Opinion's on RBS Shares 5 yrs from now?

tradetime

As others, have said there have been numerous shares added to the float, in the form of a rights issue, since they were £5, not sure how many, then there is the fact that government own about 70% ish? which was a separate issue I think via the preference route and converted to common? More dilution, this will all have to be paid back. Then you further have to allow for the fact that banks were able to generate the level of income they had which supported those high share prices by being excessively leveraged, new regulation and oversight will prevent this going forwards, also if we're smart we will not allow banks in the future to grow to a size that is allegedly "too big to fail" So adding all that up, who knows where they'll be in a few years.
They're good for a short term punt if you're timing is good, and there will almost certainly be value in some banks for when this is all over, I just wouldn't want the hassle of trying to work out which ones will represent what value, I don't have the resources to work that out, even the "experts" who analyze banks can't work it out with any certainty, and thus in general I continue to consider them to be a bad risk.

save-a-lot

Giving this thread a bump, I want to find out opinions, made a bit of money with RBS, right time to sell, or hold a little longer?

the_annoyed_customer

save-a-lot wrote: »

Giving this thread a bump, I want to find out opinions, made a bit of money with RBS, right time to sell, or hold a little longer?

Sit tight the general trend at the moment is for the price to rise no matter what happens around it, and since this is meant to be the 'worst' part of the recession I can only see this trend continuing espically since by the end of the year early next year according to the government that we will be out of the recession

Decadent_Fool

Move your stops tight!