Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
No I don't think it will have that much impact. Don't forget you have to earn it in the first place in order to pay tax. So whilst I don't agree with the cut you're still better off to be earning the divi, and paying a percentage of those earnings in tax than not earning it in the first place. Some might take that stance for moral reasons but they would be cutting their nose off to spite their face as holding your money in case is a loss leader.
Make sure you make use of your ISA allowances in order to reduce any potential tax from capital increases plus dividends paid on shares held in an ISA.
I shared the below with a younger relative of mine who was asking me some questions. So I did this comparison to say that this is sometimes what investors look at when doing research.
Price to Book Value (Net Asset Value)
Bank of America - 1.147 (14.7% over it's asset value)
Citigroup - 0.52 (Shares trading at a 48% Discount)
JP Morgan - 1.605 (60.5% over it's asset value)
Lloyds - 0.76 (Shares trading at a 24% Discount)
Barclays - 0.45 (Shares trading at a 55% Discount)
Natwest - 0.85 (Shares trading at a 15% Discount)
HSBC - 0.77 (Shares trading at 23% Discount)
Price to book value is a valuation ratio that is measured by stock price / book value per share. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown.
Price to Earnings Ratio
Bank of America P/E - 13.11
CitiGroup - 6.67
JP Morgan - 11.79
Lloyds - 8.5
Barclays - 5.29
Natwest - 10.78
HSBC - 11.73
A low price to earnings ratio indicate that the share price is cheap. The average on the FTSE is 14. Investors looking for a bargain would normally look for a share price where the price to earnings ratio is lower than 15. The finance sector as a whole is cheap with Barclays looking especially cheap.
I think your comment is more of a political one. I'm commenting on the financial strength and competence of British Banks and I believe when compared to their peers (other banks) like European banks then I'd rather have my money invested in British ones. British Banks are undervalued in my view especially when compared to some American Banks despite the differing business models. Barclays is probably more directly comparable to American Banks like JP Morgan and when you look at things like Net Asset Value and Price to Earnings Ratio then British Bank Shares are cheap. I will post separately a comparison I did as some might find it interesting.
I'm not so concerned about the politics as I am about getting a return on my investment :)
SUFCESSEX
There's lots of different traders - I've been in for a long time and intend to stay as I do believe British Banks are hugely undervalued and whilst it always seems to be one thing after another they have been big unprecedented events which can't be predicted.
I think we've got a positive future. It's obviously frustrating for shareholders who are down. I know the feeling but as I've no plans to access the cash and I'm here for the long time the fact that the shares have been cheap have enabled me to reduce my overall average which has been a positive for me personally.
Good luck with your investments.
Unfortunately it looks like there's a new poster who's been around for years but never posted until recently; has decided to use this new found freedom to attack other posters on the board adding little value to otherwise interested investors. I would never mention names and what would be the point. It will be back under another name next week.
I do find it amusing that the board gets spammed with abuse by certain handles for a period of time and then they disappear. But the language and style of abuse inevitably means they get caught out again. Whatever floats their boat I guess haha.
I've put another £10k in this morning. I'm loving the share buyback which will increase the EPS which should have a positive impact to the share price. After enjoying being briefly in profit I'm down on paper this morning by 5.33%.
However I've also reduced my average price to 52.9p. I'm feeling very positive about these results. Like others I would have liked to have seen a better dividend but what we got was what was expected and I'm happy with the huge share buyback that was announced.
Full Year Profit - £7 Billion (down on last year as a result of litigation and conduct charges of £1.6 Billion)
Final Dividend 5p - Bringing the full year dividend to 7.25p
Additional £500 Million share buyback to commence (Bringing full year share buyback to £1 Billion)
Net Asset Value per share has increased to £2.95 (Shares still trading at a discount)
I'm the closest I've been for a long time in breaking even. I seem to be watching my own glass ceiling today. My average price is 53.7866 - and it's not quite got there. If it breaks that today I'll be finishing work at 4pm and might have a glass of prosecco to celebrate.
Deutsche Bank has just raised HSBA to Buy (from hold) and increased the target price from £6.50 to £7.60.
This follows broker rating increases last week from Jefferies who raised to Buy with a target price of £7.70 and Bank of America raising their target price to £7.20.
There's still value here for people who are thinking of jumping on board.
This keeps pushing towards £3 but not quite getting there just as Lloyds keeps pushing 50p. I think both will pass before the week is out but who will be first and will it happen today.....
January 23rd 2009 Barclays closed at 47.3p but intraday traded as low as 43p.
They also traded at 43p intraday on the 21st of January 2009 but closed above 60p.
Apart from those two days they traded as low as 50.81p on March 9th 2009 but closed 56.72p.
10 days later they were over a pound.
Thanks both. I think it's worth a punt for a small amount. Helps me to diversify my portfolio too as I've been too heavily invested in one sector. So I've been using some of my dividends to spread my risk around. Anyway, I've just bought 5771 shares. If it goes lower in the next few months I can always add to it. Long term I'm sure this will bounce back well.
This share is looking cheap to me so I'm thinking of buying in using some profits from elsewhere. Just wondering how others are currently feeling about this share. And the dividend yield looks quite high after the recent drop in the share price - are we expecting the dividend to be cut?
I'm not asking for advice - just interested in peoples views. I'm thinking of putting just over £5k in.