Close Brothers Share Discussion Threads

[chriss911911] 30/10/2024 12:05

Regardless if they have the cash or not, any cash belongs to someone, what matters is net equity, relative to risk assets (or more appropriately title assets that are now more like liabilities, at least some risk assets will have negative value. What is left belongs to shareholders in the end, but that could be a net obligation.

When they need most of the equity to meet regulator, with 0.4bn equity out the door, what does that do to tier one, I make it just over 200 basis points worse, so sailing close to the wind, it's a bit pointless to park more cash, reduce risk assets is the only way (if they can but who would buy contaminated assets?) or equity raise. they have stopped writing motor business helps to avoid adding to problem, a bit, but other business i assume they are still doing.

Last weeks case was not even FCA relevant, a new immediate issue, not a past issue, but only amplifies and worsens the past issue just to really make sure this is a right old problem, as it sets a very uncomfortable precedent for the FCA. This is not going to end well, there is a reason the share keeps falling, it's hard now to put any value on equity.

[blackhorse23] 30/10/2024 10:48

I have bought VANQ bank after they set aside money, I will do the same here after they set aside money but question is how they do it ? Equity rise or from their own cash? 400m is overcharge so legal cost , interest and related other cost they will be needed between 800m to 1 billion

[blackhorse23] 30/10/2024 09:38

Once they set aside full compensation money including charges (estimated over 500 m) then yes share price will be established. Eg vanquish bank , VANQ set aside 130m , car finance claim est only 30m , they have set aside 4 times more to cover everything , if not use then money back to balance sheet . Now going forward they will make profit but last year they declared loss

[diku] 30/10/2024 09:20

If I remember correctly during the financial crisis Natwest chairman said no RI...and soon the RI came...

[chriss911911] 30/10/2024 09:17

Lloyds put away 0.4bn and some analyst suggest now 2bn to 3.5bn, so could be out by 5x to 8x, Close matched what Lloyds did months later (including a sales) put away, 0.4bn and have just parked as cash - why because they imagine they don't have similar risks ? so management have behaved as if they have 100% relative exposure to Lloyds.

Now it's worse, as they think perhaps also business in 2020 and beyond is an issue going further than FCA investigation so suspend motor finance also. the share price chart looks like a black ski run on the Austrian alps, incoming deeply discounted rights issue if things don't improve, if you buy now, your buying into a problem which is growing, which is causing the price to fall consistently.

As for likely price, pick any number, no idea at this stage, it's wait for the next big news and try to make sense of it, and could mean this is in the penny share areana come spring, which would not make it any cheaper to buy in real terms as your buying into a big problem.

[blackhorse23] 30/10/2024 09:08

I am doing deep research on this stock, and following this stock where it goes! bad news like , lost in high court appeal, no dividend, set aside 500 million, fall into loss etc WHICH IS SHORTERS FAVOURITE CHAPTER

[karv1] 30/10/2024 09:01

True I sold at 450 and at the time I was gutted when it was 500 to 540ish.
Your views naturally change from positive to negative and back depending on if you hold or not, maybe it because we pick the information to believe that's fits our positions, it is just human nature.
On a side note most trades are done by the AI,s humans count I think for a tiny percentage of trades yet the price keep dropping why are these auto trades not mass buying after all the stop losses have been sucked up from this bargain stock they must be calculating a large risk.

[blackhorse23] 30/10/2024 08:48

It's going that direction , looks like drop below 200p , it's shorters favourite stock now. More Bad news on the way

[datait] 30/10/2024 08:43

Lol kar1 your only saying that cause you sold lol understandable if you have a squeeky bum

[datait] 30/10/2024 08:42

If you are in at under £3 its only a bit of turbulance will be back up soon enough.

Brilliant if you can get in now.

[karv1] 30/10/2024 08:42

Below 200p in 2 weeks time A week ago, I would of said was pure fantasy.
Now i am thinking it is possible.
In 2015 they had 300k of motor customers at a guess the way the motor market expanded around 400k+ and maybe even 500k by 2021 you could argue 500k to 700k of customers by todays date.
Returning 500k to 700k of customers commissions plus 8% interest not even counting the earlier higher interest rate, that they might have to repay back from any FCA review.
2007 to 2021 400k to 500k x commission's + 8% interest per year + over paid interest = and from
2021 to few days ago extra 200k to 300k of commissions + interest = numbers that 400m would hardly made a dent into.
Yet the analyst seem to come to a far lower number if they are correct this is a bargain of a life time.

[datait] 30/10/2024 08:40

They are doing just fine brilliant in wealth management

[tomboyb] 30/10/2024 08:38

Bought higher up -

A few trades -

No more for me but lets see where this goes -

[datait] 30/10/2024 08:32

Them that sold will be left kicking themselves its a spring board from here crazy not to be buying at these prices. Have a friend who works for close brothers he even said few of the staff are buying big.

[datait] 30/10/2024 08:27

Fill your boots and big knickers

[datait] 30/10/2024 08:27

I see this zip up over £3 soon enough certainly not going to go much lower if at all.

[datait] 30/10/2024 08:24

Its well overdone and we wont hear anything about it until next May always someone has to scare others just to get in cheaply hahaha

[datait] 30/10/2024 08:15

Over done ya fanny

[blackhorse23] 29/10/2024 23:42

Below 200p in 2 weeks time

[blackhorse23] 29/10/2024 19:28

https://www.autoexpress.co.uk/consumer-news/364820/court-decision-car-finance-commission-threatens-huge-compensation-bills

[sbb1x] 29/10/2024 15:51

Double bottom in

[blackhorse23] 29/10/2024 14:44

Non stop dropping

[diku] 29/10/2024 14:08

CURYman...you are classic...