Member Info for TheFarEnd

scb, you cannot conclusively say that the reason for the BARC and RBS rise since the banking sector results is due to their buyback announcements whatever the SP tells you. Although separate entities within the same sector, undeniably compared to LBG they have performed better in this short term. The longer term however indicates a certain closer performance, if you're making comparisons. Although I've never understood why, if one UK bank performs, the others should follow.

I wrote here last May that any major policy changes would have to wait until Charlie takes over and now that seems to be the consensus here, we'll just have to wait and see.
One thing for sure is that they can't sit on all this capital forever……. can they?

The whole buyback issue is with us yet again and predictively being led/questioned by comparatively new LSE members, which is after all the purpose of these BB's, notably -
Bumble 1968
hardup
Hollybean
BaffledbyZIRP
Brixton
southcoastbather
67Sam

Every time the subject of buybacks is raised on here by events or whoever, the same for and against opinions/arguments appear.
This time it's no different, predictively the opposition to buybacks are led again by Wids and john46 with the status quo defended by Lti.

Over time, this subject has taken quite a few pages of this BB and of course as usual whether you are for or against buybacks nothing that is said on here has no influence on the policy of the LBG.

My opinion is the same, in that Lloyds typically pay over £400 million, probably more in bonuses each year, that sum will have to be paid by shares in the company or cash, that means more shares or less profit. If you issue more shares and then implement a buyback there's no difference, well maybe some administration charges to manage the buybacks.
Paying in shares is unavoidable in some cases where you can retain the shares when the sharesave scheme ends (the clue is in the name).

I believe all these discussions prompted A1 to publish the buyback figures for clarity and our benefit.

No doubt this subject will continue for many more pages on this BB.
Just saying.

Bubble2021

Posts: 2,033
Price: 46.23
Strong Buy
RE: DowntrendToday 09:30
Darth do you hold any shares in Lloyds?
No answer from DT again as usual. I guess any answer will look bad .....
If he's holding Lloyds shares why would you be talking Lloyds down for the last year?
If he's not holding, you may think he wants a lower entry price, but that means after all the wrong calls so far, he's obviously missed out on the 100% recent rise.
Either way it doesn't do much for his credibility.
There's also a third answer but I'll hold onto that.... for now.
Enjoy your weekend.

88, must have been a malfunction, just after your post it briefly touched 47p on live prices, but like the blue screen of death it has now gone.:-)

You've got your 47p!

There were a lot of frustrated, impatient, annoyed and exasperated budding CEO's on here last night.
The conclusions -

Break it up.
Consolidation.
Announce a buyback program.
Give shareholders shares.
Increase the dividend.
Pay the withheld dividend.
It's being shorted.
Sack the directors.
Hang the directors.
It's the MM's.
Broker recommendations negative.
Broker recommendations positive.
I should be the boss.
We need a unicorn (my favourite).

Interestingly everyone seemed to indicate they would remain shareholders.
Lloyds showing positive on opening, GLA.

"Until the buyback is announced this will dilly dally imo"
Scb, The announcement of buybacks is no panacea for LBG imo.
Whatever the sum they put on buybacks it is a gradual process mopping up shares, due to various restrictions so as not to distort the market, (a percentage of traded shares)
Last time around the SP (if I remember correctly) didn't suddenly get re-rated, although it may be the catalyst for some movement, who knows?
There is much discussion about buybacks vs dividends and I guess the only difference is that with a dividend it's instant, whereas buybacks, you'll never notice, but it must be there.
Just saying.

Not much to see here, just posters quoting, guessing, fantasising and wishing future SP numbers, why?
I guess if you quote enough numbers it will give you a better chance of saying sometime in the future "I was correct"

The travel recovery has started, Britain's Heathrow Airport says.

https://reut.rs/3CAJkqh

That's regulation for you, they're practically running the banks already.
With this disclosure/leak, if any bank were planning branch closures surely it would only speed it up.
Not sure how the FCA could implement this, if it's true.

It's quiet here this morning.
Wids, I'm sure that doesn't mean all banks.
As I understand it, raising capital ratios could have the reverse effect, in that banks could reduce their lending to maintain these ratios.
My knowledge on banking regs is somewhat limited.

Theosus, indications from CB's have made it clear that any program of withdrawing asset purchases will be gradual and will be completed well before any interest rises.
To my knowledge they have only mentioned tapering which means a reduction, not elimination.
They do have some experience already with this when tapering and eventual elimination occurred during 2014.
Staffing shortages will be resolved as most things are, over time, it will be a gradual process.
As for JIT, people underestimate the resourcefulness of supplier's.
Classic example is the automotive sector, major OEM's have warehousing or production facilities near the assembly plants and only require a small flat back to ensure supply.
It's seems a small chip is causing more damage atm than HGV license holders.
There are always counter arguments.
Just saying.

Calling all doomsters, panic over, gold just dived to a 52 week low (1,678), what happened to the PM boom?
Vix low, Dollar recovered, even the pound is perking up. Seems equities are the way forward, plenty of mileage left, especially the financial sector,
Happy days.

Yeah, it's a sad state Wids, but the old fashioned juicer is getting harder to find. The reality is they can't survive on wet sales alone.
Most have ended up doing 'pub grub' and going under the guise of a restaurant.
We're lucky, in that we have five boozers and a local private club to choose from, all within walking distance, but not everyone could be classed as a 'local.'
Se La vie.

"Stopping the dividends being paid was unforgivable"...
I'll agree with that Theosus, but it's a lot easier to say that now. Looking back to when Covid appeared on the radar, nobody, that's nobody, knew how to deal with the unfolding situation.
To end up with most of the population being quarantined, the introduction of furlough and all the associated precautions it was at that time a prudent measure. Furthermore this action was not restricted to the UK, particularly galling for Lloyds holders.
As I said earlier economic clarity is hard to define.

Wids, I joined the local club a little while back, a good investment given the price of beer these days.:-))
There was talk by some about an investment club but I thought I can make bad decisions by myself. I don't need a team to do it for me.

"Personally I don't worry or overcare wot the share price is or the divi , i'm not losing" .
Brixton, that statement is called a paradox.

As for premium bonds I used to hold them when the maximum you could buy was £30k, with somewhat regular prizes but nothing spectacular. I sold them way back when the government changed the odds, probably around 2003-04 time. It proved to be a good decision.
I believe they have reduced the odds further since then, on more than one occasion, I doubt I'll be getting any more soon, each to his own though.

LTH know only too well Lloyds dividend history.
2008 a cancelled dividend after the meltdown, which wasn't resumed until 2015 followed by a 'special.'
Then a progressive dividend policy until 2019 where we were paid an interim but had the final snatched away.

And here go again 2020 and 0.57p is your current starter, followed by 2021 and a 0.67p interim.
Rinse and repeat until the next disaster whatever that will be.

Reading this BB there are many here who have held throughout like rabbits caught in the headlights.
The moral of this is, never be frightened to take a profit and probably more important, never be frightened to take a loss.

There is always "a certain amount of uncertainty," especially where business and investing is concerned.
Imo, by the time you believe that "clarity on the economic outlook" has been reached, not only is it the time to be wary, it's often too late.
Most thought the economy was on a roll leading up to the 2019 election.
Corbyn and his brand of socialism well and truly defeated, despite the doubters, a new year of opportunities awaited after leaving the EU and Lloyds SP heading north (c 65p).
Three months later, the Covid disaster struck, Lloyds SP c 28p.
That's economic clarity for you.

Batfasted, If you believe that a high volume equates to a high volatility, this has a certain amount of truth, however this is obviously connected with liquidity.
If Saga had more issued 'floating' shares than 100 million, (which in the scheme of things is not a big number) then they would be less volatile. The more shares a company has, the more difficult it is to affect the SP.
Apart from the c40 million shares which at the current time cannot be traded, there are many more private and probably 2ii who are holding for the longer term especially since the refinancing. This in my book reduces liquidity even further, the outcome is that it doesn't take many trades to create a swing in the SP…... result, more volatility which equals a higher Beta value.

Hope this makes sense as I'm still down the juicer, cheers.