Close Brothers Share Discussion Threads

[tsmith2] 21/2/2024 08:52

similar trading pattern to yesterday?

[blueclyde] 21/2/2024 07:35

Much safer? This company is throwing off cash which makes it safer than anyone with its business with includes asset management and brokerage. It's a nonsense it is below 800p on this and when this blows over I will be looking for 1200p plus as the dividends will kick in again.

[babbler] 21/2/2024 07:22

Lol. Hardly touched the sides with that rise and shorts closing...hmmm.

[popit] 21/2/2024 06:05

Probably best to take some profits here after the huge rises yesterday

There are several cheaper and safer banks such as OSB, STB, Halyk, trading at much lower forecast PE levels than CBG, and with far less risk and uncertainty

[tsmith2] 20/2/2024 22:14

We shall find out next day or so

[datait] 20/2/2024 21:59

Another jump in the morning

[davius] 20/2/2024 21:48

It looks that way. I suspect today's rise might partly be Marshall Wace closing out their short too.

[dplewis1] 20/2/2024 20:46

So Millennium have gone from 0.85% short to 0?

[blueclyde] 20/2/2024 19:51

So the very worst case scenario perhaps is now already covered by putting aside this years dividend yet the share price is down so much... it is utterly ridiculous had not seen the Barclays comment. They could easily bid for Close Brothers as it would be a good fit for them them and would be chump change and off set the costs against profits so would be nil cost... I just do not see how this does not fly higher it is an utterly ridiculous situation no doubt made 1000 times worse by the chronic conditions the wider UK markets are in currently. Huge opportunity imo.

[tsmith2] 20/2/2024 19:32

https://www.shorttracker.co.uk/company/GB0007668071/Imagine Marshall will be closing out theremainder of their short in the next couple of days

[tsmith2] 20/2/2024 18:42

it's vulnerable imo

[blueclyde] 20/2/2024 18:41

There is the asset management business and the is the brokerage business along with the standard banking business. Look at Barclays saying the want to return £10 billion to shareholders over the next three years. Awash with cash £400 million market cap here so this issue has taken off £2 billion worth of value.. For me it bounces back or gets taken out.

[suetballs] 20/2/2024 18:26

blueclyde - pretty much my assessment.
I am only surprised that an opportunistic approach hasn't already been made.
Suet

[blueclyde] 20/2/2024 17:49

I can see this back at 800p a share fairly soon. Lloyds Bank results will shed further light on this. This is not an issue specific to this company and from what I see it is debatable if they have done anything much wrong. At the end of the day there is very cash generative businesses in this so if the market does not move back up quickly i think private equity will have a shot at it about 800p as this is a rather unique situation affecting only part of the wider business that was throwing huge dividends off, and will do again once this blows over.

[dplewis1] 20/2/2024 16:34

Large bid in the auction .. going to uncross much higher

[its the oxman] 20/2/2024 15:59

Worth a lot more than 350p imho but likely be a rocky ride.

[davius] 20/2/2024 15:36

If the latest indications are anything to go by, the share price has been hammered way beyond a level even remotely appropriate. 800p down to 600p might have been understandable, sub 300p was absurd.

Tempting as it is to bank a 14% rise in a couple of days, I think I'll hang on for now.

[richie1218] 20/2/2024 15:19

I pinched that link that was posted by hardup1 on the Lloy thread actually but thought you guy's maybe interested. gla

[tsmith2] 20/2/2024 14:52

let's hope it's only the start of one. A decent amount to buy back

[chriss911911] 20/2/2024 14:52

yep, bye bye shorties, was nice whilst it lasted...

[stoopid] 20/2/2024 14:34

Short squeeze??

[dplewis1] 20/2/2024 14:19

Good find richie "Some redress may well be required, but it should be limited to a minority of agreements, and possibly only a small minority, where DiC was used and there is actual evidence of unfair pricing."

[tsmith2] 20/2/2024 11:45

couple of large sells between 10-11 that have now been digested. think we should move nicely

[chriss911911] 20/2/2024 10:37

The whole FCA thing, is unravelling, as is ML, the procedural deficiency which has triggered the FCA probe, is one thing, yes it was wrong/deficient of that it is clear, but so what, you still need to prove you suffered a meaningful loss, so will not get meaningful compensation or any if that is not clear.

Unpicking some examples, where broker fees were high, it's a mix of many things, over allowance, car price, and credit standing and in the end was the deal a bad one v market price where there was no such structure. In most cases I would expect arguably it was not an un-competitive deal, so there is no loss to compensate, I don't see how you can load a car deal meaningfully, with info at disposal to consumers, also the range of answers makes it hard to say it was not "at market".

Mostly all finance deals for car are priced so tightly together, getting a car is about choice, the price, no matter where or how you shop is very similar, its ultra competitive, just a procedural issue is what we are hanging on here, fuelled by the emotional energy of ML, but perhaps not by the maths. In the end if consumer has not lost much if anything, compensation is not appropriate that much is certain.

So, I conclude the numbers put forward by analysts are at worst the top loss possible, but unlikely to materialise, any claim will be now manageable, and could well see dividends return next year or perhaps sooner before end of year. I think these things will run on a long time they usually do. And no doubt it might be dumpy ride, but, but if it is good enough for RLA to put in 5%, it helps to support the change in opinion to reflect new info.

I think balance of probability is FCA claim being far away from the rather colourful numbers being previously suggested by analysts, which has inevitably caused panic, selling, at least there is now panic buying to balance that up a bit, wonder how long the shorts will hold their nerve, a day, a week ? either way they have made a good turn at the expense of others, lets hope they keep them in a bit longer !