goldfinger
- 19 Mar 2013 13:57
cynic
- 03 Jan 2014 14:56
- 1401 of 2763
knickers! :-)
took profit far too early, but as i often tell others, no one ever went broke banking a profit
goldfinger
- 03 Jan 2014 15:42
- 1403 of 2763
Barclays PLC, Lloyds Banking Group PLC and Royal Bank of Scotland Group plc: Which Is The Better Investment For 2014?
By Tony Reading - Friday, 3 January, 2014
The banking sector should have a good 2014, as bank shares are generally correlated to the economies in which they operate. But each of the UK’s banks face different prospects and challenges. How do Barclays (LSE: BARC) (NYSE: BCS.US), Lloyds (LSE: LLOY) (NYSE: LYG.US) and RBS (LSE: RBS) compare?
Momentum
Lloyds has momentum. Its shares have risen 62% over the past twelve months, pushed by progress in its restructuring plan and the successful sale of government shares. Three factors should provide further momentum throughout 2014:
A buoyant economy and booming housing market. Lloyds provides a fifth of all UK mortgages, demand for which is being stimulated by the government ahead of 2015′s general election.
Progress on Lloyds’ transformation and the resumption of dividend payments.
Further disposal of the government’s shares. A sale based on publication of Lloyds’ results in March would coincide with Vodafone shareholders reinvesting their cash receipts. A retail tranche is likely.
In the longer term, Lloyds’ dependence on UK retail and commercial banking limits its growth prospects, but with a 70% payout policy it could become a good income stock.
Downward cycle
RBS’s immediate future is less clear. It’s less far on with its transformation plan than Lloyds, so there should be plenty of upside for patient investors. And a healthy economy will accelerate the disposal of bad and non-core assets, including US subsidiary Citizens Bank. But the new CEO is cautious on timing.
The bank has acquired an accident-prone reputation: tussles with the government over strategy, losing its finance director after 10 weeks, allegations that it pushed businesses into administration, and a series of IT breakdowns that hint of fundamental systems issues.
RBS could surprise on the upside or the downside in 2014. But on a downward earnings-rating cycle, they’re not on my buy-list.
World class
Barclays has also had a difficult year. An unexpected imposition of a leverage ratio forced a deeply-discounted rights issue. That put back the transformation plan by a year and dilutes future earnings. Capital markets activity hasn’t grown as much as the general economy, so investment banking, which contributes around 40% of Barclay’s business, hasn’t fared as well as retail banks.
But Barclays’ investment bank is now world-class, and it has valuable businesses in Barclaycard and Africa which together make more money than its retail bank. 2014 won’t be a great year, but in the longer term Barclays has the biggest upside. And it pays a real dividend, something the other two banks can’t yet boast.
goldfinger
- 03 Jan 2014 15:44
- 1404 of 2763
Going to try and cover a lot more smaller shares including AIM in 2014 as I see this as the area which is relatively undervalued going forward.
halifax
- 03 Jan 2014 15:49
- 1406 of 2763
just as long as it isn't small miners or oilies!
cynic
- 03 Jan 2014 15:50
- 1407 of 2763
looks like a good analysis and summation
goldfinger
- 03 Jan 2014 16:04
- 1409 of 2763
Juust a quicky we have discussed previously, I dont count that spike probably computer glitch..........
Breakout..............
skinny
- 03 Jan 2014 16:29
- 1411 of 2763
skinny
- 03 Jan 2014 16:34
- 1412 of 2763
GF - it looks like you have your end underline and / the wrong way round after "AIM MARKET AND ITS COMPANYS"
goldfinger
- 03 Jan 2014 16:39
- 1413 of 2763
Cheers for posting skinny wanted to include all the companys aswel so was easier doing a transfer from readmean brokers.
Second point wrong way around?? not with you.
goldfinger
- 03 Jan 2014 16:40
- 1414 of 2763
ahhhhhhhhhh I am now.
How the hell does that go from one post to another.
Ill sort it. cheers.
goldfinger
- 03 Jan 2014 16:44
- 1416 of 2763
Will be doing a super dooper AIM chart feature later tonight, probably at lunch during the test match he he. Working on reception as cover at one of my pads so Ill be bored anyway especially with England getting hammered.
goldfinger
- 03 Jan 2014 16:48
- 1418 of 2763
PS, DC I might be blathered as I generally help myself to the bar, so if their are a few mistakes ill clear them up later in the weekend.
goldfinger
- 03 Jan 2014 21:28
- 1420 of 2763
Right my new start with small caps and AIM stocks where I think the real value may be found during 2014. Please add your charts aswell including large caps, beginners intermediates pros all welcome, any kind of chart accepted.