Barclays Bank question

[kzak]

Hi,

I've been looking at BCS fundamentals. According to yahoo finance, they are trading below book value and have an extraordinary amount of cash at hand (cash per share). They've had three-four quarters of consecutive revenue decline which explains why there stock price hasn't been preforming. My question would be when would it be a good time to buy it?

Would appreciate any response I can get!

Karim

 

[PieterSteidelmayer]

Hi,

I've been looking at BCS fundamentals. According to yahoo finance, they are trading below book value and have an extraordinary amount of cash at hand (cash per share). They've had three-four quarters of consecutive revenue decline which explains why there stock price hasn't been preforming. My question would be when would it be a good time to buy it?

Would appreciate any response I can get!

Karim

On that basis, you should go to the user car lot and ask for the cheapest car.

Depends on who is stating the book value, Yahoo isn't really a solid basis upon which to make investment decisions. EPS has been impacted by issuance of a large number of shares to bring the balance sheet into line which places a drag on momentum. The planned restructuring will please generally and this will in principle filter though to share price in due course.

But why not wait for it to actually show an improvement before getting in?

 

[yellowfloyd]

In my experience there is no golden rule for a "good time to buy". You've done your homework, and you seem pretty confident. If you can afford to lose what you're putting up, go for it.

Good luck!

 

[Hate2Lose]

Hi,

I've been looking at BCS fundamentals. According to yahoo finance, they are trading below book value and have an extraordinary amount of cash at hand (cash per share). They've had three-four quarters of consecutive revenue decline which explains why there stock price hasn't been preforming. My question would be when would it be a good time to buy it?

Would appreciate any response I can get!

Karim

Interesting one! Trading below book value would mean that the value would only be released if it were taken over or wound up. It’s trading below book for a good reason – they think that the company will continue to lose money. Companies are valued on predicted future cash flow.

When is a good time to buy? I would say when you think the company’s fortunes will turn, i.e. when you think it has a future!

 

[Atilla]

Hi,

I've been looking at BCS fundamentals. According to yahoo finance, they are trading below book value and have an extraordinary amount of cash at hand (cash per share). They've had three-four quarters of consecutive revenue decline which explains why there stock price hasn't been preforming. My question would be when would it be a good time to buy it?

Would appreciate any response I can get!

Karim

I've been waiting for them to touch 220s but looks like falls maybe even further especially in light of market retracement.

There is increasing talk of investment banking industry moving towards algo trading with fewer traders - and under fat cat over-paid Bob Diamond, the investment side & number of traders ballooned against the trend. So now they are looking at redundancies and reshaping the investment side at great cost having built it up at equally great cost. Some will say they bought it cheap. Either way it's some cost.

One other point against them is that they pay more than half their profits as bonus to 500 top staff instead of dividends to millions of shareholders.

So in light of these fundamental points best to see further drops and pick up a bargain once they've sorted out useless Bob's mess for which he was paid literally millions.


If you did want to spend your dosh on banks - Lloyds looks cheap in light of expected dividends to be announced. Last dividend paid by them was in Aug 08 approx 11p. So if one buys now @ 72p and patiently wait for the good old days - one could be sitting on some tidy regular income. :idea:

imo - ditch Barclays & load up on Lloyds Bank.

 

[Atilla]

http://www.bbc.co.uk/news/business-27137764

No surprises there then...


You've got to laugh

 

[A Dashing Blade]

As an FYI, it's been the main "no-goto" operation for a good 18 months now.

 

[Atilla]

I know it's off topic on Barclays but switch over to Lloyds is well worth it imo.

http://www.bloomberg.com/news/2014-...-rises-22-percent-as-impairments-dwindle.html


Rock on Jimmy!

 

[kzak]

I know it's off topic on Barclays but switch over to Lloyds is well worth it imo.

http://www.bloomberg.com/news/2014-...-rises-22-percent-as-impairments-dwindle.html


Rock on Jimmy!

Thanks for the advice, Im actually still learning how the ropes works. I started investing two years ago (primarily on the TSX (Toronto) & NASDAQ) thinking that I knew everything and I got slaughtered. I think I'm going to sit on the sidelines and see how the bank stocks trade (what the street looks for) before I jump in!

Thank you for your input, Im definitely going to be monitoring Llyods, Barcalys and the other banksters!

 

[NVP]

Hi,

I've been looking at BCS fundamentals. According to yahoo finance, they are trading below book value and have an extraordinary amount of cash at hand (cash per share). They've had three-four quarters of consecutive revenue decline which explains why there stock price hasn't been preforming. My question would be when would it be a good time to buy it?

Would appreciate any response I can get!

Karim

when the price starts rising ?.........dont get to fooled by fundamentals..they are overrated

N

 

[Atilla]

when the price starts rising ?.........dont get to fooled by fundamentals..they are overrated

N

Not necessarily when it comes to equities.

imo give due consideration to;

1. Fundamental Analysis
2. News
3. Technical Analysis

All three play a part in different weights at different times in price movement determination.

If one is a long term investor then FA has greater weight.

Must read if you are into shares. Old and timeless good advice - The Zulu Principle: Making extraordinary profits from ordinary shares by Slater, Jim

 

[TimWarren12]

there is no exact time to buy a stock and stuff and they are pretty volatile most of them so you should be confident enough to go for it and no one can be pretty sure about it.