New broker upgrade out this evening......

Lloyds Banking Group Financial Hold 67 55.75 20.2% NCB Stockbrokers(ESN)

They see a 20.2% discount on the stock to there SP target of 67p.

RSI, Have you had troubles all your life?

RSI,

Do you talk to the birds often?

They may help you.

PS, Why don't you use a spell checker.

Come on lads call it evens.

I would call it 4/6 vs 5/4...

A reverse of yesterday

On the UP 55.40p +0.20p though the market is down 25 points

but one can not be sure for how long, markets are very volatile

bought some more this morning..too good to miss at these levels?

tabasco

re - I would call it 4/6 vs 5/4...

you seem very familiar with the betting fraternity affairs

Sharp as a blade.

Lloyds Banking Group PLC
15 December 2009

Publication of Final Terms
The following Final Terms are available for viewing:
* Final Terms for LBG Capital No.1 plc's U.S.$1,258,631,000 8.00 per cent. Fixed
to Floating Rate Undated Enhanced Capital Notes (the "ECNs") issued pursuant to
the prospectus dated 1 December 2009 (the "Prospectus") in connection with the
GBP5,000,000,000 Enhanced Capital Note Programme of LBG Capital No.1 plc and LBG
Capital No.2 plc (the "Final Terms").

The Final Terms for the ECNs contain the final terms of the ECNs. The Final
Terms of the ECNs must be read in conjunction with the Prospectus, which
constitutes a base prospectus for the purposes of the Prospectus Directive
(Directive 2003/71/EC).

One of the few .....in the blue.

After consodilating on the positive territory is moving higher and higher this afternoon

Yesterday's but good to have it on the thread ..........

Lloyds investors focus on turnaround
Mon Dec 14, 2009 5:00pm GMT -- By Clara Ferreira-Marques

LONDON (Reuters) - Lloyds completed a record 13.5 billion pound rights issue on Monday, ending a turbulent period for the bank and shifting investor focus to a potential government stake sale in 2010.

The discounted cash call -- the world's largest to date -- is a key plank of a bumper capital raising effort worth over 23 billion pounds in total and aimed at helping Britain's largest retail bank avoid a state-backed scheme for bad debts.

Lloyds Banking Group said on Monday 95.3 percent of the new shares offered were taken up by investors including the government, which owns around 43 percent of the bank.

That left just over 600 million pounds of shares to be placed by the underwriters -- Bank of America Merrill Lynch, UBS and Citigroup -- far better than Lloyds's 4 billion pound sale in June, which left a unwanted shares amounting to 13.1 percent.

The rump was sold within hours at 55.5 pence per share, an 18.5 pence premium to the rights issue price. The sale will raise some 18.4 pence per share for investors who did not take up their rights, an average of 180 pounds each, the bank said.

A high take-up -- with the rump placed by 10 a.m. -- was the strongest indication yet of shareholder support for Lloyds's turnaround effort and of appetite for its shares.

"I take it as a good sign. Over 95 percent feels quite good to me," analyst Mike Trippitt at Oriel Securities said.

"This has drawn a line under the capital issue -- they have a solid capital position, a strong balance sheet. The spotlight now will be on the operating performance."

Lloyds shares closed down 1.9 percent at 55.2 pence in a relatively strong market, held back by the placing of outstanding shares.
The price had opened up over 3 percent, as investors were cheered by the take-up and by Abu Dhabi's $10 billion (6.1 billion pound) bailout for Dubai, where Lloyds is a creditor.

Analysts and investors said clarity on the bank's capital and a focus on its operational progress would also make it easier for the government -- which has bought into Lloyds at an average price of 122.6 pence per share -- to begin considering selling down its share as early as the start of next year.

"What we have seen today is there is appetite for the equity, so it would be smart for a variety of reasons for the government to begin to place a small amount of its stake in the first quarter of 2010," analyst Joe Dickerson at Execution said.

UK Financial Investments, which manages government stakes in nationalised or bailed-out banks, is expected to test appetite for its shares soon. But it is unclear whether a sale could come before a general election due by June -- particularly if shares remain well below the government's average purchase price.

The paper loss facing the British government contrasts sharply other countries. The U.S. government, which plans to begin selling the roughly $30 billion of Citigroup shares it owns as the bank raises $17 billion in stock to repay bailout funds, could see a profit of $13-$14 billion..

MOVING ON UP

Lloyds, which has 2.8 million small shareholders accounting for 7 percent of its equity before the rights issue, has faced anger over mistakes made during the crisis and a decision to buy embattled rival HBOS -- heightened by revelations that the Bank of England had secretly lent HBOS 25 billion pounds to keep it afloat at the height of the crunch.

Lloyds shareholders have seen their stock losing 76 percent of its value since January last year -- before the crisis and the takeover of HBOS a year later.

But investors voted overwhelmingly last month to back its capital-raising plan, which includes a debt exchange into so-called contingent capital, and totals over 23 billion pounds after an increase announced on Friday. The new bonds, dubbed "cocos," are designed to convert into equity if Lloyds's core Tier 1 capital ratio falls below 5 percent, shoring up its position if it hits rocky times.
(Editing by David Cowell)

From the iii.com articles

Lloyds poised to pay 100m in bonus tax
Allister Heath and David Hellier - 15.12.09 10:39

Lloyds Banking Group (LLOY), which yesterday successfully completed a record-breaking 13.5 billion rights issue, is preparing to pay out its bonus pool in full. The move, which follows mounting anger in the City over the government's super-tax, will see the firm having to hand over an estimated 100 million in payments to the Treasury as part of the 50% levy.

The payment of the bonuses, the bulk of which will be for amounts between 20,000 and 40,000, will surprise government ministers who expected most banks to rethink compensation policies in the light of the imposition of the bank bonus supertax in last week's pre-Budget report.

Lloyds' bonus pool is expected to reach between a quarter and a third of that of Royal Bank of Scotland (RBS). Only a very small number of its staff are in line for very large, 1 million-plus payouts.

But City AM has learnt that Lloyds, which is still 43%-owned by the government, is determined to bite the bullet and pay bonuses it feels its staff deserve even if that means taking a substantial hit.

Just as remarkably, most other banks in the City are now preparing to follow suit, according to sources that have been involved in discussions between the different institutions. This is especially likely to be the case at many US firms, which feel they cannot allow massive pay differences to arise between London and New York.

One of the main exceptions is likely to be RBS, which could reduce the amount it pays out as a result of the tax, partly because the government's stake in the firm is much higher than it is in Lloyds.

The government, which expected to raise around 550 million in total from the tax, is now likely to make far more than that, sources said yesterday. PricewaterhouseCoopers has already raised its estimate for the tax take to 2.5 billion.

But the news that it is set to cash in will be bittersweet to the Treasury, which has repeatedly said it wants financial institutions to pay staff less and retain more capital.

Lloyds' decision will be interpreted in the City as the latest sign that the bank is returning to rude health, having been brought low by its disastrous acquisition of HBOS.

Chief executive Eric Daniels, whose reputation in the City was at a low ebb last year, is increasingly being seen as one of the surprise winners from the credit crunch.

Many of those close to Lloyds now expect UKFI, the institution which holds the Lloyds shares on behalf of the government, to offload a significant portion of its shareholding in the first few months of 2010. The exact timing will depend on market conditions.

They argue that the government will be keen to show it has made a return on its investment before the election and consider a profitable exit price to be anything over 64p a share, compared to yesterday's closing price of 55p. Some banking analysts have a target price of 100p for the Lloyds share price, which, if correct, could see the government selling shares at a healthy profit.

Lloyds' estimates of the level at which a reprivatisation would be profitable is drastically different to what was being discussed just a few months ago.

In June this year, UKFI calculated that its break-even exit price was 122.6p per Lloyds share. But following implementation of Project Seaview - the nickname given by Lloyds insiders to yesterday's fundraising and exit from the asset protection scheme - and UKFI's take up of its rights, the government's break-even exit price will be reduced to 73.5p, Lloyds believes. This falls to 64p once all other payments are included.

The bank calculates the government has so far spent 20.3 billion on it. From that it subtracts the 144 million fees paid to the government for the underwriting of the rights issue, as well as the 2.5 billion break fee from the asset protection scheme, leaving a net outlay by the Treasury of 17.6 billion. This sum would be recouped if the government sells all of its shares at just 64p.

Banking sources believe that the government may use an unusual method to reprivatise all or part of Lloyds -?largely because the market would be unable to cope with huge numbers of shares put on sale all at once.

One option would be to access the convertible market through an equity-linked security with a debt component (either government debt or Lloyds debt) and a call option or warrant over UKFI's ordinary shares.

Alistair Darling was said last night to be adamant that he will not soften the 50% tax on bonuses, even as a growing number of banks and brokers threaten to move offshore.

to buy at 37 or not?
just cant see this going lower.(or maybe i can) i actually think i can, still cant bring mysellf to buy at 56sh
just watching
regards
jkd

Yep this is interesting from that article re- analysts......

Many of those close to Lloyds now expect UKFI, the institution which holds the Lloyds shares on behalf of the government, to offload a significant portion of its shareholding in the first few months of 2010. The exact timing will depend on market conditions.


They argue that the government will be keen to show it has made a return on its investment before the election and consider a profitable exit price to be anything over 64p a share, compared to yesterday's closing price of 55p. Some banking analysts have a target price of 100p for the Lloyds share price, which, if correct, could see the government selling shares at a healthy profit.


Lloyds' estimates of the level at which a reprivatisation would be profitable is drastically different to what was being discussed just a few months ago.


In June this year, UKFI calculated that its break-even exit price was 122.6p per Lloyds share. But following implementation of Project Seaview - the nickname given by Lloyds insiders to yesterday's fundraising and exit from the asset protection scheme - and UKFI's take up of its rights, the government's break-even exit price will be reduced to 73.5p, Lloyds believes. This falls to 64p once all other payments are included.

A good clean up of preference Shares yesterday ..........

16 December 2009 -- Repurchase and Cancellation of Preference Shares
As described in its previous announcement on 11 December 2009, Lloyds Banking
Group plc ("Lloyds Banking Group") has now settled the exchanges described
below. On 15 December 2009, Lloyds Banking Group repurchased for cancellation
(i) 301,900 preference shares (representing U.S.$301,900,000 in liquidation
preference) of its U.S.$750,000,000 6.413 per cent. Non-Cumulative Fixed to
Floating Rate Preference Shares (ISIN: GB00B3KSBH82) leaving 448,100 preference
shares (representing U.S.$448,100,000 in liquidation preference) outstanding;
(ii) 178,922 preference shares (representing U.S.$178,922,000 in liquidation
preference) of its U.S.$750,000,000 5.92 per cent. Non-Cumulative Fixed to
Floating Rate Preference Shares (ISIN: GB00B3KSBJ07) leaving 571,078 preference
shares (representing U.S.$571,078,000 in liquidation preference) outstanding;
(iii) 221,292 preference shares (representing U.S.$221,292,000 in liquidation
preference) of its U.S.$750,000,000 6.657 per cent. Non-Cumulative Fixed to
Floating Rate Preference Shares (ISIN: GB00B3KSBK12) leaving 528,708 preference
shares (representing U.S.$528,708,000 in liquidation preference) outstanding;
and (iv) 356,648 preference shares (representing U.S.$356,648,000 in liquidation
preference) of its U.S.$1,000,000,000 6.267 per cent. Non-Cumulative Fixed to
Floating Rate Preference Shares (ISIN: XS0460002693) leaving 643,352 preference
shares (representing U.S.$643,352,000 in liquidation preference) outstanding.

If is good for the housing market is good for Lloyds...........


The UK house building sector is now cheap having already discounted another dip in house prices next year, and share prices could therefore rise by around a third as the market recognises this, Citigroup has said.

According to the broker, the sector has been affected by what it called a 'disproportionate double dip discount', with shares having fallen 20% in the last three months on fears of an expected downturn in house prices in 2010.

But Citi analyst Aynsley Lammin has argued that underlying fundamentals have continued to improve in recent months, with house prices recovering some 8% from their April low, meaning the sector could withstand some deflation in prices next year anyway without having to mark down their assets once again.

Lammin added: 'Underlying fundamentals have continued to improve, as seen in house prices, mortgage applications, housing transactions and consumer confidence.'

Lammin said the whole sector was essentially cheap at current levels, adding that there could be 'scope for at least 30% upside, if not more, as the market re-rates the sector.'

good post Goldfinger - ty

RSI

What is happening to LLOY?

Seems to be heading down again.