stutes
21 Feb 2020
Time to ask if CEO needs to go? Fiat, I’m asking you to look at the specifics - share price, PPI provision starts at circa £3bn and finishes at £22bn the fallout from Reading .
PrefInvestor1
21 Feb 2020
LLOYDS is going to FLY Hi @Eadwig, Well yes it does look like the downward move might continue today, US futures are down right now. But were a lot worse earlier. I have had a look through my portfolio to identify candidates that I might want to cull if this does develop into a correction. Most obvious candidate is GLEN as commodities/miners usually get hammered in an economic downturn. That trend already apparent in commodity stocks today. Thought about setting a stop loss but I really dont like those, often make you sell when you dont expect too - Ill just keep an eye on it and if it moves into loss (below ~222) then Ill sell. Also cancelled my HSBA limit order, if things are going south then not at all sure I want to be owning that. Plenty of time to decide before XD next Thursday. LLOY down with a major thump today, whats that all about I wonder. Mind you the share price did fall back a lot even intraday yesterday. Feel sorry for those with large holdings there - must be dispiriting, to say the least. Just did my daily pref pricing exercise (dummy sells on all my holdings) and they were ALL up. A most re-assuring asset class in times of stress (well excepting events like March 2018 of course !). It being Friday I am (and was) expecting a down day - but selling in the US might be exaggerated today due to that. Off for a walk into Reading town centre now to get a bit of exercise. It’s about 3.5 miles and takes ~ 1 hour 15 minutes to walk. Nice day here and I’m looking forward to it. Markets will have to look after themselves. ATB Pref
frog_in_a_tree
21 Feb 2020
Time to ask if CEO needs to go? How do critics like Stutes know that LLOY might not have been worse off without Osario’s leadership? The ship was holed by rip- off PPI theft well before he was appointed to clear up the mess. Stutes may well have been one of the LLOY shareholders lapping up divis delived through the PPI scandal? For now the sp is going nowhere but there is once again a decent stream of dividends. Frog in a tree
jackdawsson
21 Feb 2020
Time to ask if CEO needs to go? stutes: The current share price is below the price when CEO joined - time for the directors to be held to account for the strategy and lack of value added. Hi @stutes, If using that criteria then nearly every banking CEO should go. Some well before others. What exactly will a new CEO will achieve in the current economic climate? Look at BARC & RBS. Their changes in CEO achieved sweet FA as much of UK’s financial sector has been vulnerable to too many macro-factor uncertainties since at least June 2016’s EU Referendum. That’ll continue for the foreseeable future. So a change in CEO seems highly unlikely to make much difference. - GL.
Eadwig
21 Feb 2020
Time to ask if CEO needs to go? I think I heard he has been there 9 years now too, and good governance guidelines tend to set CEOs and directors at a max. of 10 years these days. I’m sure there will be repeted questions about his tenure over the next year if I’m right about that 9 year figure. Especially if LLOY’s performance doesn’t improve.
stutes
21 Feb 2020
Time to ask if CEO needs to go? If you look at PPI provisioning, Reading , share price the Board and in particular the CEO in my opinion, should go. The current share price is below the price when CEO joined - time for the directors to be held to account for the strategy and lack of value added.
soi
21 Feb 2020
LLOYDS is going to FLY PHILKES: O dear SOI. Just hit 58p. Oh Dear Philkes. It is now struggling at 55.5 ish. Every short in profit. soi
Eadwig
21 Feb 2020
LLOYDS is going to FLY PrefInvestor1: Hi @Eadwig, Well if it is the long awaited correction it’s getting started slowly, US indices bounced back and even the NASDAQ ended up only 0.6% down. But the economic effects of the virus will likely be long lasting. That said staying heavily in cash is not my style… @PrefInvestor1 There will be more results tomorrow and more uncertain forward guidance, and again over the next few days and weeks. Goldman made a prediction, published in the FT a couple of days ago, that this process could/was likely to start the correction (I didn’t actually read it). The other view, an answer given each day by the ‘markets guest’ on BBC biz radio news every morning is that investors have confidence in central banks to coordinate actions to offset any affect from the virus fall out. Given that the global economy was already in slowdown mode, I’m not so sure. I’m trying to be patient and not buying stock for the longer term on immediate drops as I’m sure better opportunities will be on the way. There was some pretty panicky news with regards to the Chinese economy and the spread of the virus elsewhere printed yesterday which may have contributed to the fall initially. It is certainly something to keep in mind. Many have been predicting a correction for a long time and this virus scare has come out of left field and injected uncertainty which, as we know, the markets dislike more than anything else. Every day there is another company finding that they have supply chain problems that were unexpected because they buy components from x country where the virus is not yet a problem, but then it transpires the supplier is reliant on closed Chinese factories for some sub-components. Some are believed to already be relying on th last deliveries that were already at sea before the virus outbreak with no certain date as to the next delivery. Another aspect to consider is that many service companies will probably not be affected so directly and especially not until the virus becomes rampant in their own country, or that of their main customers. IF that happens. Time will tell.
PrefInvestor1
20 Feb 2020
LLOYDS is going to FLY Eadwig: US results and forward guidance with coronavirus in the mix appears to be the cause of it. This was always on the way this results season, as I posted here and elsewhere. So I know you’re ready with cash to snap up bargains. Hi @Eadwig, Well if it is the long awaited correction it’s getting started slowly, US indices bounced back and even the NASDAQ ended up only 0.6% down. But the economic effects of the virus will likely be long lasting. That said staying heavily in cash is not my style… ATB Pref
J_Westlock
20 Feb 2020
LLOYDS is going to FLY trader_jack: May I ask a stupid question? Using your rable and STS as the example am I correct in assuming that the abbual cost of holding STS (their charges?) amount to 0.02percent pa and with a dividend payable of 3.02 percent pa per share then I would actually be earning 3 percent pa per share against 0.7 with ATST? Apologies that line in my table was wrong. For STS, the yield is now 2.93% and the cost is 0.92% ie. year to March 2019 they paid 6.25p per share… and yes your broker will separately collect the 0.92% costs from you. I’ll recheck all the entries in that tab later.
Eadwig
20 Feb 2020
LLOYDS is going to FLY trader_jack: I am starting to think that a takeaway from her local Chinese in Essex might just be better value for my money! You could work on that chicken and rice… chicken and cashew nuts and rice, chicken and pineapple and rice … both of which I do in a mean stir fry. Try and expand it from there. Sounds like your French restaurant jaunt wont go much appreciated, I’m afraid. But hey, I live in Poland a lot of the time where they still think McDonalds is pretty sophisticted. You should count your blessings.
frog_in_a_tree
20 Feb 2020
LLOYDS is going to FLY Am in France at the moment. Enjoyed a very pleasant apéros evening hier soir. Cheers, Frog in a tree
trader_jack
20 Feb 2020
LLOYDS is going to FLY frog_in_a_tree: Good to hear you are undertaking an expedition to the Somme with your grandson. Hopefully he will develop the same love of France that you have. Well, as I have said before he wants to learn and seems genuinely interested. He doesn’t yet know and I won’t be telling him before we arrive in Albert but I am looking forward to escagots de bourgogne for dinner most evenings. The hotel menu suggests that they will be served!!! Enjoy your evening Best regards TJ
trader_jack
20 Feb 2020
LLOYDS is going to FLY Eadwig: Then she puts so much fresh garlic in some of her cooking that the strength of smell actually gives me a headache. Hi again Eadwig, Look on the bright side the garlic wards off Dracula and I guess werewolves as well… I have been unable to get my granddaughter to try much, yes I have cooked for her. All my grandchildren prefer my mac cheese to that of their parents. I am still trying (unsuccessfully) to get my grandchildren to eat what I call a traditional mac cheese with tomatoes and cheese grated on top before it is put under thre grill to brown off. No luck but my youngest grandson now won’t touch mac cheese unless he gets plenty of fresh basil to go with it. I took my granddaughter to what sounded like quite a nice French restaurant off Kensington High Street a couple of years ago, we had been to watch Swan Lake at the Albert Hall. We never got to actually try the food, she decided she didn’t like anything on the menu. I tried so hard to explain “goujons des poissons†were simply a posh way of saying fish fingers but she wouldn’t have it. I could smell the warm real French baguettes and I was starting to dribble. We finished up at a Chinese retaurant in Gerard Street so she could have her chicken & rice… I have offered to take her to my favourite hotel/restaurant in France, near Arras if she gets good GCSE results but told her that she would have to forget her likes and dislikes and just go for it when the price of a meal is over £100 per head before any drinks are added. I told her that we would have the “Menu de Surprise†as the Maitre d referred to it on my very first visit. “What would that be?†I asked in my very shaky French. " Monsieur, if I told you that it would no longer be a surprise." I am starting to think that a takeaway from her local Chinese in Essex might just be better value for my money! Best regards TJ
trader_jack
20 Feb 2020
LLOYDS is going to FLY J_Westlock: Further, for TJ… I wasn’t sure if he meant earlier that he ONLY puts money into ATST… I assume he didn’t mean that… but if he did… there are other better yielding and certainly more performant funds in this sector on a total return basis and it would well be worth considering that… unless other factors are in play like particularly liking what ATST invests in. Hi again JW Thanks for that, very interesting. I was a customer of Alliance Trust for many many years and much of my own savings went into ATST. So when I started savings for my grandchildren I put all the money I saved for them into ATST. When Elliot Brothers came to an agreement with Alliance Trust to buy the whole of their stake it rather spooked me and I cleared my grandchildren out of ATST and into other stocks such as HSBA, LLOY, NG and VIN. Most of the savings are now back into ATST but some of my grandchildren still have HSBA, LLOY & VIN. I sold out of NG a couple of weeks ago at 1015p and put the funds back into ATST at 864p, I should have waited a bit longer I think, but hey, they dipped as low as about 750p in 2018 but with dividends reinvested the price I sold them at gave them a reasonable capital gain. Of course I realise that there are other investment trusts out there that I could put them into instead. I may well have a look around at some stage but ATST has been a reasonable run of the mill stock for them. Of the ones you listed Monks and 3i priced at over £10 per share - I think of as “expensive†SMT possibly quite high now around the 650p mark, Mid Wynd I have never followed but will run my rule over that in the coming days, the same with STS but it looks a reasonable divi payer at first glance trading around NAV whereas ATST is at a near 5 percent discount. I do look at quite a few IT’s over the course of the year and will probably put my 20/21 ISA allowance straight into BNKR which I have followed for some time. I owned some shares in it a couple of years ago but sold them to buy a new car just over a year ago. In hindsight there were other IT’s I hold that I could have sold instead which haven’t put on the almost 25 percent in the last year that BNKR have. When I first put money into it’s many years ago I looked at Personal Assets Trust but decided that the actual cost per share would get me fewer shares than ATST would buy. If I recall anywhere near correctly ATST back then were about £14 per share and I want to say that PNL were priced not much different to todays price although I never really followed them ATST underwent a 10 for 1 split in 2006 having reached about about £34.50 per share! May I ask a stupid question? Using your rable and STS as the example am I correct in assuming that the abbual cost of holding STS (their charges?) amount to 0.02percent pa and with a dividend payable of 3.02 percent pa per share then I would actually be earning 3 percent pa per share against 0.7 with ATST? Best regards and good night TJ
