The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
John077
My average is 0.18 plus associated costs.
Is today's drop due to Lloyds in future taking on extra debt on their balance sheet?
"Prospectus dated 17 June 2021 (the "Prospectus") relating to the £25,000,000,000 Euro Medium Term Note Programme of Lloyds Banking Group plc"
Historically, every time post G7 meeting the USD strengthens. This is due to the fact that they all believe in a strong dollar policy to adjust their imbalances. Additionally, Powell spinned off the idea of raising interest rates in 30 months time.
In my opinion they have induced a correction in the market.
The strength of the USD is temporary and the DXY should top out at 92.50 before heading lower towards 82.50.
Globally, none of the Govt' can repay the debt created in the last 24 months. You can only reduce the impact of the debt by higher inflation which could be induced by QE or by economic growth.
The global economy is in vicious cycle and you cannot:
- increase interest rates and kill off any anemic growth.
- reduce QE and kill off any excess money based inflation
- increase taxes but would have impact on the business sustainability
Globally, every country wants to devalue their currency which includes USA. However, like everything in life they all need something to devalue against which is USD.
LTI
"Putting in SB order at 29.95"
In my opinion for this order execution the pandemic situation needs to worsen a lot or atleast equal the peak.
IAG maybe flying 20% of its planes but it is till hovering around 50% of its peak price.
In the case of Lloyds the banking operations never ceased but the share price is below 70% of its recent time peaks.
I think Lloyds should reduce the floating stock through buy back rather than paying out dividends. This should translate into some realistic valuation of the Bank.
Lloyds has a beta of 1.55 which makes it very sensitive to the market sentiment.
How low will this go?
EU will implement Basel3 end of this month and than USA will follow.
What I understand is that naked shorts will be banned and CAR will be increased for all intermediaries.
In my opinion all the commodities valuations will be readjusted to more realistic prices. I strongly feel that majority of the commodities have been artificially under priced by short sales. Majority of these short sales have no physical commodity secured against it. Additionally, the pricing does not reflect the supply chain issues (mining) and the pent up demand in some sectors as a consequence of the pandemic.
To cover these shorts majority of the institutions might dump stocks across the board to fund the covering.
Majority of the banks including Lloyds have had a decent run in the last 12 months therefore they are prime targets for liquidation.
Apologies for posting it on this board.
There is lot of chat of re-rating of these shares HE1, HEMO, POW, IOF, Blu. Any opinion on these or anything similar?
I am in big red on Lloyds as I did not expect it to tank below 48.50 so was looking into alternatives.
https://uk.investing.com/news/stock-market-news/lloyds-annual-meeting-halted-by-shareholder-shouting-complaints-2378114
Lloyds Banking Group (LON:LLOY) had to temporarily adjourn its annual investor meeting on Thursday after a shareholder shouting complaints delayed the start and had to be removed from the meeting.
The complainant said he was concerned by one of Britain's biggest banking scandals, a historic fraud at the lender's HBOS branch in Reading which resulted in 6 people being jailed and more than 100 million pounds being paid out in compensation to victims.
Victim have complained about the speed of redress and the amounts they have received.
Falky
I initially tried forwarding the link but than ended up pasting the summary from the article. They are not my words or my english.
However, what the writer is referring to is that the 50 days moving average is at 44 pence and the 200 day moving average is at 39 pence.
The nearest resistance is at 49.43 on the upside.
There is lot of interest in lloyds because it is the only penny stock in FTSE 100.
below is a bit of summary
LLOYDS BANKING GROUP ORD 10 found using the EPIC (LON:LLOY) have now 19 analysts covering the company. The range between the high target price and low target price is between £.99 and £.56 with the average target price sitting at £.75. Given that the previous closing share price was at £.48 this is indicating there is a potential upside of 56.8%. The day 50 moving average is £.44 and the 200 day MA is £.39. The company has a market capitalisation of £34b.