Rbs shares to sell or not?

hails14

Hi all,

I bought rbs shares when they were at 22p and today they are at 2.20 because of a share consolidation is this the time to sell or do you think they will go higher?

Thanks

Rafter

Very difficult to say!

You have effectively bought at 220p because 10 of your old shares now equal one new share.

So if you sell today, you will make a loss as a result of transaction costs and stamp duty.

As to whether RBS shares will rise, it really depends on the performance of its loans and the economies in which it operates.

If it is only one of your portfolio of investments it might be worth holding it - at least you didn't buy your shares at 50p or whatever the UK government paid!

If you think you can get a better return from a different investment or share, then you shouldn't use the fact that you will make a small loss selling them stop you.

R.