Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Lloyds Bank Share Price Hits Taxpayer Break-Even Level

Recommended Posts

http://www.bbc.co.uk/news/business-22564682

Lloyds Banking Group's share price passed 61.2p in morning trading, the break-even point for the government's investment in the group.

British taxpayers own 39% of Lloyds after the government pumped £20.5bn ($31.4bn) into the debt-laden bank in 2009.

Above this level, taxpayers would be in profit if the government began selling off chunks of its holding.

Shares in Lloyds, the UK's largest retail bank, have risen 125% in a year.

Investor sentiment has improved following chief executive Antonio Horta-Osorio's announcement that the bank would probably return to profitability in 2013.

The word probably....

Time for the Govt to bailout whilst the going it good? Or would that trigger a collapse in confidence?

Share this post


Link to post
Share on other sites

They've never released info on their exposure to the multi-trillions in the derivatives market. Nor opened the ledgers for the 'public'.

Pump and dump.

Edited by cashinmattress

Share this post


Link to post
Share on other sites

And all it took was debasing the currency 50% since the bailouts! Rejoice!

Yes, it's like a classic car enthusiast who says:

My Porsche 944 has been a great investment, I sold it for a few hundred more than I bought it for three years ago. All I've had to do is replace the rotting sills, brakes and suspesion and rebuild the engine.

Share this post


Link to post
Share on other sites

Yes, it's like a classic car enthusiast who says:

My Porsche 944 has been a great investment, I sold it for a few hundred more than I bought it for three years ago. All I've had to do is replace the rotting sills, brakes and suspesion and rebuild the engine.

:lol:

The public will never cotton on though. Printing money to devalue their purchasing power by inflating the value of Lloyds Balance sheet is too much for about 99% of voters to comprehend. We got our investment back, shame a billion today just isnt worth the same as a billion back then. Does upset me how this theft is portrayed by the media as some kind of success. Lloyds 2007 board should be behind bars, Brown should be behind bars, Darling, maybe we'll let him go, after a thorough investigation.

Share this post


Link to post
Share on other sites

:lol:

The public will never cotton on though. Printing money to devalue their purchasing power by inflating the value of Lloyds Balance sheet is too much for about 99% of voters to comprehend. We got our investment back, shame a billion today just isnt worth the same as a billion back then. Does upset me how this theft is portrayed by the media as some kind of success. Lloyds 2007 board should be behind bars, Brown should be behind bars, Darling, maybe we'll let him go, after a thorough investigation.

Yup, pretty sad state of affairs all round.

Share this post


Link to post
Share on other sites

http://www.bbc.co.uk/news/business-22564682

The word probably....

Time for the Govt to bailout whilst the going it good? Or would that trigger a collapse in confidence?

Last time I sold Lloyds shares it was at 104p (having bought them for a lot less). That worked 'cos I was a small enough shareholder to sell without flooding the market and collapsing the price. Also 'cos 2008/9 was a unique time when the nimble investor could run rings around the big fund managers, as many were forced by their own rules into making bad trades.

You can't just do that if you're a big shareholder. It's one reason the stockmarket has special rules for anyone holding more than (from memory) 3% of any listed company.

Share this post


Link to post
Share on other sites

I've been trading Lloyds in the range 48-56 in my SIPP and have done quite well, though missed the recent leg up.

I have to say this current rise looks a bit like an indirect manipulation by the Government who have been talking the economy up.

My suspicion is that at 62p Lloyds is overvalued - it is still fundamentally insolvent if the true price of housing is considered, and yes I can see a huge share dump coming at a convenient price. I think the UK economic hype is overdone, if anything things seem to be worsening on the ground again.

Share this post


Link to post
Share on other sites

I've been trading Lloyds in the range 48-56 in my SIPP and have done quite well, though missed the recent leg up.

I have to say this current rise looks a bit like an indirect manipulation by the Government who have been talking the economy up.

My suspicion is that at 62p Lloyds is overvalued - it is still fundamentally insolvent if the true price of housing is considered, and yes I can see a huge share dump coming at a convenient price. I think the UK economic hype is overdone, if anything things seem to be worsening on the ground again.

By true price do you mean the price you think they should be? I hold the opposite view to you. I see large rises in the share price over the next year. Especially when the CEO has his bonus linked to the price this year.

Share this post


Link to post
Share on other sites

And all it took was debasing the currency 50% since the bailouts! Rejoice!

Genius. Oil imports, grain imports now 50% more expensive.

Edited by pl1

Share this post


Link to post
Share on other sites
n

By true price do you mean the price you think they should be? I hold the opposite view to you. I see large rises in the share price over the next year. Especially when the CEO has his bonus linked to the price this year.

I think my concern with Lloyds is that 80% of the shares are not currently tradeable, and the company is also entirely subject to the whim of the UK economy.

There may be some totems that will boost it, but I am getting nervous of a Government orchestrated pump and dump. I'd be less concerned if Gordon Brown were still in, as naturally he'd have offloaded the shares at 27p.

I do agree that once it is recapitalised and the economy is back then it will be a good deal at today's prices. But rather than buy and hold for 5-10 years, I think you'll make more buying in dips and selling at peaks. I think the current move is a peak. There has been some better news on the UK that has driven this, but if we start to see Euro exit signs and the further decline in the Eurozone I don't see how it will hold up.

Edited by Mikhail Liebenstein

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.