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My hope is that as the share price rises to nearer book ie 58p, they start to throttle back on the share buy back and increase the cash dividend.

If the £2bn buyback had been paid as dividends then we would be seeing dividends of near 5p, a yield of over 10%.

Ultimately with interest rates rising and a mortgage book of £229bn, the returns for shareholders could end up being quite spectacular leading to a re rating of at least a pound a share.

I'll be back after the 23rd August latest for round 2

You can educate yourself here Gus ..... granted its taken longer than I expected but date for the award is 23 Aug latesthttps://www.theguardian.com/business/2021/jul/25/outrage-as-italy-faces-multimillion-pound-damages-to-uk-oil-firm

Rockhopper .... 2 words Gus .... Ombrina Mare ... 23rd August .. tick tock tick tock .. the purported psychic phenomenon of seeing, or otherwise becoming directly aware of, events in the future.

All will be revealed....

Precognition (from the Latin prae- 'before', and cognitio 'acquiring knowledge'), is the purported psychic phenomenon of seeing, or otherwise becoming directly aware of, events in the future.

I've got it ... precognition.......

Hey Gus ..... a...... genius? An oracle? A prophet ... go on . .... I give up!

So many words in the English language that depict the ability to see the future. But which one to choose???

Ha ha ha ha ... no I just promised not to return until my prophecy came true and I was proved right.

And here I am!

It's called total vindication .. I wonder how many listened to me and kept some profit?

Very satisfying.

:)

I think Falky messaged him a few times and told him to shove off?

Does anyone remember that poster of a few weeks back that said that this was going back to 3p and was a classic pump and dump and to get out whilst people had a profit?

Everyone told him to sling his hook and that he was talking rubbish ....... looks like he was spot on. Trying to remember how name. Anyone recall?

Foizu .. I think you'll find the warrants allow ordinary shareholders to exercise them and in doing so subscribe for 1 share at 9p for every 8 you hold between now and the end of 2023.

Spot on EG77. That’s exactly what would happen.

If the OM award is of the magnitude I anticipate ie £250m plus, then it’s going to be more like 50p.

Warrants are fantastic as they allow you to enjoy a hugely geared ride if the share price starts to fly and you have some.

I would imagine that Morgan Stanley absolutely love rate setting Thursdays.

They must have bought back millions of shares today from punters who don't seem to understand hat these rate rises are so small as to have little economic impact, but ensure millions of extra profit for Lloyds

Deausexmachina…. Congratulations on reducing one of the best and most amusing posts I have ever read on these boards. Had me laughing out loud uncontrollably.

As an aside, every day that passes brings us a little closer to D Day….

This has to be the most successful share buy back in history.

Every time the price rises, they scale back the purchases and for one reason or another the market soon offers up the shares at 25% below book.

This is shareholder value creation of extraordinary proportions.

I’m hoping that they chuck another £1bn at it come the end of July results.

My betting is that they are aware that the 'award' will have been made by this date and will be keen to bask in their collective glory.

The AGM could have been anytime but its just 3 weeks away.

OM is going to be announced in the next 3 weeks.

Much

Why oh why did we offload a project which with follow on opportunities could have transformed Harbour into the major league player at these kinds of prices.

Instead we are stuck focused on the UK being taxed into oblivion.

Just don’t see a future here in the current political environment where the government just helps itself to any decent profits.

I suspect the strategy is going to be to continue to buy back shares whilst they can acquire them at under book so sub 58p, after which they will scale back the share purchases.

If you look at how much the dividend this year has cost ie £1.4bn and the share buy back, Lloyds has distributed £3.4bn to shareholders.

If this were all to be distributed as a cash dividend, then that equates to a whopping 5p dividend and a yield of over 10%.

Either the price is going to rise and we’re going to end up with some serious cash dividends or it’s going to stay where it is and they are going to be able to continue to buy and cancel the shares at a discount to book.

With interest rates rising to 3% by mid 2023 and a £290bn mortgage book, this is looking like the bargain of the century.

If you recall, the reason the Regukatirs were worried about the HBOS merger was the share of the mortgage market the group would have but the interest rates fell to practically zero and we struggled.

If Nationwide can make £1.8bn from its £29bn book, how much is Lloyds going to make from one that is 10 times the size?

And let’s not forget that every day of delay results in the interest portion of the award growing larger and larger.

When you are talking about millions of pounds, the compounding effect can really grow the amount laid as anyone who claimed in PPI will know.

I continue to expect a big and quick payout in the basis that the details are kept private as Italy won’t want a precedent set with all the details laid bare in public for the next claimant to come along and utilise.

Very bullish article.

Worth mentioning that it doesn’t even touch on the fact that each 0.5% rise in base rates puts £350m on the bottom line at Lloyds so it’s going to be making an extra £1.5bn within 12 months without doing anything.
Add in its £290bn mortgage book predominantly made up of low fixed rates which are going to roll off from 2% and onto 4% and you can see the income growing another £5bn.
Yes it will take some losses in any recession but a world of higher interest rates and the fact that it is buying back it’s shares at a 21% discount to book makes this the steal of the century in my opinion. At the rate it is buying it’s going to have increased EPS by 6% just from the buy back.
Absolute screaming buy.