Could the Barclays share price double in a stock market recovery?

first_img Roland Head | Wednesday, 22nd July, 2020 | More on: BARC I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Could the Barclays share price double in a stock market recovery? Image source: Getty Images. center_img Simply click below to discover how you can take advantage of this. Should we be buying shares in Barclays (LSE: BARC) ahead of a market recovery? Barclays’ share price crashed hard in March, but has outpaced the FTSE 100 over the last three months. This suggests that some investors believe the shares could be too cheap to ignore.The bank certainly faces some challenges, but Barclays’ first-quarter results looked solid to me. I think the bank’s shares probably are cheap at current levels.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A massive discountBarclays’ stock has risen by more than 30% over the last three months, compared to a gain of less than 10% for the FTSE 100. Investors who caught the stock’s 80p low in April are already up by 50%. But I think there could be more to come.At a last-seen share price of around 120p, Barclays’ shares are trading at a 58% discount to their tangible net asset value of 284p per share.It’s pretty rare for a profitable and privately-owned bank to be trading so cheaply. A more normal valuation for a healthy bank would probably be roughly in line with its book value. If Barclays’ share price returns to that levels, anyone buying at current levels could see a 135% gain.Is Barclays going under?We have to ask why the shares are so cheap. Is Barclays heading for serious financial trouble? I don’t think so. The bank’s balance sheet looks a lot stronger to me than it did a few years ago. It’s certainly much stronger than it was ahead of the 2008 financial crisis.Barclays has been in business for more than 300 years and while it’s not perfect, I’m pretty sure it’ll survive and prosper in the future. I think the problem with the bank’s shares lies elsewhere. Let me explain.Why is Barclays’ share price so low?According to the bank’s first-quarter accounts, Barclays’ tangible shareholder equity is worth about £47bn. That represents the surplus value of the bank’s assets that would be available to shareholders, after subtracting the bank’s liabilities.Given this, you might wonder why the market is valuing Barclays’ shares at just £20bn. I think there are two likely answers to this question. One is that a decade of ultra-low interest rates means big UK banks just aren’t very profitable today. Barclays’ 2019 return on tangible equity — a key measure of profit — was just 5.3%.The second problem is potentially more serious. Without going into too much detail, my sums suggest that if the value of Barclays’ outstanding loans fell by 5%, the bank’s net asset value per share could fall from 284p to around 200p.With a major global recession potentially looming, it’s easy to see why investors might be nervous about bidding Barclays’ share price too high.Buy, sell, or hold Barclays shares?Despite my concerns, I don’t expect the bank’s equity to be wiped out by loan losses. For a long-term investor, I think that Barclays’ shares probably are a good buy at the moment.The main risk I can see is that the bank’s Covid-19 recovery could be longer and slower than expected. The shares could stay cheap for several years. So, although I rate the shares as a buy, I also think there are more exciting choices available elsewhere. Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Roland Headlast_img read more

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The Good Exchange announces £8.5m to charitable causes in first two years

first_img  290 total views,  2 views today The Good Exchange has now dispersed a total of £8.5 million to charitable causes, it has announced on its second anniversary.The not-for-profit online matching platform has seen a 76% year-on-year growth in grants and a 26% rise in donations made via its platform, with new applicants also up by 75%.  Visitors to its site have also risen 76%.The Good Exchange platform went live on 1 September 2016 and matches charitable local projects with funding from grant makers, donors and fundraisers. It replaced findmeagrant.org, which was Greenham Common Trust’s web platform, and is wholly owned by the Trust. It saw £4.7m distributed to good causes in its first year.In the last 12 months, The Good Exchange has also been shortlisted for two awards: the most innovative cloud product or service in the Computing Cloud Excellence Awards and The Newbury Weekly News Best in Business Awards.It has also launched a new website, helping to drive 76% growth in visitors to the platform along with a new YouTube channel, which offers help on a range of subjects from social media training to best practice case studies.Ed Gairdner, COO of The Good Exchange, said:“We’ve been proud to support many varied and excellent fundraising projects and the growing number of grant givers who see the huge benefits of collaborative funding on our platform this year, and are thrilled to report such significant rates of growth.“Our charity-owned status ensures that everything we do is always in the best interests of the charitable sector and this is reflected in the feedback we’re receiving on our platform. It’s encouraging to hear how it’s making a real difference to charitable projects, helping to close the funding gap and boosting collaboration between funders and fundraisers.” Melanie May | 20 September 2018 | News  291 total views,  3 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis7 Advertisement Tagged with: Funding Technology The Good Exchange announces £8.5m to charitable causes in first two years AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis7 About Melanie May Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via www.thepurplepim.com.last_img read more

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