Northern Rock - Shares [Merged Threads]

ben500

Surely this is a boom or bust investment? excuse me but I am but a layman here, I would have thought these shares would return to value or blow to dust if the current forced rush on the bank continues? Someone help me I'm thinking out loud.

ben500

ManAtHome wrote: »

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%

I have a pain in in the front left hand side of my head from reading this post.

alared

When these shares reach £3 (which they will) then MAYBE it`s a good call.

Don`t forget a statements coming on 1st Oct and it ain`t going to be good news.

300p here we come.

convict90210

If the shares rise sharply next week then I would look to sell but I still feel their business is hugely undervalued based on the sharp falls over the last month. I know a few comments on here suggest a takeover could be on the card but what about the anti-competition laws? Could this be block if a UK bank was in the wings?

convict90210

P.S. Saw there were some big buys going through today..£25m +

comping_cat

If i had some spare cash, i wouldve bought some.

They had a financial lady on Sky News this evening, saying people really shouldnt be panicking about all this, Northern Rock are now in a better position than the other banks and building societies, as their income is now guarenteed by the Bank of England, all others (well the majority, im not sure who else borrows like the NR) are still reliant on the savers money they use to lend, NR do not!!!

Yes, the share price is low, and might go lower, but if you are in no hurry to make your money back/profit, it will (well, i supose nothing is 100% but i would be surprised if it didnt) recover, and should def go higher than what you bought at - if it does get taken over, the share price on the day of the takeover normally jumps, even if it doesnt stay higher, so you could sell and profit then.

Save4ArainyDay

My feeling is there will be more queues outside their branches on Monday. Many online investors could not get at their money today so I guess they will be there in person next week. Meanwhile the weekend press will have a field day with this - verdict - will fall lower on Monday.
If it is a sound business then it will recover eventually but that might take quite sometime.

alared

convict90210 wrote: »

P.S. Saw there were some big buys going through today..£25m +

Yeah these were the smart-a*ses that sold the day before when they were two quid hirer.

Next week there will be more pain and then the "bottom-fishers" will start to buy and the smart-a*ses will sell yet again at a profit.
Then on 1st Oct after a statement (profit warning)

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down they`ll go agian.

TAKEOVER BID

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my ar*se

Who in their right mind is going to buy a lame duck.

300p a share

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you read it here first!

ben500

Save4ArainyDay wrote: »

My feeling is there will be more queues outside their branches on Monday. Many online investors could not get at their money today so I guess they will be there in person next week. Meanwhile the weekend press will have a field day with this - verdict - will fall lower on Monday.
If it is a sound business then it will recover eventually but that might take quite sometime.

This is the way I see it, the majority of people are misinterpreting their situation or being led by the media scaremongering but Northern Rock is essentially strong enough to ride it out, I'm just a bit iffy about how much panic the media can cause and could it actually topple Northern Rock? My gut instinct tells me they are too strong, but Charlie on my shoulder tells me that blind panic can be a killer.

ManAtHome

ben500 wrote: »

I have a pain in in the front left hand side of my head from reading this post.

LOL - ok, translation for the artistic...

Your best mate Harry asks you for a £200 loan until next month. He's a bit short of dosh because he's lent his good mates Grouch, Harpo, and Chico £100 each, but they're going to pay him back in a couple of weeks.

Option 1 - you know that Groucho, Harpo, and Chico are upstanding blokes so you lend Harry the £200.

Option 2 - you don't know who Groucho, Harpo, and Chico are - what do you do..?

At least 3 marx for the correct answer...