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Barclays: Is the yield and asset backing real?

Tom Winnifrith
Sunday 8 July 2012

A few folks seem to think that my Barclays bearishness is wrong and that this stock is as cheap as chips. Presumably that would be chips from the Casino that is Barclays Capital. We shall see what happens to the share price on a one year view. But to counter the points of the stock market optimists, I offer up a few more thoughts.

The bull thesis is that Barclays trades on a PE of 7, yields 3.75% and has a net asset value of £3.50 per share upwards and that it should thus be bought because all the hoo-hah about rate fixing, Bankster Bob Diamond etc means that the stock is oversold relative to fundamentals. I know this to be the view of the bear raider Evil Knievil and others who are not daft but I disagree.

on ADVFN | Comments
About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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