a view to future price movements.

https://www.investingcube.com/barclays-share-price-spikes-on-higher-dividend-payouts-hopes-shares/

This is a medium length read from this Tuesday 22nd June 2021, from an American perspective with American terminology, as it refers mainly to Barclays dual listed stock on the New York Stock Exchange of BCS - currently priced at $9.89.

However, by definition there is a crossover and in my opinion lots of relative points made. In relation to the summary, I have translated a couple of words and put them in brackets purely to aide with an easier understanding of what the author is trying to say.

Summary:

Final thoughts

I am buying the dip in Barclays. I think that Mr. Market has not yet internalized (absorbed the idea) that BCS is no longer in a restructuring mode, rather it is investing for growth. In my view, BCS is already sustainably earning its cost of capital yet trades at a massive discount to book. It is well-capitalized and generates a lot of capital that should be returned to shareholders in the form of dividends and buybacks in upcoming quarters.
The bears are overly focused on near-term perceived headwinds whilst not giving management credit for the turnaround in the investment bank as well as factoring in any growth opportunities such as unsecured credit and payments.
I see an upside of 50 percent and higher if we indeed transition (move) to a higher inflationary environment.
BCS is now a conviction buy for me in the European banking space and I am upgrading my rating to "very bullish".

https://seekingalpha.com/article/4435975-barclays-buying-the-dip-at-40-percent-discount-to-book?utm_source=investing.com&utm_medium=referral

Pantherax, no problem. Please continue to keep posting. As previously advised I will post what I can find, good, bad or ugly… the views of the authors may/may not necessarily agree with mine.

Good Luck my Friend.

D'oh! I forgot to post the link to this piece. Note to self... less haste more speed.

https://www.economywatch.com/news/barclays-share-price-down-6-in-june-time-to-buy-barclays-shares

Sigma1, we could all do with some momentum up to the results.

Good luck with your purchase my friend.

Despite the title, Barclays get's more than a fair mention here. Well worth a 2 minute read. Some reassuring points made IMHO:

"UBS's Jason Napier reiterated his ‘buy’ recommendations for Barclays and Virgin Money UK as well as Lloyds after arguing that UK domestic banks are well placed as the economy recovers."

Please MYOC and Good Luck All

https://www.ii.co.uk/analysis-commentary/lloyds-and-other-uk-banks-investors-should-be-buying-ii520631?utm_source=newsletter&utm_medium=email&utm_campaign=NEW-DLY-ENGAGE-afternoon_round_up_230621&utm_content=newsletter&spMailingID=14042324&spUserID=MzU1MTA2OTEwNzY0S0&spJobID=1776097662&spReportId=MTc3NjA5NzY2MgS2

guessworx, as you rightly say, "but it's ok to differ'. However,whilst trying to be umbiased i am struggling to find any negative media at the moment in relation to Barclays and most of the other UK Banks. i think short term the price is heading back to 185p+ and then, fingers crossed, it may finally break and stay above 190p and then through 200p up towards 220p. The catalyst for upwards momentum being the potential return of Dividends following a PRA update in July and possible return of Capital put aside for future bad debts. The ome fly im the ointment may be the bank trying to control costs. if the two first points come to fruition, then as the old phrase goes "never return to a lit firework... it could just go boom!". All IMHO please MYOC and Good Luck All.

bald_eagle, you sure made me chuckle… well done! I am not here to promote or defend his views but just share his “speculative wisdom”. Time will tell if he was accurate or not.

His analogy with comparing the share price to hinges probably isn’t the best. I suspect what he was trying to say was that the share price has recently seized up, in the same way if you don’t open and close doors, this is what happens to hinges? Well, that’s how I read his words… but I could be wrong.

As for “…to gift traders some reasonable movement”, I believe this to be in the context that he/his software believes that the true direction of travel, near term, for this share price is actually upwards.

As for being an Analyst, I totally agree with you on that point, an Analyst he is not. Chartist, yes. Analyst, no.

Thanks for your posts and Good Luck My Friend.

Never come across “Economy Watch” before… but a positive, punch, piece (alliteration… ha, ha, ha… laughing at myself).

Still worth a read.

Summary:

“BARC stock outlook

The bank has a strong balance sheet and at the end of March, it had a tier 1 capital ratio of 14.6% which is higher than the 13-14% that the bank targets. The company’s payments business is also a long-term value driver. During the first quarter 2021 earnings call, Barclays said that “Taken as a whole, we believe our payments complex can generate an additional GBP900 million of income over the next three years.”

Overall, BARC shares look like a good buy at these prices. The strong momentum in the global economic activity bodes well for all banking shares including Barclays. However, investors should watch the evolving COVID-19 situation in the UK, which is Barclays’ biggest market.”

Good Luck All