Discussion
Barclays does NOT have any government ownership which makes it a different proposition. Lloyds problems are not over, in fact with the government now owning near enough 60% of the bank its problems are unfortunately likely to increase. Disaster for Lloyds shareholders as they were profitable and in a good position to weather the storm until the HBOS deal, amazing lack of due diligence here and now they are screwed. Personally I wouldn't touch them, they can easily fall far further despite appearing to be `cheap`.
catcha said:
Barclays does NOT have any government ownership which makes it a different proposition. Lloyds problems are not over, in fact with the government now owning near enough 60% of the bank its problems are unfortunately likely to increase. Disaster for Lloyds shareholders as they were profitable and in a good position to weather the storm until the HBOS deal, amazing lack of due diligence here and now they are screwed. Personally I wouldn't touch them, they can easily fall far further despite appearing to be `cheap`.
+1.And if the problems continue which everyone expects they will, the government could end up at 100% ownerships which means private shareholders get wiped out and their shares become worthless.
The other point to note is, the road back to being profitable may be much longer than other companies in the market so you have to be prepared to hold on to these share for some time.
Only buy their shares if you understand you could very quickly lose your entire investment and are happy to take on a high level of risk.
Edited by Ordinary_Chap on Saturday 7th March 22:02
catcha said:
Disaster for Lloyds shareholders as they were profitable and in a good position to weather the storm until the HBOS deal, amazing lack of due diligence here and now they are screwed.
I do think, especially with the new provisions in Companies Act 2006, there is a strong case for shareholders' legal action against the Directors over that deal.condor said:
rinker said:
I bought a load Friday.
Even though it's oft been mentioned on here that buying on a friday is a rookie mistake?...the sage advice given by many in the know ...is to wait till after you're read the Sunday's newspapers.Dupont666 said:
If the goverment carries on to bail them out and eventually takes ownership (in theory) would all shares become null and void and be effectively worthless?
at the moment there is a clause in the deal that means that the govt cannot own more than 75% of Lloyds and im 99.9% sure that its also 75% on RBSGassing Station | Business | Top of Page | What's New | My Stuff