What happened to A&L today (shares)

FelOn_2

No major news, just one downgrade from Deutsche (who's parent has lost $3.1billion + :rotfl: ). The A&L share buy back continues, yet the shorters are on top :rolleyes: I took a long punt on B&B @£2.84 today, lets hope there's nothing coming out of the woodwork over the weekend :eek:

BMWobbleU

FelOn wrote: »

just one downgrade from Deutsche

Those damn Germans!!!!!!! Love their cars though.

[Deleted User]

Ill let you in to a secret come this way into my room, sit down on the couch ill make you a cuppa.

Share prices can go down as well as up. One a they might be traded at 1 billion quid the next nothing and the day after that 2 billion.

wayne42

Yant1 wrote: »

Ill let you in to a secret come this way into my room, sit down on the couch ill make you a cuppa.

Share prices can go down as well as up. One a they might be traded at 1 billion quid the next nothing and the day after that 2 billion.

You should write a book..
Share dealing for dummies perhaps?

FelOn_2

Yant1 wrote: »

Share prices can go down as well as up. One a they might be traded at 1 billion quid the next nothing and the day after that 2 billion.

True, but without a change in fundamentals, difficult to work out what happened around 2pm.



I was going to buy at about 4pm, until it started moving away in the last 1/2 hour. It's just surprising to see the fall when AL are soaking up so many shares in their buy back :rolleyes: Anyway, i moved on to BB.

MarkyMarkD

Share prices are affected far more by sentiment than by fundamental valuation issues. It's amazing to see the volatility in some shares - like A&L's and B&B's in fact - over the past few months, very little of which has had any real reasoning behind it.

Whilst the cost of funds has risen for lenders recently, it's pretty obvious that all the other mortgage lenders will benefit from Northern Rock's decline.

[Deleted User]

Theres a billion possibilities maybe the recent deutse downgrade inspired a fund to open up a short position, this inspired a selling trend downwards.

Maybe profit takers just all thought f,eck it at the same time

Maybe no body was simply feeling like buying at that current time.

Lots of things, but if it keeps heading down ill prob be in with 10K again, despite myself being very weary of banks at the moment. If I go in again I wont aim to be keeping them long.

At the current prices, a+L looks a better punt then B+B mainly as its not as reliant on mortgages IMO. But I wouldnt recommend either as theres a chance they may go down further and if the housing recession takes off it might be a while before their profits boom again. You might have to average down + hang on for 5 years if it really hits the fan.

MarkyMarkD

A&L and B&B are completely different animals. This is something the market doesn't seem to appreciate a lot of the time - look at the way A&L and B&B were both hammered in the same way after the NR debacle.

IIRC, less than half of A&L's profits come from mortgages & savings, compared to all/most of them for B&B and NR.

FelOn_2

MarkyMarkD wrote: »

A&L and B&B are completely different animals. This is something the market doesn't seem to appreciate a lot of the time - look at the way A&L and B&B were both hammered in the same way after the NR debacle.

IIRC, less than half of A&L's profits come from mortgages & savings, compared to all/most of them for B&B and NR.

AL and BB don't even rely on the wholesale money markets as much as NRK did.

Northern Rock required 75% of their funding from the wholesale markets.

Alliance and Leicester require 50% of their funding from the wholesale markets.

Bradford and Bingley require 25% of their funding from the wholesale markets.

http://www.lse.co.uk/MacroEconomicNews.asp?ArticleCode=78ydluxrucgoe4m&ArticleHeadline=a&l_bradford_&_bingley_see_no_threat_from_credit_crunch