barclays will ge coming out with trading update on 07.05.2009 It is expected to report profits higher than market expectations.

A good Buy Medium to Long term

Interim Management Statement.

From the Blue Index blog

Barclays Harvest II
May 7th, 2009

Astonishingly, shares in Barclays (BARC) have nearly doubled since my last blog post some 6 weeks ago. While this is fantastic news for relieved shareholders, I have spoken to many traders and pundits with bruised and battered legs, who have been kicking themselves for not jumping on the Barclays recovery story any earlier. And with reports of huge demand for Barclays shares, the management team were under not inconsiderable pressure to deliver results.

They have

This morning Barclays announced a 12% surge in Q1 net profits to GBP736m, on revenues up 42% to GBP8.15bn. Pre-tax profits from Barclays Capital, the investment banking arm, shot up to GBP1.05bn, nearly triple the GBP365m. CEO John Varley said the acquisition and successful integration of the Lehman business had resulted in a transformational change in Barclays Capital. He added that trading had been generally consistent with the overall trend for February and March after an exceptional January, and that the bank recognises the importance of continued capital generation and it remains committed to prioritising returns over growth and to reducing leverage.

Full transcript here

http://blog.blueindex.co.uk/2009/05/barclays-harvest-ii/

Yet the sp hasn't moved through the 3 on this news, is there somemore news to come??

Results from the "basic" banking side not as encouraging as they might have been and whilst Barclays Capital looks to be doing very well, I remain a bit nervous that a lot of their profits may be linked to valuations of bits of paper or other financial instruments. Unless I missed it, there was no cash flow summary with the RNS and this would have been interesting to see. Having not sold any over last two years, relieved at recent recovery in the price, but imo they are not yet out of the wood.

Blackrock in 8.2bn Barclays deal
http://news.bbc.co.uk/1/hi/business/8096465.stm

And Barclays to have 19.9% of the new company. Unless, of course there is a bidding war!


Red

Is that a real trade somebody bought 20 million after the close?

Yes - it was me :-)

Surging today breakout ahead of results?

Strong today.

New article, Click HERE

Half yearly report.

Still bewildering to try to understand it all, but at least the 25% drop in size of the balance sheet looks very encouraging and dividend before the end of this year fairly certain.

From the FT.com..........

LONDON (Dow Jones)--U.K. Chancellor of the Exchequor Alistair Darling is under pressure to prove the U.K. is serious about cleaning up the toxic bank balance sheets, after missing the summer deadline for signing insurance deals with Royal Bank of Scotland Group PLC (RBS.LN) and Lloyds Banking Group PLC (LLOY.LN) worth GBP585 billion, the Financial Times reports Monday.

Darling has told officials to accelerate work on finalizing the deals, fearing that delays could undermine the U.K.'s ability to lecture other countries on the need for urgent action to clean up their banks at September's Group of 20 leading industrialized and developing nations summit in Pittsburgh.
Prime Minister Gordon Brown's team is growing irritated that RBS and Lloyds still haven't signed legal deals under the government's flagship asset protection scheme, in spite of agreeing their participation in principle in March.

Full story: http://www.ft.com/cms/s/0/40743398-7fa7-11de-85dc-00144feabdc0.html

09:26 September 17th, 2009
Barclays risky assets move a little too cozy

Barclays has come up with an interesting way to solve an optical problem. Concerned that the banks shareholders are nervous about possible future writedowns of wobbly assets with a value of $12.3 billion, it has sold them to its own employees.

This isnt necessarily a bad idea. But there are two things to dislike about this deal. First, it looks pretty cozy to sell to your own workers. And second, the deal looks potentially very favourable for the purchasers.

The deal does not remove the assets from Barclays balance sheet. What it does is allow the bank to pull them out of its mark-to-market book, where their carrying value is contingent upon the financial health of some monolines with whom Barclays has taken out credit insurance.

To do this it makes a loan to an entity, which then buys these assets. The loan still sits on Barclays books but does not have to marked to market. Even so its value is ultimately still tied to the performance of the assets.

This, the bank argues, will allow the shareholders to sleep easily at nights, knowing that a credit downgrade at some obscure monoline will no longer bring writedowns crashing down upon their heads.

This may seem fair enough. But to achieve this optically pleasing outcome, the bank has cut a deal that offers real upside for Protium Finance the entity that has purchased the assets and a group of its own ex-employees that will manage them.
Whole article here

Bb
i read "optical problem"and "optically pleasing outcome". i suppose optical can have or suggest different things to different people.i.e relating to that which pertains to sight,
so maybe that which we can see as a problem may perhaps disappear if we are no longer able to see it.well it would wouldnt it?( i.e. out of sight out of mind)
maybe others might see or read that problem which is very real,as being solved by that other word which seems to go and fit so well with the word optical, being the word illusion.
so can we solve the clearly seen and real problem by creating an "optical illusion" through "creative" yet legal accounting and reporting?
is barclays alone in attempting to do this? or not? or are they the first to break cover? everyones at it,... in my opinion,. dyor. dont mean it wont work.doent make it right though or does it? lets all sleep easy in our illusions.as long as price goes up nothing else matters. or does it?
regards
jkd

jkd
better to be aware that it's happening and ready to take profit when it all comes crashing down imo.. :))

Was suprised to see such a bullish set of Broker forecasts for Barclays PLC, look at all the BUY recos.....

Barclays PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

WestLB
11-12-09 NEUT 3.00 8.00

Shore Capital
11-12-09 BUY 6,025.00 27.30 4.00 5,992.00 27.10 10.00

Exane BNP Paribas
11-12-09 BUY 6,078.00 51.98 4.00 6,806.00 33.51 8.00

SG Securities
09-12-09 BUY 21.44 3.00 25.89 8.00

Oriel Securities
09-12-09 BUY 68.10 5.00 41.20 5.30

Keefe Bruyette & Woods Ltd [D]
07-12-09 OUTP 26.20 22.50

Evolution Securities Ltd
07-12-09 BUY 12,440.00 25.50 2.50 7,277.00 35.85 8.96

Charles Stanley
04-12-09 HOLD

NCB Stockbrokers Ltd
02-12-09 BUY 6,410.00 24.60 2.00 8,155.00 36.86 8.00

Nomura Research Institute
17-11-09 BUY 4,679.00 22.00 2.50 5,010.00 24.00 5.00

ING Financial Markets
13-11-09 HOLD 11.32 2.00 18.01 5.00

ABN AMRO [D]
02-10-09 BUY 2,026.40 6.87 2.00 4,601.87 20.84 5.26


2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 5,822.55 24.23 3.21 6,700.66 30.70 8.25
1 Month Change 927.14 -3.42 -0.27 949.89 3.26 0.25
3 Month Change 2007.63 6.13 -0.35 1330.71 8.76 1.75

Notes to forecasts
D flag: Panmure assumes that BGI disposal will help both the reported earnings and the capital ratios in 2009 but their concerns are for longer term and relate to sustainability of the remaining Group's earnings


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS -64.64% 31.72% 26.70%
DPS 9.13% -90.56% 157.01%

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)

Dividend Yield 11.81% 1.12% 2.86%

Dividend Cover 0.54x 7.55x 3.72x

PER 15.66x 11.89x 9.38x

PEG -0.24f 0.38f 0.35f

Net Asset Value PS 294.18p 352.31p 360.53p

amazing how banks in general seem able to "suddenly" become so highly profitable that huge bonuses are the order of the day once again.how do they do it?
dyor, i know you do gf.
regards to you
jkd

Cheers jkd.

Must admit they seem to have pulled themselves around pretty quickly and if this is 100% correct at the present SP BARC are a steal as the above brokers would indicate.

Went long mid of last week both these and LLOY as I had heard rumours of the bail out of dubai and thought banks would get an uplift.

gf
steals, as i am sure you know, are very rare
i have my doubts on this one but could be wrong.
good luck
regards
jkd