Opinion's on RBS Shares 5 yrs from now?

Tinkerbelle1

I'd like to hear everyone's opinion's on RBS shares 5 yrs from now.

Do you think shares will recover in this time?
If so how much do you think they will be in 5 years? This is of course if the bank are not nationalised.

Masomnia

Depends what you mean by recover, I guess. If you mean to previous share prices before the financial crisis began, ie. £4 - 5, then I don't think so.

I wouldn't really want to guess at what the price would be, I'm far too inexperienced, £2 maybe £3 if you're lucky?

Tinkerbelle1

Masomnia wrote: »

Depends what you mean by recover, I guess. If you mean to previous share prices before the financial crisis began, ie. £4 - 5, then I don't think so.

I wouldn't really want to guess at what the price would be, I'm far too inexperienced, £2 maybe £3 if you're lucky?

Yes I think your right no where near the £5 mark, I was thinking maybe around £2 in 5 yrs ?!?!

Masomnia

It may not even be that, now I think about it, there are probably twice as many shares in issue now as there were then. So assuming that stays the same, if the shares become worth £2.50 as things are now, that's the equivalent of £5 before, ie. the bank regaining all of its previous value in five years. Not convinced!

Undoubtedly shares will be bought back by the bank but that's going keep profits/dividends low, and that's going to keep the price down.

Your guess is as good as mine though haha.

byb3

Of course it could always be fully nationalised and then you'd have nothing.

hotkee

I saw a prediction somewhere, target price or the higher end is 115p a share but dont know what the time frame is.

As a small time punt I think its a good gamble - if you look at past downfalls in shares (not on the same scale granted) in 2001, the recovery took about 3 years I think and then you ended up with some unfamiliar names in the ftse 100.

RBS is likely to flog a lot of workforce and assets and that should bolster it in the long run, so in 5 years, I cant see £5 a share being unreasonable.

Citigroup price has gone up in recent months. Barclays (not bailed out) has grown back from somewhere around 25p to 150p (I think).

Nortthern Rock in government hands in 2007, seems to have been repaying the government (well its a fiddle with figures I think) but it looks like its on recovery path at least not losing money like it was. Thats 2 years on and current market cant see it floating back on the stockmarket till recession is over.

Tinkerbelle1

I seen a very similar post on another site, their 'predictions' varied alot they were predicting the shares in 5 yrs to be worth £2.00 - £5.50

Andrew64

The Conservatives are talking about breaking up RBS Group into its component parts if they win the next election. I wonder what that will do to the share price? It's another factor to consider.

Tinkerbelle1

Andrew64 wrote: »

The Conservatives are talking about breaking up RBS Group into its component parts if they win the next election. I wonder what that will do to the share price? It's another factor to consider.

Yeah .......never thought about that

97trophy

Andrew64 wrote: »

The Conservatives are talking about breaking up RBS Group into its component parts if they win the next election.

Any idea (guess) what that mean to the UK business?

mrposhman

Andrew64 wrote: »

The Conservatives are talking about breaking up RBS Group into its component parts if they win the next election. I wonder what that will do to the share price? It's another factor to consider.

What you also have to consider is the fact that if the business isn't in trouble then the tories cannot simply screw the shareholder "just because they want to".

If RBS was to be broken up, then its more than likely going to be led by the competition commission and the government will stay out of funding this with taxpayers funds and the bank may be split into say 2 or 3 and each shareholder will get an equal holding in each of the split companies, so in essence it may actually turn out to be good for shareholders as it could lead to shareholders spreading their risk amongst the banking sectore.