# Lloyd's Bank (LYG:US)



## nakedput (Jan 2, 2013)

What are your thoughts on LLoyd's Bank? It looks to be on the way up.

Q1 had profit of 2 billion (compared to a loss of 5 million last year). They are a government owned entity (retail bank in the UK), will not go bankrupt (unless the gov't lets them ala Lehman Bros), and are currently trading at a PE with a grand total of 0.80. If you look at a chart from mid April to now, the stock has been going up and up and up, barely even correcting. 

The state of Europe in general tells me to stay the hell away from any banking stock as they are too risky, but the contrarian in me tells me that this could potentially yield in excess of 100% returns in a few years. What do you all think?


----------



## londoncalling (Sep 17, 2011)

I am looking at it now. Seems to be a stable UK bank that has hinted at reinstating a dividend once they begin to turn a profit. Anybody else looking at this or any UK/European banks?


----------



## the-royal-mail (Dec 11, 2009)

Seems at odds with the gov't:

http://www.financialstrend.com/lloy...elyg-caught-in-one-billion-tax-web-14275.html


----------



## londoncalling (Sep 17, 2011)

thanks for the link TRM. 1 billion pounds is not chump change. Still considering it for a long term hold. It is up over 60% in the short term but still way down using the 10 yr. Another option for me is Banco Santander. One is a play on the mortgage housing recovery in the UK. The other is more of a global retail bank play.

Cheers


----------



## londoncalling (Sep 17, 2011)

Bought a tranche @ 5.49 for the long run.


----------



## jacofan (Apr 17, 2013)

Well I took a dip into the LYG pool the past couple days with limit orders that were picked off. With Mark Carney over there as the BOE Governor I think the banks are going to recover well and that Mark will help guide them to stability similar to Canada's. This will be a long hold for me and hope the divy gets brought back this year too! If I can resist the urge to sell and hold long term I think we have a big winner with this one. Some might call it just a gamble, probably is :nevreness:


----------



## liquidfinance (Jan 28, 2011)

Lloyds was always the most conservative of the UK banks. The only reason it nearly collapsed was because the UK govt pressured it into buying HBOS. The main route of the problems. 

The bank should be good in the long run and the govt has now started to sell some of its holdings. No doubt this will weigh on the price a bit but has to be positive in the long run.

http://uk.reuters.com/article/2014/03/25/uk-lloyds-share-sale-idUKBREA2O1CO20140325


----------



## londoncalling (Sep 17, 2011)

thanks for the link liquid. Hoping to pick up more next week.


----------

