Lloyds Bank strategic review, you read it hear first .....

30 Jun

…..or actually it’s been appearing in the newspapers for about the last 10 days.

How will the share price react to this today then ??

Well there is a well known investment saying “if it’s in the papers it’s in the price” .

So this review must have been factored into the price for the last 2 weeks at least.

Ah yes the Lloyds share price. On the 24^th March with the share price at 60p Lloyds were tipped as a buy by brokers Evolution:

“Lloyds is the only bank in our coverage where we think investors might have a realistic chance of doubling their money, on an 18-24 months view. Lloyds remains our Top Conviction Buy.”   

Impressive indeed, and if you bought at 60p then you would be looking at a share price of 44p as we speak.

Oh dear ……………..

But if you believe that review then you are now looking at a potential increase of three fold if you bought now. Would that be 200% or 300% ? Not really sure but of the maths but an impressive investment if it came off.

So what will Antonio’s review say today, blah blah boring no doubt. Another 15,000 jobs to go, 1 billion out of costs, Halifax a challenger brand, Scottish Widows is staying, coming out of the APS scheme, bring back dividends next year …………

So unless Antonio goes off message, which is about as likely as Gordon Brown admitting the Lloyds/HBOS thing was all a huge mistake in the first place, it should be a predictable affair today.

But this quote from a city analyst is interesting:
“Investors will not be satisfied just by efforts to slim down the bank and will want a clear idea of the key areas in which it plans to invest over the next few years to boost revenue.
“The worry is that Lloyds is cutting costs to stand still,”

Lets hope the investors get satisfied then at some point.

Dunover Investments have been sinking money into Lloyds at various prices over the last year. It’s all been documented here:
http://www.dunover.com/investments/index.php?topic=813.0

Having told all family members and friends to do the same I’m finding life a little uncomfortable with a share price sitting at 44p.

Staying in is the new night out for all Lloyds investors at the moment, or that is certainly the case with my social life for now.

My calls of “don’t panic” and “it’s a long term investment” are best made in phone calls, it’s more pleasant that way and easier to avoid eye contact.

But when that share price hits the Evolution target of £1.20, I know they will all love me again …………