RBS Group Shares. Hold? Sell?

earlgrey_3

ianmr65 wrote: »

HBOS came within a day of going down.

Hmm, sounds like someone's been reading the Sun's business pages.

happylife

There are lots of "should I Sell" or "should I hold" questions with lots of inaccurate replies who don't know either.

It's all rumours and why the share is so volatile, as people are buying and selling as their best friend said they will crash or some financial analyst said they will double in price,

Learnt this lesson many years ago to NOT take financial advice from anyone about if a share is good or bad.

You need to do your own financial analysis and understand financial statements of a business and how to value a company. Don't take it from a forum. You may as well put your money on a Roulette table for BLACK or RED, win or lose.
It becomes a gamble when you don't understand company financial statements..

If you do understand company financial statements then it becomes much easier to select a company based on value. Not recommendations.. And your less likely to lose your money..

cheerfulcat

chambta wrote: »

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?

There is absolutely no guarantee that the value won't halve again. What do you think would happen to the share price if the dividend were reduced or eliminated altogether, for example? A distinct possibility, btw; it would look a bit spivvy if they paid a dividend whilst borrowing money from the taxpayer...

I hold RBS as a small portion of an income portfolio. If the dividend is cut, I'll probably sell. You need to ask yourself why you are holding the shares and act accordingly - but keep in mind that " the price has dropped so much that it can't drop any further " is not in itself a good reason for holding!