OT: British Banking Stocks

[121Josey]

If somebody is looking for a long play in the market (and possibly the short term), you should give a look to English banking stocks. They have lost over 50% of the their value in the past two days and 90% off their highs from the past ten years. That's nearing their 2008 crash levels (post-bailout). That's putting their dividends at over 5% (those who give them). Either they are in a better position to weather the storm than the continental banks or nothing picks up and moves better than financial services. If UK banks can't operate in continental Europe, then foreign banks can't function in the UK.

But beware of the Royal Bank of Scotland. The government owns 73% of it and they have no dividend. Worth a gamble but there are better options.

 

[jethreauxdawg]

Which ones are you looking at?

#freetipmonday

 

[121Josey]

Barclay's (BCS) and then Lloyd's (LYG) also the Spanish (global) bank Santander (SAN) doing business in the UK.

This guy thinks that there's a nice bounce coming but says to take the profit. I would get my original investment back and let the rest ride. http://finance.yahoo.com/video/3-reasons-buy-european-banks-212400211.html

 

[patdog]

Wow. Just checked Barclays. Been trading between 9.00 and 16.00 for the last 30 years. Down to 7.03 today.

 

[jethreauxdawg]

I've got an order waiting to go for barclays.

So I'm sure it will now plummet further. Yall be ready to buy next week.

 

[121Josey]

I bought last Friday above 8. The big money managers said that they would jump in Tuesday at noon. But the decline was enough for me to get in.

ETA: This Forbes article expresses the sentiment of why I bought.

The basic premise is that London is going to lose its status as a world financial hub due to Brexit. These companies will lose all relevance and slowly fade into oblivion.
As my column Friday stated, I think that line of thinking is bunk. It may not feel like it today, but voting “Leave” is the best decision the British electorate has made in decades. Britain is going to emerge from this confusion a stronger nation, free from the absurd regulations that emanate from Brussels and free to strike more beneficial trade deals with non-European nations on its own.

 

[patdog]

Just bought some Barclay's this morning. I figure worst case, I break even. Josey is right. Barclays (and England) isn't going to just whither up and go away because of this. Good chance they come back stronger. Even if they don't, there should be a little rebound from where they are now.

 

[fishwater99]

BCS at 7.3 now, why not jump on in..

 

[coach66]

I bought a little, will watch and react appropriately. Also bought VOD and BT,

and TOT and LAZ.

 

[fishwater99]

Bought it at 7.03 up now to 7.56. I would expect it to be above 8 by the end of the week if not sooner.