first_img3 reasons why I think the Barclays share price is set to climb Alan Oscroft | Friday, 30th October, 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. If you’d invested in Barclays (LSE: BARC) at the start of 2020, you’d be 40% down now, as the banks have been battered by the Covid-19 crisis. The longer term is not much better, with the Barclays share price down 55% in five years. But I think the current short-term market view of the FTSE 100‘s banks is a mistake. I reckon the whole sector, and Barclays in particular, should look a lot better this time next year. Here are three reasons why I’d buy now.Liquidity is as healthy than everThe Barclays share price suggest the bank is struggling. But if it is, it’s not showing in the balance sheet. The Bank of England’s annual stress tests have been suspended for the current year. Who needs to put the banks through simulated stress when they’re in the middle of the real thing, right?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…But at Q3 time, things looked just fine to me. Barclays’ CET1 ratio, which is its key stress test measure, had actually improved since before Covid-19 arrived. At 14.6% at 30 September, it’s up on December’s figure of 13.8%.Credit impairment charges did rise to £4.3bn (from £1.4bn a year previously), but the banks seems to have that covered well enough. And we’re looking at a tangible net asset value per share or 275p. That’s approximately 2.6 times the current share price, and up on last year.2021 forecasts are strong and improvingYou might not guess it from the recent Barclays share price performance, but forecasts are pretty upbeat right now. Well, for 2021 at least. In the current year, analysts expect EPS to fall around 60%, which isn’t great. But that would still represent a pre-tax profit of more than £2bn, which I think would be a good result in an allegedly disastrous year for banks.On that alone, a forward P/E of 21 might not make Barclays a screaming buy. But forecasts suggest EPS in 2021 will return very close to 2019 levels, which would drop the P/E to only around nine.I know forecasts are far from certain, especially this year. But analysts have been gradually raising their predictions as the year progresses. The consensus looks convincingly positive to me.Dividend should boost the Barclays share priceThe Prudential Regulation Authority stepped in this year to bring a halt to bank dividends. It’s arguable whether the regulatory body should have interfered in a free market — though the free market did lead to the banking crisis not so long ago. But anyway, whatever else happened, the suspension of 2020 dividends will surely have contributed to the fall in the Barclays share price.Dividends will resume, for sure. The question is when and how much? Again, analysts have a recovery to pre-pandemic levels penciled in for 2021. And, on the current Barclays share price, we’d be looking at a yield of 4.4%. It would be more than 2.5 times covered by earnings too.The 2020 dividend cut will surely have no adverse long-term effect. And I reckon it’s helped provide investors with an even better buying opportunity this year. Simply click below to discover how you can take advantage of this. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Enter Your Email Address Alan Oscroft 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.center_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. 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. 5 Stocks For Trying To Build Wealth After 50 Click here to claim your free copy of this special investing report now! See all posts by Alan Oscroftlast_img read more

first_img Farmers Called to Act on Statehouse Legislation Bob KraftAs the short session of the Indiana General Assembly winds down, several key pieces of legislation that will impact farmers are in need of action. Indiana Farm Bureau is calling on its members to lobby lawmakers on two key issues: farmland assessment and inheritance taxes.  The State Department of Local Government Finance has released new regulations on the assessment of farmland that take into account soil fertility factors. These new regulations were announced just a few weeks before assessment was to begin.  “The bottom line is that this would increase assessment by as much as 60% in some cases,” says Bob Kraft with Indiana Farm Bureau.  Legislators in both houses are upset with the last minute revisions.  In the Senate Appropriations Committee on Thursday, Sen. Brandt Hershman (R-Buck Creek) offered an amendment to HB 1190 (Rep. Suzanne Crouch, R-Evansville & Sen. Hershman) that will delay the effective date of the new DLGF rules by a year.  House Ways & Means Committee Chairman Jeff Espich has indicated that he expects a similar amendment on a Senate bill in his committee. Kraft is urging farmers to contact lawmakers to express support for a delay in the implementation of the new rules. Another issue requires farmer support is efforts to eliminate the Indiana inheritance tax. On Thursday in the House Ways & Means Committee, Rep. Eric Turner (R-Cicero) presented SB 293 rather than the author, Sen. Jim Smith (R-Charlestown).  SB 293 includes changes to the exemptions in the inheritance tax law and contains phase-down language.  As the bill left the Senate, it does not completely eliminate the inheritance tax.  Farm Bureau’s Katrina Hall testified in favor of the bill, noting how dramatically IFB members are affected by inheritance tax and stressed preference for the complete elimination language that is included in HB 1199, authored by Rep. Eric Turner (R-Cicero).  HB 1199 phases-out the inheritance tax over 10 years starting two years from now.  HB 1199 has not yet been scheduled for a hearing in the Senate. Kraft is urging Farm Bureau members to lobby lawmakers for the elimination of the tax. SHARE SHARE By Gary Truitt – Feb 21, 2012 Kraft said IFB is also seeking farmer support for legislation that would prevent cities and towns from having jurisdiction over aquifers.  The House Utilities Committee heard testimony on SB 132 (Sen. Beverly Gard, R-Greenfield & Rep. Dave Wolkins, R-Winona Lake).  The bill will require the Indiana Utility Regulatory Commission to collect, compile, and publicize in the aggregate data regarding water use by water utilities in Indiana.  The controversial portion of the bill is a section that would exclude underground aquifers from the definition of “watercourse” as that term is used in several statutes that give cities and towns the authority to regulate “watercourses” ten miles outside their municipal boundaries.  A Supreme Court decision last fall concluded that municipalities had the authority to regulate aquifers.  This means that a town could require a farmer to obtain a permit to pump water from the aquifer with a well on the farmer’s property, or they could prohibit the withdrawal of water altogether.  It could also set up a race among municipalities that are within ten miles of one another to claim the aquifer first.  Farm Bureau is one of the strongest voices calling for the legislative reversal of the Supreme Court’s decision to include aquifers in the definition of “watercourse.” At the hearing last Wednesday, Farm Bureau’s Justin Schneider testified in support of the bill.  The Indiana Association of Cities & Towns and several mayors testified against reversing the Supreme Court’s decision.  Following a lengthy hearing, Committee Chair Jack Lutz (R-Anderson) decided not to take a vote on the bill but announced that a vote would be taken this week.  Legislators are being asked by the mayors of the municipalities in their districts to vote against SB 132.  All legislators need to hear from their constituents who support the bill.center_img Home News Feed Farmers Called to Act on Statehouse Legislation [audio:|titles=Farmers Called to Act on Statehouse Legislation]Audio Player Up/Down Arrow keys to increase or decrease volume.Podcast: Play in new window | Download | EmbedSubscribe: RSS Facebook Twitter Facebook Twitter Previous articleCautions Offered For PlantingNext articlePossible Stumbling Blocks for KORUS Gary Truittlast_img read more