LYG Lloyds Banking Group plc - ADR

$LYG so the latest news is there is a proposal to pause a moratorium on the use of Deferred Tax Assets for 5 years. This has some momentum. This will allow the banks to not be taxed at a higher percentage rate. It may hit underlying profit a bit but nothing extreme like increasing the percentage being taxed on banks. LYG may take a bit of hit on price still just depending on market reaction and what else is going on in the world. Oil Supply disruptions from ongoing worldwide hostilities will probably be a bigger catalyst for a stock price drop. Still Long. There is no reason to sell ...only to buy more at a cheaper price if it is offered.

$LYG The long thesis I have with this stock involves its share repurchase program and its dividend. IMO the price of the stock matters little as long as the share repurchase program of the dividend are not cut. The short-term news story of the UK government raising taxes on banks matters to the price of the stock. If the UK government taxes banks more heavily the price of the stock might fall drastically..presenting a huge buying opportunity. If the UK government keeps taxes steady or only increases taxes marginally then the stock is likely to move up. At this point we are at a greater than 10 percent pull back from 52 week highs making any small purchase a nominal risk. If you are day trading...good luck because it could trade in either direction really fast just on a misstatement alone. I recommend keeping purchases small at this point and increase your long positions in cash.

$LYG today the Bank of England warned of potential market correction and impacts from ongoing Iran hostilities. The Macro environment is in charge, but this does not mean you have to panic. I am a long term holder of the stock and will add more if dividend yield crosses 4.5 percent. Obviously, if I think it will go lower I may hold off for even better pricing. The bank is still buying back stock and paying a dividend with further repurchases and dividend increases going forward.