I have shares in the banks

happywarmgun

Yant1 wrote: »

Pish are they extraordinary times, theres a bubble every 5-7 years, tulips anyone.
:rotfl:

I think these *are* extraordinary times.... you are of course right there are bubbles every decade (everyone on here will surely be old enough to remember the dot com bubble, the last asia bust, the property bust of the early 90s and the 87 'crash'.) - All very cyclical and always blindingly obvious with hindsight.

What is different here is that the bubble isn't tulips, or property, or high tec promises of jam tommorow that are vanishing - it is the banks themselves!

This is another bubble. But it IS also extraordinary.

sabretoothtigger

We hope they are not extraordinary times just normal stupid hyperactive economy which will correct itself, it was nearly something else but with luck we'll never know what would have happened

ad44downey

ExBanker wrote: »

Incorrect IMO- I was in at RBS at £1.50.. but managed to average down to just 90p. Then they hit £1.15 and a i sold at a profit. Had i not averaged down i could be waiting a long time for them to hit £1.50 and break even!

Your averaging down strategy wouldn't have done you much good in the cases of Northern Rock and Bradford and Bingley. It looks like a case of throwing good money after bad in many instances.

Quasar

Well I have 208 Barclays shares. received when Barclays bought the Woolwich as I had a small savings account with the latter. A year ago Barclays share hit £7 and over, while the other day when I looked they were £2.40. My October dividend was half of that from the same time last year.

Still, the way I see it is that it was all a windfall and I saved all the dividends over the years so that I feel I've had a nice free lunch while it lasted.

I won't sell the shares - if they go up again great, if not that's fine too as it's not a lot of money, so I don't rely on it to plan my savings.

sabretoothtigger

So long as he sold before they went under he is ok and Ive read people did that with NR, bought on the friday for 60p and sold on the monday for 90p, a month later they were 0p
Obviously risky, its not free money


I noticed woolwich are advertising a base tracker mortgage, looks competitive

iziizi

KorkyKat wrote: »

Wait until Tuesday. My gut feeling would be to hold.

Some clever insider posted a few weeks ago that the best time to buy would be the second or third week of October. Lo and behold, last Friday after the Lehman auction the stock shot down. Time to buy.

It's your money but ask yourself are they really going to vanish?

If you are awake late see what is happening in the Far East Markets and the Dow, that should give you an idea of how all the markets have responded to the various initiatives.

Good Luck

I would like to know who the clever insider was! I bought RBS at 70p this morning, ended up closing 85p.

I am new to share dealing, and only have beer money to throw at it, but was wondering if anyone else had any tips? I could put up another £250, is it worth it? If so should I choose another bank to invest in?

I am talking for the long hall here rather than a quid few quid. I do see it as banks have to be fairly safe now and if they were to go under I would have more to worry about than the £500 quid I just lost - thoughts?

sabretoothtigger

The share offer is for 65p and the closing price today was 84.5p which means you get 30% profit on the money you invest in theory at least.
In practice they are issuing so many new shares (more then 100%) it is going to swamp the market if everyone sells straight away and that would return the price to 65p I guess, still looks good

Fund managers are apparently going to buy up alot of these shares, right now it reminds me of an ipo. No doubt they'll be some bad news along shortly

gozomark

if the share price is 85p with rights, and the rights are priced at 65p, then the price will fall to 70-75p, all else being equal, once they go ex-rights

iziizi

sabretoothtigger wrote: »

The share offer is for 65p and the closing price today was 84.5p which means you get 30% profit on the money you invest in theory at least.
In practice they are issuing so many new shares (more then 100%) it is going to swamp the market if everyone sells straight away and that would return the price to 65p I guess, still looks good

Fund managers are apparently going to buy up alot of these shares, right now it reminds me of an ipo. No doubt they'll be some bad news along shortly

Sorry tigger, could you explain this in slightly more layman terms!? When will they issue 100% more new shares? Also what does share offer mean?

Sorry for highly noob-esk questions.

ianmr65

Warren buffet, said in the sunday times i think, that buying stocks in major, solid companies now was a good idea. That regardless of any further rises and falls, over the next couple years returns would be good.
Then again he's got huge amounts of cash, and will die a rich man.

The global banking bailout has been an attempt to prevent a depression, and to ensure stability in the sector, and to shore up the sector as a bedrock for the turmoil to come in the global economy; Not to re-ssurect the housing markets, nor to prevent the recession.
RBS HBOS LLoyds are part nationalised anyway so in theory more secure

on all these counts, as long as the bail out works, and the banks are not fully nationalised, i expect that the banking shares will recover in value over the long term.

Having said this if the bail out fails.....well that possibillity dosen't really bear thinking about....