Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, part-nationalized British bank Lloyds Banking Group
With that in mind, let's take a closer look at Lloyds' business and see what CAPS investors are saying about the stock right now.
Lloyds facts
Headquarters (Founded) |
London, U.K. (1985) |
Market Cap |
$25.54 billion |
Industry |
Diversified banks |
Trailing-12-Month Revenue |
$8.3 billion |
Management |
CEO J. Eric Daniels (since 2003) |
Return on Equity (Average, Past 3 Years) |
22.7% |
Competitors |
Barclays |
CAPS Members Bullish on LYG Also Bullish on |
Allied Irish Banks |
CAPS Members Bearish on LYG Also Bearish on |
UBS |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 902 members who have rated Lloyds believe the stock will outperform the S&P 500 going forward. These bulls include mj1139 and All-Star JacobRiis, who is ranked in the top 16% of our community.
Just two weeks ago, mj1139 singled out Lloyds as a bankable bargain: "This is a long term value play, the stock is way off the 52 week high, has a strong balance sheet and will come back as the general world economy improves."
In a pitch from last month, JacobRiis elaborates:
Yes the British government owns 43% of the company and they just made a new issue to avoid an additional government funds. They have a huge upside. They are having to weather the storm of the current financial crisis because of their takeover of HBOS after the strong-arming of the British government. They took over the faltering bank precisely because they had so conservatively and successfully averted financial difficulties. Once they fully integrate the HBOS bad assets and pay off the government, they stand to have significantly increased their share of the British banking market. They expect to restore dividends in 2012. For the patient investor, I think there will be a big payoff down the road.
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