Northern Rock - Shares [Merged Threads]

convict90210

**Board Guide Note**

Multiple Threads discussing Northern Rock Shares merged into this thread

---

Just bought £750 worth of NR shares late this afternoon. Is this a good recovery play folks??

benood

Snap - risky, falling knives etc, but worth a punt assuming the chancellor, FSA and BOE aren't lying that fundamentally NR's business is sound but suffering from the credit crunch.

gingababe

What are the share prices at the moment then ??

Thanks
Ginga

[Deleted User]

Poorly risk assessed gamble. Either the share price will stabilize maybe with a slight rise next week or it will continue to fall. Either way you aint gonna make any money, you get me Youd be better off putting the money on a throw of pitch and toss. If people are thinking itll be forgotten about next week and teh price will recover to 12 quid, then theyll be in for a right shock and they really havent got a clue.

Mark my words and we shall reconvene next week. Plus this thread, should be on the merged thread, what makes you so special

convict90210

I know I have caught a falling knife but paid 440p per share late in the day. Of course its a gamble but hoping for a 10% rise in the short term as the sell off today was excessive...

purch

I guess that question can't be answered until you can put a realistic valuation on the business as it now stands.

If Northern Rock continues to have to pay close to 7% for it's funds then it is hard to see how they can make anything like the profits they have previously made, or were forecasting for this and next year.

The business is fundamentally sound, except for one thing, which is the way it has to raise funds, which leaves it at the mercy of the markets, and currently the markets are against them.

They will be a takeover target, especially the more profitable parts of their lending book, so in the medium term the shares could be attractive

dunstonh

Possibly a good call. They are certainly ripe for a takeover and a rally on price is quite possible for a gain. Monday will be an interesting time for the share.

They certainly look value now when you look at the value of the shares against the underlying assets and liabilities of the company.

benood

A P/E about 5 on their revised 2007 forecasts (which did have a few caveats both up and down) was cheap enough for me. You got yours for 2p less than me convict! Will you sell at 490 or end up holding on?

ramborai1987

ive bought some and might buy more monday morning.

looks like we aint the only ones tho:

hxxp://www.lse.co.uk/ShareTrades.asp?shareprice=NRK&share=nthnrock

ManAtHome

Problem is we don't know the quality of their loans - bit like buying a high-street shop complete with stock, is it good stuff or should it have to Oxfam years ago.

Not getting into the real "sub-prime" stuff they were pimping on commission for Lehmans, but they did have a fair bit of 100% LTV, and I don't know how much of their fixed-rate stuff was being subbed with short-term cash which spiked from base rate plus 0.3% to plus 1.2%

Lorian

convict90210 wrote: »

I know I have caught a falling knife but paid 440p per share late in the day. Of course its a gamble but hoping for a 10% rise in the short term as the sell off today was excessive...

Risking £750 for a possible £75 profit less dealing charges?