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2Daman,
I don't have a clue what Horta will do on Wednesday, but I think a combo buyback/dividend would satisfy most people (including me)
Remember though that before Covid struck Lloyds was in the middle of a buyback and of course the sp was @ 60p
lti,
Yes I have addressed this below. See response to 2Daman
lti,
''The last buyback saw as little as about 3.5 million shares purchased in a day, up to about
26 million shares purchased in a day.
26 million shares at the current levels would be a spend of about £10 million''
Yeah so whats your point?
2Daman,
Typically Pension and other dividend funds have a variety of investments with a variety of returns, US Federal Bonds and/or Municipal bonds alongside Mining, Banking, REITs etc. So they are unlikely to shed a holding just because its dividend dipped for a year or 2 during a global crises.
I have just found out that Lloyds cancel the shares they buyback which is a good thing for shareholders because (for example), if they were to invest 1 Billion on a buyback they would purchase approx 3 billion shares which would then not receive any dividend and so the remaining shares (57 billion) would profit from that as the dividend would be shared out to a smaller pool.
Rosewall,
My statements are factual and not subject to the vagaries of Lloyds. I've made no predictions and am simply trying to inform others of the realities of buyback programs.
2Daman,
A buyback is a fiscally responsible strategy for a company especially in a time of uncertainty as opposed to a dividend.
Once paid a dividend is lost wheres any shares bought back can be resold further down the line, most probably at a profit, should the company need cash for some reason at a later date.
Share buybacks always enhances shareholder value due to the rise in the price of the sp, especially in the case of a stock like Lloyds that is majority held by dividend hungry pension funds and conservative mutual funds. Their shares do not go into the market place so the shares that are removed back into the coffers of the company are the liquid shares. Reduce their number and the price will inevitably rise.
lti,
Lloyds 90 day average volume is 217 million so there is plenty of space to acquire the shares for a buyback quite quickly at 20% per day. Though they will probably buy on the dips like everyone else, if they even go that route.
theredbaron,
Just curious but why would you bet £2000 in the hopes of making £250?
TG pitching the stock today. Will probably have no effect:
https://www.telegraph.co.uk/investing/funds/stronger-pound-rising-market-stocks-funds-buy-now-have-brexit/
cookoo12620,
''so why are the others obeying the eussr and waiting then poindexter , belgium is pi##ed ,germany are miffed''
Ok so its not an order, therefore they are not obeying. Belgium is delighted because it their joint vaccine. and Germany, well I spoke with my friend Andrea earlier, who is a German Neurosurgeon, and she was fine with us taking the vaccine early.
LTI,
''which EU member is ignoring the EMA?''
No members are ignoring the EMA, they had recommended that members wait but there is no obligation to do so. |Its not an order!
TFI,
The European commission had recommended that member states wait for approval from the European Medicines Agency (EMA) before authorising the vaccine, which is expected to arrive later in December. But despite the claims of some ministers that Brexit played a role in the UK’s ability to quickly approve the vaccine, this isn’t true: under EU law, national agencies in Europe are permitted to use emergency procedures allowing them to domestically distribute a vaccine for temporary use. The MHRA, which is considered the world leader in the regulation of medicines and vaccines, confirmed this.
TheFarEnd,
I would be surprised if there are many sub 25p investors whose portfolio was completely bought at that price, though it is equally certain that many long term investors also purchased those sub 25p shares, after all it wasn't at that price for very long.
mrchouhdry,
It really depends on what was your original reason for buying this stock, was it short term profits or future (possible) dividends or even as an addition to your portfolio? Did you buy enough that the 4.5 p rise in price is a significant enough sum that you can pay for the cost of the trades and any tax due on profits so at to make the sell rewarding?
lti,
Perhaps I'm not reading that correctly, but it looks like they are retiring the 2 tranches of debt and consolidating it into a new tier 2 debt at a reduced return and an extended maturity, in other words It looks like they are buying back some of their debt.
No?
It looks like they are buying back some of their debt.
longtimeinvestor,
I did not say that Lloyds would pay a 10% dividend, what I said was that were Motbuch to receive 3p per share dividend then his ROI (return on investment) would be, in effect, 10% because he bought the shares at 30p each.
Motbuck,
Remember that for your shares that you bought at around 30p that receive a 3p dividend will be returning 10% per annun plus a probable 100% increase in the value of the underlying stock, which is a very good return. Regardless of the eventual value of the SP your ROI will still be 10%.
Did you look at the thread of that Tweet? A whole mess of rabid Right Wing comments and claims, so I am going to ignore this as just more nonsense.
Lets face it there is no way anyone could find out so fast that the CEO had dumped his stock and also doing so immediately after a positive announcement is highly illegal and would come out eventually leading to punitive fines and prison.
And 16% gain is peanuts.