The seven best value buys in 2018
By Kristen McGachey, 12 Jan 18
Predicting higher volatility and lower asset class correlation this year, Canaccord Genuity Wealth Management’s Simon McGarry believes there will be plenty of “canny investment opportunities” He shares his seven best value stock buys with Portfolio Adviser.
The UK’s biggest retail bank has come along way since the aftermath of the global financial crisis, noted McGarry, miraculously emerging as “a low-risk bank with 95% of its assets domestically based”.
Thanks to the massive restructuring efforts spearheaded by CEO Antόnio Horta Osόrio, the bank is now free from the shackles of government ownership last year , resumed paying a dividend in 2015 after a six-year hiatus and announced a special dividend of 0.5p per share last year.
“With Brexit looming, we believe Lloyds can weather any short-term volatility,” he explained.
“The acquisition of MBNA’s £7bn credit card book from BoA looks sensible – overnight this brings its market share in UK credit cards from 15% to 26%, just behind Barclaycard.
“PPI refuses to go away, but investors took comfort from its third quarter 2017 results when no additional provision was required. With the August 2019 PPI cut-off date now firmly in place, the market should soon start to value Lloyds on its ability to generate and return capital to shareholders.”