What are peoples views on Lloyds at current price. Over 50% below year's high, currently yielding 8.75% has problems with Scottish Widows and is in a highly competitive albeit one with a lot of inertia by account holders.

I have a view that even if they cut the dividend by say 50% they will still yield over 4.25% which is just below Barclays at 4.75% but still above what you will earn in the Building Society or Bank.

IMHO this does mean the shares are good value in the long term and should bounce if the dividend is held or reduced by 50% or less.

What do others think?

The Golfer

I am just dribbling in small amounts of cash monthly through Halifax Sharebuilder and at the moment averaging down paper losses. Like you, I hope that it will come good in the longer term.

Ash, before the upturn in LLoy starts it has to break that 20day m/a of the Bollinger Band in your charts. It is currently acting as a resistance I won't be too happy until I see it above that level. The other thing is that the stochastics you print looks oversold. That combination leads me to be wary.

However, having said all that the weekly chart on metastock looks bullish so there might be some upward movement there. Also, it's just about broken the down trend from the end of Nov. to today.

Barclays' chart looks exactly the same. I'm long on that but I haven't much confidence it will progress beyond 400.

Harvey

Hey Harvey

- With whats been happening to Lloyds & Barclays since your post - it makes what you say quite interesting!!!!!!!!!!!!

Still cheap. I am certain in the next few weeks, as the FTSE moves over 4000, the momentum is going to keep it rising. We are going to see rises mainly in the banking and insurance sector, and so these stocks still have a long way to go.