RBS Group Shares. Hold? Sell?

chambta

First time I've posted on this section so hope I'm breaking no rules seeking a little advice from others on this.

I've a few hundred RBS group shares from a matured sharesave scheme (should have cashed em in straight away!) and wonder what others expect to happen to the price over the next year or so.

It's gradually worked its way down for a year or so but it seems to me that it must go up again as the total value has virtually halved in recent times. Thoughts?

debbie42

The fact that a share has halved in value doesn't necessarily mean it will recover. It doesn't mean it won't either!

There is a very active RBS discussion forum on The Motley Fool, with differing opinions as to whether to buy, sell or hold. For what it's worth I'm holding, but that doesn't mean I'd advise anyone else to!

agent_orange_2

RSB shares have recovered some lost ground over the last week or so. But they are still well down overall. The value of these shares, bearing in mind they are a 'Blue Chip Company', are very volatile at present and are particually sensitive to any Banking news or rumours (come to that). If you are not in any instant need of the funds I would be inclined to hold tight, there is probably good upside in these shares - long term.
All imho

chambta

No, have no real need for the cash so will sit tight. I set a sell price of £5.15 when the share saved matured....wishful thinking!

anna42hmr

i am holding onto mine as i have no need for the cash at the moment, though i will see what the share price is like when my next share save options are up in october, when i can decide on to buy or get the money i paid into the sharesave plan back

dont forget though, you also get the dividends on the shares

amcluesent

IMHO, sell any banking shares in the current strengthening market, it's just a 'sucker rally' and banking will crash again in the summer to new lows.

ad44downey

I disagree. UK bank shares, except A&L and B&B, are ridiculously cheap. These shares are half price and are an absolute bargain. They'll double in value within a few years

Aegis

ad44downey wrote: »

I disagree. UK bank shares, except A&L and B&B, are ridiculously cheap. These shares are half price and are an absolute bargain. They'll double in value within a few years

The flip side to this is that people were saying that about Northern Rock at 600. There's never any guarantee of share value increases, especially in difficult times.

ianmr65

amcluesent wrote: »

IMHO, sell any banking shares in the current strengthening market, it's just a 'sucker rally' and banking will crash again in the summer to new lows.

And some

Assume you hold a grands worth, so the divs arn't going to be up to much: the rally will last exactly as long as the period during which there is no more whispers 'bout a bank about to go. Or another disaster on the property front. So i recon even a shorter period than amclue - a week, maybe two, maybe a month. Keep your eye on lehman, citi, ubs, hbos, santander for a clue when the market is about to turn.

You can always buy them back again if the price starts to rise dramatically in year or so.

ad44downey

Aegis wrote: »

The flip side to this is that people were saying that about Northern Rock at 600. There's never any guarantee of share value increases, especially in difficult times.

You can't compare Johnny come latelys like Northern Rock, A&L, B&B with their risky business models to the likes of Barclays, Lloyds TSB, etc. They are totally different beasts.

ianmr65

ad44downey wrote: »

You can't compare Johnny come latelys like Northern Rock, A&L, B&B with their risky business models to the likes of Barclays, Lloyds TSB, etc. They are totally different beasts.

HBOS came within a day of going down.