Ten shares tipped to take off in 2010
Here are 10 winning shares for the year ahead, as chosen by our writers
Published: 1:33PM GMT 04 Jan 2010
LLOYDS BANKING GROUP 50.69p
year was another utterly miserable time for shares in Lloyds Banking Group, which has plunged nearly 60pc over the past 12 months. However, it now looks oversold.
The market has treated both Lloyds and its partner in misery, Royal Bank of Scotland, as two millstones around the neck of the FTSE. For the past 18 months that's been the correct call but not anymore.
Lloyds and RBS or more particularly their poisonous acquisitions, HBOS and ABN Amro respectively have terrified investors with the constant threat of more toxic discharges. This fear of the unknown no longer applies to Lloyds.
Against the odds, the bank has pulled off a 13.5bn rights issue. The record-breaking issue attracted 92pc non-governmental support. But if investor confidence won't sway the market, the implied Government and regulatory conviction should.
There is no way the Treasury nor the Financial Services Authority would allow Lloyds to escape the asset protection scheme and launch a rights issue if there was even a remote chance it could unleash more bile into the market or if the regulatory labyrinth could rock the bank again. The hard analysis has been done: Lloyds must be the most vetted bank in the world, and for that reason it's a buy.
LAST YEAR I warned that Barclays was a risk, but one that was worth taking. The high street bank had come through the autumn carnage, bruised and battered but still independent. My bet was that banking institutions are vital and the strongest of a weak bunch would lead the recovery. This seemed over-optimistic as Barclays plunged to just 51p within weeks. But at this level the market knew it had over-reacted and Barclays soared up to 390p in September. The shares have come off again to 276p but are still up 76pc.
Ten shares tipped to take off in 2010