Banking giant Barclays (BARC) today reported pretax profit of £2.85bn in the nine months to 30 September. Provisions for PPI and and impairment charges fell more than expected, at 11am the stock was up 3.1%. Today’s announcement will re-assure investors who must have been as depressed as the share price in recent months.
Hello Share Mates: As you probably know, Barclay's Bank (BARC) has launched a massive rights issue. They need loads of cash in reserve, just in case the whole credit crunch thingy happens again.
‘Helloo Balloo’ - to misquote Edward Lear I think - we have landed back in the future! It is Beethoven’s Ode to Joy combined with The Handel’s Hallelujah Chorus and George Formby. An old normality and market convention has been restored to us in Barclay’s Bank (BARC) rights issue; that is to say institutional shareholders providing banking capital again - something that was scarcely thinkable a year ago!
Two seasons have arrived simultaneously: Spring, and the reporting season for Banks. The bank’s first quarter figures have been delivered along with some cheerful late arrived sunshine. In the real world of long delayed warmth and sun, things suddenly seem wonderfully natural and uncomplicated to the average, well adjusted, individual feeding his mossy lawn. Daffodils are daffodils and cherry blossom is cherry blossom. “Oh to be in England…etc.”
There are not many who would deny that it has been a decent price ride for Barclays (BARC) shares since last summer – ironically since we were treated to the Libor scandal that people already seem to have forgotten about.
Because the yield is too low for a bank (in historic terms), Barclays Bank (BARC)shares are clearly viewed by the market as a ‘momentum’ stock; the elementary investment principle being, that because the shares are going up, buy some more?
