Friday, April 29, 2011

Barclays Bank PLC ADR 2

I bought this bank (NYSE-BCS) in April 2000. It was doing quite well earning a total return of 15% per year in US$ until it started to fall apart at the end of 2007. They cut out the dividend in the first part of 2009 and restore a much smaller dividend at the very end of that year. To date, I have earned a total return of 3.5% on this stock in US$.

I must admit that I have a much harder time finding information on US and other foreign stock than for Canadian stock. Maybe this is because I follow so few non-Canadian stocks. However, a number of sites say that there have been no insider transactions over the past 6 months. Also, apparently insiders own some 10.5% of the outstanding shares.

When I look at 5 year median Price/Earnings Ratios, I get one of 7.53 for the 5 year low and one of 11.68 for the 5 year high. The current one of 9.03 would be close to the 5 year median average of 9.61. I get a Graham Price of $35.66US for 2011 and the current stock price of $19.68US is some 44% lower. Even though the difference between the Graham Price and low Stock price has been 27% on average over the past 10 years, the difference between these two values has recently been higher.

I get a 10 year median Price/Book Value Ratio 1.90 and a current one of 0.63. The current one of 0.63 is some 38% lower than the 10 year median and this show a good current stock price. However, note that the 5 year average P/B Ratio is just 0.67 because this ratio has been low lately.

The current yield on this stock is 3.3%. This stock has a 5 year median yield 4 %. Considering that the dividends were decreased by some 97% in 2009, this is probably not a bad yield for this stock. The dividends, of course, have been increasing lately by substantial amounts.

When I look at analysts recommendations, what I find are some Strong Buy and Hold recommendations. (See my site for information on analyst ratings.) The consensus recommendations would be a Buy. There seems to be a divergence of opinion. Analysts giving Hold recommendations give a 12 month stock price of $22US and those with Strong Buy give a 12 month stock price of $32.32US. I have also noticed that EPS estimates have recently come down for 2011; but they have gone up for 2012.

I found one site talking about Barclays Bank at Financial 8. Also,
Vivalabolsa says Barclays has upside potential to $32.32 over 12 months. See page bottom for remarks on this bank and other banks.

For the present, I will be keeping this stock. However, I am keeping an eye on it.

This is a bank. Barclays is a global financial services provider, engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services all over the world. Its web site is here Barclays. See my spreadsheet at bcs.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.

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