August 23, 2014

Should I buy TSB shares in the TSB IPO? Users talk

Investoo Forum members have been discussing the potential pros and cons of buying TSB shares as part of the TSB IPO. Registered member McVittieJ commenced the thread, putting together his views as follows:

Good
+ They are offering free shares if you keep hold of them for a year. So long as price doesn’t fall below 5%, then still technically making a gain for the year!
+ It’ll still be owned by Lloyds, one of the best performing banks on the stock market since recession.
+ At the moment, doesn’t look like it’ll have many skeletons, like PPI because it has an indemnity from Lloyds.
+ It’s a challenger bank, so aiming for solid growth.

Bad
- It’s still going to be classed as a bank, this is still quite volatile sector!
- These are the branches that Lloyds failed to sell to the Co-op, are they geared up to please the markets?
- The IPO market is pretty dire at the moment. Highly unlikely there will be any quick gains with this one.

Overall, think it’s worth a punt because of the free shares on offer after a year. Although that could change once prospectus has been issued.”

Within the thread, the user has asked for other Investoo forum members to share their views. Registering at Investoo is free and takes less than one minute to complete.

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