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LLOY - Share buyback 2019

lse:lloy

#302

Thats what i admire about LTH’s. You only have to give them one happy morning in five. Or one good year in twenty. I love the positivity


#303

Don’t know about you, but I am easily pleased life I like the simple pleasures , honest shares are just an hobble ( like stamp collecting ) and the day I lose the fun side to investing I sell up and buy a Caravan in Great Yarmouth for me and Buster to watch the sea roll in and out :slight_smile:

LOVELY


#304

Sometimes i forget that it’s a pastime to many. Good point regardless


#305

Well it’s better than being negative all of the time, as reflected in your posts anyway !.

Personally if the market is up I think that’s good for the portfolio capital valuation but probably means that it’s not a good day to buy anything. And the converse is also true, I like to see quite a few down days in a row (ideally) before I think it’s worth trying to buy anything. And then I only tend to do so if the target of my purchase has hit some pretty optimistic buy limit that I’ve set.

One has to accept that BOTH up and down days (or even periods) are useful for managing your portfolio.

ATB

Pref


#306

Absolutely true. Bears love rise days. Buyers love bad days… . (As long as it isn’t a day to book out)

Don’t know why you think my posts are negative. Bad days good for bulls. Bad days good for open shorts. All happy


#307

@PrefInvestor1 @regardless

I must say though, it’s a positive when you two are around. Great attitudes regardless of others positions.

It’s refreshing


#308

Thank you.
I have registered for Fidessa Fragulator Live.
You are right - the platforms are not dark pools but seem to offer a dark transaction.
I have a lot to learn.

plm


#309

I continue to struggle with the fall in the Lloyds price during the buyback period, both this year and last, and my “conclusion” was only a suggestion or hypothesis. I, and others, have offered an alternative hypothesis - staff are given a massive handout of bonus shares around this time and these may flood the market. Matthew Lynn in the Daily Telegraph last week suggested that high street banks had had their day - that may be it? I just do not know.

From your chart it would appear that a single buyer has been taking around 10% of all volume since 1 March and cancelling these shares. In any other market I would have thought this would produce a price rise. Imagine a single buyer taking 10% of all housing stock offered for sale each day and demolishing the houses bought: this is not an exact comparison but it makes the point. If the price of houses continued to fall then one suggestion might be that folk were fed up living in houses and were finding another means of shelter e.g. tents, caravans, motorhomes, etc.

plm


#310

I’m very minimalist. Never into the materialistic side of things at all. As long as nobody is giving me a headache im happy


#311

The movements in the LLOY share price are not too difficult to understand. As a primarily UK facing bank it is particularly impacted by the prospects for the UK economy. Thus, when we have had optimisism that a soft Brexit deal might be agreed the LLOY price has gone up, and when those hopes are dashed then the price falls again. There will be no breakout until there is positive news of a non-destructive Brexit of no Brexit at all. In the event of a hard Brexit there will be a further fall but I hope most of the bad news is now priced in. Underneath the rubble there is a decent bank in there. I am not losing sleep over LLOY.

Cheers,

Frog in a tree


#312

As long as Lloyds sticks to increasing the Dividends, and my wages are going up Quarterly starting in 2020 a higher share price can wait :wink:


#313

I bet a lower one can wait too ?


#314

Low 50s odds on :wink: with increasing Dividends to keep the Parrot happy…


#315

Increasing div … Share buybacks … happiest parrot is in the Lloyds oval office. Counting the bonuses.

But hope you are too over time. Be a nice change from the jackdaws creaming it


#316

Hi All, Had some scary stuff going on with the PC this morning. Lots of weird errors and hangs and 1000s of disk errors on the pagefile being recorded in the event log. Rebooted and has been ok since. Quickly backed up my disk to a removable, but I might have a failing disk or a power supply problem. Just have to wait and see. Oh joy.

More Woodford fallout today I see. WPCT down 4.x%, NRR down a bit more (but no further RNS reports of disposals by woodford). Still keeping my powder dry there in case he has to sell his remaining 15%… Hargreaves down another 2.x%…

Anyway Lloyds up ~1% so regardless will be happy…

ATB

Pref


#317

The actual percentage is less than 10% since I ignored the volume on other trading venues when deriving the percentage shown in the chart. The fact that one buyer is taking this proportion would only be apparent when you study the buyback data. You will not see this from the trade data. The shares being bought back are being bought in small parcels, where the identity of the buyer is not declared.

I had analysed one day’s trading, and the shares being bought back were taken in 2,118 separate trades spread over the whole day, with an average size of 5,616. The largest single trade was for 59,635 shares. I might suggest that it is very large single trade sizes that tend to move the sp, not an accummulation of small trades. Do not forget that ~90% of the shares are being bought by other traders, so these are more likely to affect the price rather than those being bought on LLOY’s behalf.

I have plotted the 2018 and 2019 daily volumes against the LLOY SP as shown below. I would suggest that there is no visible link between the volume bought and the sp.

With respect to the staff bonus shares, I believe in most cases the new allocations are locked in, and these cannot be sold immediately. I do not believe that there is a high volume of the released shares being sold. The Directors have large allocations, and when these are released and subsequently sold then they are obliged to issue a related RNS. I am unaware of a considerable disposal by Directors.


#318

Yes staff sharesave schemes are 3 or 5 year saving plans … you can invest up to £500 a month taken from salary

Management Bonus schemes I believe need to be held a few years before any cash in


#319

#320

It’s such a high profile set of 3 vehicles, the Equity Fund, WPCT, and the Income Fund. They have been such consistently poor performers over such a long period of time, that they could be right in many people nervously downsizing their exposure to managed funds in general.

The big exodus?

I have one serious investment in FEET and a modest Smithson investment, but I’m not planning ever to buy a Unit Trust as the liquidity has been illustrated here front and centre.
If the overall market starts to get more nervous it will also spill over into smaller stocks like AIM where liquidity will become almost impossible.

If possible it’s probably better to stay away from fund managers that use Unit Trust type structures.

Games


#321

In my experience, all buybacks I’ve followed previously have occurred on a single exchange, including HSBA, GLEN, RR. However, they also normally say so in the daily RNS, indeed many show the exchange and the time of day for EVERY transaction for full transparency but the LLOY buyback RNS doesn’t.

It did say this about the terms of the buyback, are LLOY listed elsewhere besides London and New York which doesn’t incur ‘doubt’ about the number bought per day? I doubt it.

1 March 2019 LLOYDS BANKING GROUP COMMENCES SHARE BUYBACK PROGRAMME

Lloyds Banking Group plc (the ‘Company’) is today launching a share buy-back programme to repurchase up to £1.75 billion of ordinary shares, as previously announced on 20 February 2019.

The Company has entered into agreements with Morgan Stanley & Co. International plc and UBS AG, London Branch (the ‘Joint Brokers’) to conduct the share buyback programme on its behalf and to make trading decisions under the programme independently of the Company. Under the terms of the programme, the maximum consideration is £1.75 billion. The programme will commence on 1 March 2019 and will end no later than 31 December 2019. The sole purpose of the programme is to reduce the ordinary share capital of the Company.

The Joint Brokers will purchase the Company’s ordinary shares as principal and sell them on to the Company in accordance with the terms of their engagement. The Company intends to cancel the shares it purchases through the programme.

Any purchases of ordinary shares by the Company in relation to this announcement will be made in accordance with certain pre-set parameters set out in the terms of each Joint Broker’s engagement, the general authority of the Company to repurchase shares granted by shareholders at the Company’s annual general meeting held on 24 May 2018 (which permits the Company to purchase no more than 7,219,629,615 of the Company’s ordinary shares), the EU Market Abuse Regulation (596/2014), the Commission Delegated Regulation (2016/1052) and Chapter 12 of the Financial Conduct Authority’s Listing Rules.

For the avoidance of doubt, no repurchases will be made in the United States or in respect of the Company’s American Depositary Receipts.

References in this announcement to EU regulation shall be deemed to be to the equivalent laws of the United Kingdom if the United Kingdom is no longer part of the EU.

- END -