Buy tsb shares

Posted: crazyone On: 05.07.2017

We no longer check to see whether Telegraph. To see our content at its best we recommend upgrading if you wish to continue using IE or using another browser such as Firefox, Safari or Google Chrome. By Richard Evans , Investment Editor.

Should you say yes to TSB shares?

Should you buy shares in TSB?

If you want to do so before the flotation closes, you have just hours left. The new lender, which is being spun out of Lloyds, likes to present itself as the "boring" bank. It will stick to its knitting — UK operations only, with a business centred on current accounts and residential mortgages, and no clever stuff such as investment banking. Five reasons why you should stay well clear of the TSB float.

Better still, it has been surgically stripped of other nasties that most banks accumulated in the boom years, such as exposure to PPI claims. It is even indemnified by Lloyds against unforeseen costs that arise from its IT system.

How To Buy Stocks

It's also true that TSB is selling its shares cheaply relative to the value of its assets, while buy-and-hold investors will get bonus shares in a year's time. Why you should avoid the TSB and UK Banks. Should you buy 'boring' TSB shares? How investors have missed out.

TSB priced 'to go' with loss-leading valuation. First, there will be no dividend until at least as the bank wants to use its profits to grow rapidly. Its hopes for growth seem to be based on selling more mortgages.

But a mortgage is a product where price is everything, so the only way to grow your market share quickly is to cut the interest rate as low as possible, which means making less profit on each mortgage. And signs of a peak in house prices and an early rise in interest rates, along with attempts by the authorities to rein in lending, are unlikely to help banks sell more mortgages. So will I buy the shares? If all I wanted was a quick profit on the first day of trading, I probably would.

As long as markets more broadly don't take a dive — hardly impossible, given events in Iraq, for example — there's a good chance that the shares will rise modestly, thanks to their keen price.

But I prefer long-term investing. And here I think there are more attractive homes for my money.

TSB shares jump on trading debut and lift prospects for future Lloyds sell-off | Business | The Guardian

Banks are about as cyclical as shares get, so you need to sell at the right time. I also can't help remembering that Terry Smith, who probably understands company accounts better than most fund managers, said he would never buy shares in a bank.

Howard Marks, an Oxford University graduate turned drug smuggler, made millions. Now he eagerly awaits royalty cheques. Paul Daniels wasted too much on Ferraris but has made a fortune on his home - despite the flood.

Following George Osborne's announcement of the Budget, The Telegraph looks at the numbers on the UK's economy and financial health. George Osborne should simply abandon changes that will reduce incentives to save and create yet more uncertainty.

buy tsb shares

A light-hearted quiz about the gaping maw of financial misery that perpetually threatens to devour us all. Accessibility links Skip to article Skip to navigation. Wednesday 21 June James Bartholomew The real reason stock markets plunged in January. William Littlewood China in crisis? Another credit crunch in the West is far more likely. Andrew Oxlade Time to panic?

No, follow the investment rulebook.

TSB shares: Buy, Hold, or Sell?

James Anderson This is why I'm worried for investors in the FTSE Why I won't be buying TSB shares Comment: If you want shares in TSB you need to act now. But I won't be joining you, writes Richard Evans. But there are plenty of reasons to hesitate.

buy tsb shares

Offering 5pc interest on current account balances won't help profit margins either. I'm not sure I'd go that far, but I'll pass on the TSB float. The kitchen coup — how cash shifted the balance of power over household chores.

The inspector calls — and house prices jump. How the Ofsted effect could add thousands to the value of your house or send it sliding. George Osborne's speech in charts. Just stop tampering with pensions, Chancellor.

buy tsb shares

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