Masterwhen I need any adviceI get in the car and drive to my neighbours houseas I doubt you will ever need any adviceyou can just stare at your neighbour over the fenceI quite like your Palestinian humourbut your advice I would not seek.

New broker note out today....

Lloyds Banking Group Financial Add 67.2 53.28 26.1% AlphaValue

broker sees 26.1% upside to 67.2p

I hold LLOY and I am bullish for the long term mainly when Interest rates move higher


>> Fred1new
I have no interest in your insights but I am very curious as to why you are on here?

>>tabasco
You could not live without banter mate, good luck with the caravan

>>Master RSI
keep up the good work and the cartoons coming

>> goldfinger
thanks for the info

>> comment from the Telegraph a few days ago
stimulus from Western governments is good for Lloyds says Philip Gibbs


Philip Gibbs: why I'm going in with Lloyds on its rights issue
Lloyds shareholders must decide soon whether to subscribe to the bank's rights issue. Top UK fund manager Philip Gibbs gives his view.

By Philip Gibbs, Jupiter Asset Management
Published: 12:31PM GMT 03 Dec 2009

Much has been made of the news that the Bank of England secretly bailed out HBOS and RBS at the height of last year's financial crisis with a loan of 61.6bn. It is understandably an emotive subject for many shareholders who question whether the Bank acted beyond its powers in keeping the funding secret at a time when Lloyds shareholders were being asked to vote in favour of the takeover of HBOS.

This revelation has broken at an unfortunate time for Lloyds, which is trying to garner support for its forthcoming rights issue. However, whatever the rights and wrongs of the actions of the Bank and the Chancellor, Lloyds shareholders must not let the debate cloud their judgement over the forthcoming rights issue. One must remain impartial and consider the capital raising purely from an investment perspective.

Goldman considers share saleIn my view, the investment case for the Lloyds rights issue or any other rights issue in the financial sector for that matter is pretty straightforward right now. I do not view my decision to participate as necessarily supporting companies but as an assessment of whether I would generally be happy to increase my holdings in financials right now in the light of what we think of the prospects for growth and for valuations. And after considering these factors, I am willing to participate.

Why? Well, it is pretty clear to me that despite the huge run up in the financials sector since the market lows of March, the banks look cheap. The constant requirement for capital has been holding them back but given the general recovery in asset prices in Britain, it may be that the banks' provisions for debt defaults will not be as bad as some fear.

I am more bullish on financials than most other areas of the stock market and my holdings in the sector are significant, even in funds I manage that do not have a requirement to invest in them.

If one wishes to invest in financials I think it is preferable to have global exposure to catch more growth in emerging markets and to spread risk.

It is easy to forget that the financials sector is very broad, with sub-sectors that can perform at different points in the economic cycle. For example, the insurance underwriting sector tends to be attractive in a bear market. On the other hand, I view the investment banks and asset managers as early cycle while property is a later-cycle game. Within the banks there are differences between retail and corporate banks investment banks are more leveraged towards growth than retail banks.

But there are no hard and fast rules for investing in financials as individual companies can go against the grain and geography is very important. In particular, right now, there are major differences in growth rates between China and India and the US and Britain.

However, this does not mean that one should simply buy financials in emerging markets as, while growth there is likely to be higher, their share prices are higher too. There may be some companies that are situated in Western markets that are benefiting from emerging market growth, but it's not so much in the price. Investment banks are, therefore, currently well represented in my portfolios due to their ability to grow high-margin revenue streams and benefit from emerging market growth.

Make no mistake I am not particularly bullish about the Western economic environment long term, I just believe current valuations are extremely low. Furthermore, financials are benefiting from the extraordinary stimulus from Western governments, who are buying up bonds and implementing other measures to prevent a deflationary spiral taking hold. This stimulus is what is pushing up asset prices and while this money is flooding the system, I would expect financials to benefit.

So in my view, the momentum we have seen in markets will continue for the time being (albeit with some setbacks along the way) until there are some interest rate increases, or until governments do something that upsets the applecart. That is likely to occur when taxes are raised, or public spending is cut, coupled with the end of quantitative easing.

Unfortunately, at some stage interest rates will have to be increased, if the world recovers, and some governments will have to address their budget deficits. So there are some negative factors looming in the distance. But the question is: are they on the immediate horizon? I'm not sure that they are. I would imagine the flow into assets and out of cash will probably continue and financials should be a major asset class to benefit.


Philip Gibbs runs the 1.4bn Jupiter Financial Opportunities Fund, which has turned a 1,000 investment into 8,631 since its launch in June 1997. On December 14, Mr Gibbs will launch the Jupiter Absolute Return Fund.

">>tabasco
You could not live without banter mate, good luck with the caravan"

CieloI listen to what everyone has to saybut learn from only a few.btw the only thing I have ever towed is a football

Cielo,

I am interested in LLOY and will buy again for the long term at what I consider the right price.

I still expect the SP to drop further.

Also, I am interested in watching "rampers" in practice, either as individuals or as a pack.

One of the signs of a ramper is that when they have a contrary view presented they response is to abuse the messenger.

If you don't like what I write (often tongue in cheek) the squelch button is available.

PS. In spite of all the huffing and puffing the price seems down again to-day!

The banks certainly are not the flavour of the month,to say the least.
However,at current valuations they are pricing in no recovery at all.If it is as bad as that,everybody is in big trouble.

Do you call everything wrong on purpose Mr Tosser rsi or are you just the most unlucky person in the world ?

thanks for all the answers

Oi Fred spot on re : ramping ... that's the way the BPRG/MDX muppets have always behaved and still do.

Got out first thing here and Barclays.

Small loss was hoping the Aba dabi rebound would be on but lasted for 24 hours and that was it.

Will return when support is hit and hope it doesnt give.

Fredhave you noticed any ramping on the Scott Wilson .... chart breakout threadremind me who started that ramp in the first place?...I think there was a few Jockey Wilson 180000000000 claims
--------------------------------------

Dil - 25 Aug
Current year PE now approaching 6 , cheap as chips.

Ramp , ramp :-)

-----------------------------------
Dil- 11 Sep
Flying again , lets see if we can get a 100p+ finish today.
-----------------------------------
Dil- 09
160p by xmas Kim :-)
----------------------------------
A few little gems to wet the appetite

I think you'll find the " :-) " and "ramp ramp" comment show the true intent tabby.

Ohgot ya!

Dil. You are provoking me. 8-)

If I saw the present Chart of MDX, I would move on with only a momentary glance,

However, I bought some time ago and I am sold on the technology and think if they can get their act together there may still be a profit for me, but think the ride is going to be bumpy.

Also would't suggest anybody should buy it,but I guess you are keeping it on your watch list.

If, or when, it comes back on the market I will view it again.

But my father told me that big oaks from little acorns grow.

He made a lot of money from what some others considered muck.

But he also warned me that the acorn had to be in the right soil.

Have a good XMAS.

You too mate.

Official opening times for the LSE during these FESTIVITIES

Christmas Eve December 24, 2009 will close from 12:30 GMT
Christmas Day December 25, 2009 closed
Boxing Day December 28, 2009 closed

New Years Eve December 31, 2009 will close from 12:30 GMT
New Year January 1, 2010 closed

tabasco

re -ramp

Stop digging, you may even find - sheep sh!t - on " Dil " peanut "willie"

Are you saying, someone is chocking on its own vomit ( Dil ) ?