Chart of the Week: Will Lloyds ever recover?

Target of 40p?? I might as well go and stick my head in the sand for the next 10 years right now.

I don't agree. lol.

Neither do I.

I think the banks are undervalued.

The problem is the market doesn't.

The market is causing me pain.

I sold in January for a small profit plus divi's having held them for 2 years. I wouldn't be looking to buy back in just yet.

XD tomorrow for 1.07p but even that isn't helping.

Looks likely to breach 60p when it goes XD tomorrow, if it doesn't breach today!

Ouch

Who you kidding CC.......
You only paid 22p for those shares.......😉

What year was that?

Got some I paid 40p in 2011.

Ah. Sorry fred forgot you're too young to remember.

LLOY - what I'm struggling with is that the underlying profit at the bank is rising, it's paying an acceptable dividend, the balance sheet is strong enough it's doing a considerable buy back program yet the share price keeps drifting lower.

Given it's around 60p everything being sold is likely to be at a loss unless the holder has been holding a long time and I don't believe anyone is shorting is down here.

So, they are selling at a loss as they see better value elsewhere... which is fair enough I guess. Or they are selling as they believe everything is going lower and it's better to convert to cash.

Dividend yield is 5.07%. the interim dividend was increased by 7%. If they do the same at year end that would give yield of 5.4% at 60.0p.

Solid, sensible and growing by more than inflation but I sense the market doesn't see a 5.4% yield as very exciting at the moment.

This is becomming a game of attrition - but will I give up or will the price (eventually) rise!

I've already chucked in my short term CFD trade for a 2.5p loss. Mostly because I didn't see it rising in the short term and the financing costs were starting to annoy me.

I guess the fact that I haven't re-entered the long lower down tells me I'm not that confident it is going anywhere in the short term.

My concern is that with some form of share price support through the dividend, the rules seem to have changed and the market now demands more of a return. The BOE have raised interest rates by 0.25% but it's more than that. My gut tells me the market now wants something much closer to a 6% return on LLOY and it's kind of like a game of how quickly will LLOY raise the dividend. Not fast enough it seems.

I could be wrong. I have some ISA bond money which will require re-investing in October. LLOY is kind of on the list as availability of bonds and preference shares paying a fixed return is low. I might just sit in cash for a while with it.

I'm due a fairly hefty sum from JLIF and will probably sit on it until next year now.

Is there better stocks to own than this one?

Chart is not encouraging on short or long term ranges.

Not held a Banking stock since the melt and Northern Lava hurt me badly.

May be thats my problem with this sector. :)

no PPI 2018 shares react year in front, on date ppi ends S/p to go up, bb
note s/p did not go down full penny, usually one & a half times, means s/p
has hit bottom,

Hmmmm - PPI payouts from beyond the grave

CC - that "Wills" fiasco - - I suspect the Big Issue is those that have died and been "clobbered" . . . . . Yes, living folks can re-write their Wills ( We might assume that any prior document is invalid at that moment....but is it? - there could be a clause that gives them the right to a big-fee - to prevent folks using the service, then having it re-written without any hobbles.)
I suspect this ( Like PPI ), is down to "reasonableness" - I'm not sure why "Banks" have to be so reasonable, when so-called "Pay-Day Lenders" appear to be worse than legalised sharks ( Can I say that?) . . . .
I guess there may be some Legislation that applies to Banks which does not apply to other lenders, who are loaning their money... whereas a Bank is lending "our" money..... Others here may know the details.

If those Wills were wrong, it would be easy enough for each Bank to offer a re-write ( for a very small fee?) that improved the position, while still giving the Public-Face of trust. If I was asked to pen a suitable letter it might offer an "Update" with "smaller fees, since the Service has proved so popular" while allowing folks to change one, or two, beneficiaries - but not a total re-write.
A good-will gesture for those clients that have died might be difficult, - who would you give it to? - Probably to top-five beneficiaries with an acceptance clause that they relinquish any further claims . . . . if the payment was a few £00, that might fix the problem.
The PPI fiasco has become a Fiasco-Squared, with small outfits creeping out of the woodwork, offering free money . . . . are they "real" - or just hoping to pass your Banking details onto a 3rd Party, perhaps.... Surely the Banks know who they charged...
+
And while I think of it . . . . has any "Banker" been jailed over the 2007-8 fiasco?
Why not? Surely any further "shock-risk" to the Banking Industry is long-gone and the Public would like to know anyone messing with the Nation's savings will have to answer.... and forced to find employment where their actions can be 24/7 monitored.

Credit Suisse today reaffirms its outperform investment rating on Lloyds Banking Group PLC ORD (LON:LLOY) and raised its price target to 90p (from 85p).

✓

I wish the market would think the same and buy a few more.