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It was about 70b shares. Lloy was purposely flooded with shares at that time, HMG owned about 40% or 28b shares in return for the £20b or so they put into lloy. Problem for lloy shareholders was that £20b capital injection was later paid out as ppi to the thieving b'stards who reckoned they were misslold ppi - HA Ha Ha.... Result was 28b extra shares but not a penny piece in capital. The problem with lloy sp won't be solved until thosec28b sharescare bought back, which will take a few years yet....
Asp1 - A very basic comparison that does not include divi yield, IMO those still suggesting Lloy is 'the worst share ever' or a 'dire share' seriously need to examine their concept of investing.
LLOY certainly isn't the worst share ever but it is certainly a dire share. Time you revised your conclusion me thinks.....
No Opinion
RE: Divi's n Buybacks6 May 2023 19:10
''how Lloy got into the situation of having such a huge amount of shares on the books -
new shares for hmg taking stake in Lloyds
Hmg paid in £20b to recapitalise loy and in return got a 40% shareholding - 28b shares I think? What happened to that £20b? It got paid out as ppi.... but no shares were cancelled to reflect it...
Hi again suff. Actually the sp has increased from 45.19 on 6/4/22 to 52.62 on 28/2/23. But the fishy bit is why has it has fallen after the buy back was announced - 46.85 a few days ago, 48.15 cop today. Its almost as though the market is conspiring with lloy to drive the sp down to allow lloy to buy back at lower prices?
Does anyone think there is something fishy about how the lloy sp has reacted to the share buybacks? I mean, if a new buyer entered the market, buying let's say 20 to 30 million shares every day on average, don't you think the sp should rise? And to add to this fishy smell there seems to be no shortage of sellers despite us being told the sp is cheap as chips?? All very strange!
Hoping that there is sufficient excess capital in February for the same amount to be purchased.
Last year the total distributed was £3.4b. Profits should be higher this year so I would reckon on ~£4b available for buyback and divi
flec
''I don't believe the current buyback is having any effect on the share price. ''
Anybody notice that lloy block listed another 585m shares yesterday for the 2021 deferred bonus plan...? The sp will never make headway while that sort of thing is happening and it makes the buyback seem a waste of time....
LTI,
I am comparing the alternative use of £1b. It would take 14 years before the additional eps equals the divi. That does not have any bearing on whether lloy is a good or bad investment...
Hi LTI,
I have no problem with profits being reinvested in the business as long as the additional profits generated exceed the company's cost of capital. What I am saying is that on the evidence provided, buying back shares doesn't look attractive to me....
Extract from 2018 published annual accounts, page 49.
"Share buyback
During 2018, the Group completed a £1 billion share buyback programme with an average price paid of 63.4 pence per share. Through a reduction in the weighted average number of ordinary shares in issue, share buybacks have the effect of increasing earnings per share ........ The 2018 share buyback had the effect of increasing the earnings per share by 0.1pps......"
£1b paid as a divi would have been worth 1.4pps.....
Buybacks sound like a really good idea.... not...
''History says buybacks of Lloyds shares has zero effect''
I think you will find that they have the affect of reducing the share count
Yep, it does until lloy issue more bonus shares.....