northern rock shares

ReportInvestor

I'm not a stock broker bebop, nor could I advise on here if I was. I hope the information I've given is helpful, but you've got to make up your own mind.

It is currently bank reporting season, so keep an eye out for analyst views in the weekend press.

Check out these links for more information

Alliance & Leicester earnings expected to fall, and brokers have been relatively negative but the share price has risen strongly

Northern Rock's earnings are expected to grow and the brokers remain reasonably happy with the stock, hence its higher valuation and lower yield compared to A&L

Amid rumours of bid activity and sector consolidation there is also an element of gambling at the moment. Take this for example:

The Telegraph about Friday's crazy day that saw a 10% rise in NR shares then a 5% decline from the peak

".....Northern Rock made no announcement to the stock market about its share price movement, but among all the fuss, issued a statement on director's share dealings.

Director Sir George Russell was revealed to have sold 30,150 shares on Thursday at £10.95½ each - which he would not have been able to do if the bank were in discussions with B&B....."

For steady_eddie

Times link - Brokers consider B&B to be no better than a weak hold

EdInvestor

A third, rather more amusing theory was that short positions in Northern Rock were popped after a hedge fund manager, in reaction to the Lonmin bid, went long on the stock in the mistaken belief that it was a miner.

ROTFLMAO

Wonder how that one slipped past the man with the blue pencil ( no jokes in stockmarket reports, money is serious you know )

There's a rather good article in the Times today about how buying shares that pay good divis and then reinvesting the divis is the best way of investing for young and old .Couldn't agree more.

People who have lots of bank shares that pay good divis could consider adding on shares from other sectors so their portfolio is more balanced though.Utilities are a good spot to look, and retail shares have good divis at present. So do our old freinds the telecom stocks. Insurance companies are another area and booze and fags are always worth checking.

Try this spreadsheet for a good overview:

https://www.fundies.info

equitydealer

There are always stock market rumours, many banks have been highlighted as potential takeover targets recently

Barclays - by Citigroup
RBS - by Citigroup
Lloyds TSB - by so many you can list them here
B&B - Various
Northern Rock - just joined the party but has been linked with others in the past
A&L - Various

I think that covers almost every bank! Only HBOS sticks out as one that has not been singled out, but that's because it was involved in a merger with BoS.

My personal opinion is that the big four will not be taken over because they all have various significant issues. The ones that may get an approach are the former building societies. Abbey and Woolwich are great examples.

All speculation, but that's the fun of share dealing!

ReportInvestor

Monday am update:

Brokers have dismissed the merger talk. NR shares have fallen back 2% to 1128p.

Two brokers have downgraded the shares (one to "sell" another to "in line" ) because of the recent steep rise in the share price.

ReportInvestor

Alliance & Leicester rated a buy in the Times after useful results

Scroll down to the bottom of the article.

But the Independent advises the "smarter investor" to sell the Alliance & Leicester

By my observation, Tempus in the Times (Robert Cole) has the edge based on past predictions.