Make sense to buy BARCLAYS?
Discussion
<<Barclays PLC (BCS) gave in to pressure from regulators with a plan to issue £5.8 billion in new shares, as part of what Chief Executive Antony Jenkins called "a bold but balanced plan" to address a capital shortfall. The bank is to start marketing the new shares at 185 pence apiece, a 40.1% discount to Monday's 309.5 pence closing price. It said it will raise a further £2 billion by issuing "contingent capital" bonds that automatically convert to shares in times of stress. Barclays said the moves and separate measures to shrink parts of its business should push its ratio of equity to assets above 3%, the minimum required by U.K. bank supervisors, by June 2014. Barclays made the announcement on capital while releasing first-half results that showed a £671 million net profit, up from £148 million in the first half of 2012. Pre-tax profits, after adjustments, fell 17% to £3.59 billion from £4.34 billion, in part from new provisions to compensate customers.>>
So the shares you buy might not be worth the same % of the company as previously thought. Hence the value has fallen.
Not sure £5.8bn will make a massive LT difference but you may lose before you win.....
So the shares you buy might not be worth the same % of the company as previously thought. Hence the value has fallen.
Not sure £5.8bn will make a massive LT difference but you may lose before you win.....
Picked up a little towards the end of the day... Hard to assess the true value as they convert in times of need.
I'm tempted as a long term.... The way Barclays raised capital last time using Abu Dhabi funds to weather the banking crisis makes it hard to assess their shape.
Proceed with caution
I'm tempted as a long term.... The way Barclays raised capital last time using Abu Dhabi funds to weather the banking crisis makes it hard to assess their shape.
Proceed with caution
As part of my share spread I bought the following shares two years ago:- RBS-down slightly, LLoyds-small profit, HSBC-small profit, Barclays-small profit. I only bought a 1000 in each as I remebered the days when they were £30 a share. All in all wishful thinking on my part as there are others like RR etc who have outperfomed the banks by a country mile. In the event of wanting some cash I'll probably cash in the bank shares first and leave the others I bought in place.
Lawrence5 said:
Picked up a little towards the end of the day... Hard to assess the true value as they convert in times of need.
I'm tempted as a long term.... The way Barclays raised capital last time using Abu Dhabi funds to weather the banking crisis makes it hard to assess their shape.
Proceed with caution
Especially as they are under investigation for how they raised money from Qatar (not Abu Dhabi). Barclays under Bob Diamond sailed fairly close to the wind in a lot of ways (especially in 2008) I think the FCA and BoE would love to dish out some tough love.I'm tempted as a long term.... The way Barclays raised capital last time using Abu Dhabi funds to weather the banking crisis makes it hard to assess their shape.
Proceed with caution
Cheib said:
Barclays under Bob Diamond sailed fairly close to the wind in a lot of ways (especially in 2008) I think the FCA and BoE would love to dish out some tough love.
Hmm, sounds very much like a political shoeing to me. I'm not sure what exactly they are meant to have done wrong. Certainly I followed events closely at the time, particularly as I was working there. Timeline was:- Barclays approaches existing investors (which I guess were mainly pension funds and other big UK shareholders) for emergency funds. They couldn't cough up the required amounts in time. Barclays does a deal with Qatar which would avoid a Govt bailout and far greater loss for existing shareholders. Qatar gets some cheap shares which it offloads a year later when the credit markets are back to normal. Or would the shareholders would have preferred a bailout ala RBS or HBOS? I guess not. IMO Jenkins pulled off a very good deal - yes they lost some kudos with shareholders but managed to avoid Govt control and snap up the Lehman franchise. Only Gordon and Chums would grumble at the outcome.Edited by fido on Thursday 1st August 15:07
fido said:
Cheib said:
Barclays under Bob Diamond sailed fairly close to the wind in a lot of ways (especially in 2008) I think the FCA and BoE would love to dish out some tough love.
Hmm, sounds very much like a political shoeing to me. I'm not sure what exactly they are meant to have done wrong. Certainly I followed events closely at the time, particularly as I was working there. Timeline was:- Barclays approaches existing investors (which I guess were mainly pension funds and other big UK shareholders) for emergency funds. They couldn't cough up the required amounts in time. Barclays does a deal with Qatar which would avoid a Govt bailout and far greater loss for existing shareholders. Qatar gets some cheap shares which it offloads a year later when the credit markets are back to normal. Or would the shareholders would have preferred a bailout ala RBS or HBOS? I guess not. IMO Jenkins pulled off a very good deal - yes they lost some kudos with shareholders but managed to avoid Govt control and snap up the Lehman franchise. Only Gordon and Chums would grumble at the outcome.Edited by fido on Thursday 1st August 15:07
http://www.telegraph.co.uk/finance/newsbysector/ba...
If that's proved they're in massive s
t. That's a very serious allegation. Of course if the government hadn't bailed out RBS and HBOS Barclays would have followed. The Govt effectively bailed out the whole banking system which obviously benefited the shareholders in all those banks. Jenkins would have been fighting for the bank not buying Lehman's US business if that hadn't happened.
Gassing Station | Finance | Top of Page | What's New | My Stuff