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Northern Rock - Shares [Merged Threads]

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  • aardvaak
    aardvaak Posts: 5,834 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Just bought £750 worth of NR shares late this afternoon. Is this a good recovery play folks??


    Good for you - might do the same myself.
  • So last year, I'm sure you meant to type "brought".
    Happy chappy
  • jamesd wrote: »
    If I was betting, and I'm not, I'd be interested in knowing where the senior executives of NR are this weekend, particularly their senior legal people. If it's a hotel that happens to have senior executives of another bank staying there, Monday may just see a suspension of trading due to a takeover.

    The poison pill is irrelevant when the share price is temporarily 30% below it's reasonable market value, provided any buyer has ample liquidity.

    Also remember that the BoE money wasn't a gift, it was secured on the mortgage book of NR, so they do have the assets to back the money they took.

    how exactly do you know the reasonable market value? wouldn't the value the market has actually ascribed to the shares be more reasonable?
  • sdooley wrote: »
    how exactly do you know the reasonable market value? wouldn't the value the market has actually ascribed to the shares be more reasonable?


    Its not possible to, the data is old data the price to earnings etc was probably based on being able to borrow on the interbank market at 3.5% now that borrowings in less then a year has gone up to 7%. How does that effect its value? probably more or less wipes out everything but its building assets at the moment.

    Some people have said the price could go to as low as 1.50 before theres any sort of recovery, and the recovery will be very very slow and maybe to £5 if your lucky. Again you just dont know what the markets going to do. If your buying at 4.50 and hoping for a quick bounceback your not appreciating the situation. If you want to profit from a recovery wait until november or some real signs of the interims are in as no big players will play without hard evidence of security, they don't flip a coin like you lot seem to do to assess risk. Gambling is a sure fire way to lose money in the long term, you win one you lose one bigger.
  • If my money wasn't all stuck in Cash ISAs, I would have punted on NR stock. It's a knee jerk reaction and the price will bounce back Monday morning. It might head back to 520p. In the long term though, it'll be going down because it'll be harder to raise it's future revenues due to the slowdown. (Looking through my crystal ball). :P
  • alared
    alared Posts: 4,029 Forumite
    If my money wasn't all stuck in Cash ISAs, I would have punted on NR stock. It's a knee jerk reaction and the price will bounce back Monday morning. It might head back to 520p. In the long term though, it'll be going down because it'll be harder to raise it's future revenues due to the slowdown. (Looking through my crystal ball). :P

    You will be glad your monies tied up in an ISA.
    These shares will bomb again on Monday probably by another third!
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    sdooley, value at least a few weeks ago, assuming a recovery when backed by ample cash. The current market value doesn't assume ample cash availability and recovery.

    Yant1, since trades on Friday included a buy of 25 million worth of the shares, it appears that some big boys are interested.
  • jamesd wrote: »
    sdooley, value at least a few weeks ago, assuming a recovery when backed by ample cash. The current market value doesn't assume ample cash availability and recovery.

    Yant1, since trades on Friday included a buy of 25 million worth of the shares, it appears that some big boys are interested.


    For the last time these are the f**kin short buy back you dumb a*s
  • Has anyone managed to get online with Northern Rock today, they say it is possible but as I can only get as far as a mesage saying we are busy please try later, I am beginning to think they has taken the site down to keep the money in!!!:cool:
  • haha yant1 is getting angry since no-ones listening to him. well gutted you deserve it man, no need to swear at other peoples posts.

    you aint no boss u cant stop peoples freedom of speech
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