PermanentTSB - Irish BANK

6022tivo

Hello

It is tired and it is late, but was hoping for some info.

Before the crash I took a punt on an Irish bank.
It did not recover and it ended up in my shares portfolio as PermanentTSB???

I have noticed that in the last 6 months, the share is recovering and is now worth something.

However, I have received a letter of my share broker saying I can buy some options, 1 new share for xx amount of what I own.

However I have to act quick, they need written instruction by the 12th, or 16th

http://www.iii.co.uk/news-opinion/reuters/news/235501

Appears to be related to this?

So, in my basic mind, is this worth another punt?? I did similar with Bradford and Bingly shares and lost the lot!

MARTYM8`

I used to visit Ireland a lot for family holidays when I was younger - and remember the Irish Permanent ads (as it was then) on the telly.

"Put a little money in the Irish Permanent watch your savings growing
Put a little money in the Irish Permanent watch your savings grow!":D

The Irish economy is on the up again - for now - but the bank does need to repay a couple of billon euro to the Irish govt by 2018.

So its a bit of a punt!

6022tivo

The letter makes me out to be priviledged to be allowed to purchase them as I own some shares.....

Not sure what to do, it is only a few hundred quid, not thousands..

May just buy what they are offering?

bowlhead99

If they are issuing new shares then they have to allow you to buy some too, to try to keep up your percentage ownership stake in the bank rather than being squeezed out. You can buy one share for each one you hold. They don't have to offer the shares to the man on the street, because frankly that is expensive and they could just get some institutional buyers to come in with €€€ and have fewer people to deal with. They have already done an institutional placing for €400m and now they are just tidying up by letting you and others buy up to €12m of new shares. So in a sense you are 'privileged'. However, if they are not giving away shares at less than they are 'worth' there is no reason to take them up on their kind offer. The people buying in for €400m paid €4.50 a share and you are not getting the chance to buy any cheaper than that.

Presumably you have looked at your entire 'net worth' and seen that you have x% in cash and y% in property and z% in shares, and within the shares component you have a% in PTSB and b% in Company ABC and c% in Investment Funds DEF and RST and so on. If you are happy with a% in PTSB, there is no reason to buy any more.

If you consider all the tens of companies listed in Ireland or couple of thousand listed in UK or 20,000 listed around the world, and the several thousand mixed investment funds which you could put your money into, is there a compelling reason why you would allocate your next pound into PTSB shares? There are several trillion pounds / euros / dollars worth of investible companies out there in the world.

If you think this is the best one, then go ahead. As of today you can sell PTSB shares for €4.80. This changes by the second.