HBOS shares

sabretoothtigger

Price to earnings ratio of 0.89 :think:

Upside to this is, it would not take a great capital investment to price average into the stock at the lowly price of 94p

NEW YORK (MarketWatch) -- Commonwealth Bank of Australia Ltd said Tuesday it has started exclusive talks with Britain's HBOS Plc to buy its local unit, BankWest.

http://www.marketwatch.com/news/story/australias-cba-talks-buy-hbos/story.aspx?guid=!!45582FE8-5E04-4C88-B92C-0F23CD4EFF47}

The most recent flow of funds data shows that total credit market debt is $51 trillion; our GDP is $14.3 trillion. Debt as a percentage of GDP is now 356%; during the Great Depression, it was 260%. This massive buildup of leverage is just beginning to unwind; the pain will be tremendous when it gains momentum.

ad44downey

HBOS shares NOSEDIVE 42% today.

A horrendous day for this turkey.

I,_Brian

Am tempted to buy, but every time I do, share prices keep falling.

For my shares ISA I bought into RBS at 229, thinking it was a low. Don't I feel a chump now they are trading at 90p?

sabretoothtigger

I think the key is consistency, so if you take a long term view then right now it seems best not to buy just once.

When Ive read about buying into a market, sector or something risky like emerging countries they talk about accumulating the investment gradually over 6 months to a year so you get an average long term price

Also if you hold them to a target price then it would mean you buy into the share when they dip below and sell when above, in proportion to how much they are out of line with your estimate of their long term worth.
That would mean buying quite alot right now but somehow I think this works best when you have lots of money to spare and alot of confidence ie. easier said then done

iamesbo

I watched the shares tumble from over 1000 down and down, each time expecting they
would bouonce back the next day. That bounce didn't happen so eventually I sold.
I lost qute a bit but I decided it was time to accept reality, that they were a hopeless
case and something was considerably better than nothing.

I might be wrong of course but I was fed up with the endless falls.
It is much more fun watching the drop when you don't own the shares!!

sabretoothtigger

Have you to checked to see how much buying your original holding would cost now.

They are the same company now with pretty much the same assets as they had at 10 pounds a share, to me it seems the greater risk was taken by those who bought at 10 then those who might buy now at .94.


http://en.wikipedia.org/wiki/Counter-intuitive


Bernanke is due to speak apparently, more interested in his words then brown tbh

iamesbo

I think hbos got out of the uk market to get in the usa sub prime!!
Then they got back into the uk to 'rebuild market share' at the peak.
I expect their books look a bit nasty.
Another rescue plan has been announced, soumd like technicall they (hbos) are bankrupt or verge thereof.

They are surviving on social security.

sabretoothtigger

No its not that clear, they arent bankrupt or insolvent. The share price reflects future events that may never come true.
If you want take their finances literally on today only, they are strong enough to buy back every share they have on the market without help from the government.
The whole share buy in thing is unhelpfull

The books are bad because no one knows what they say, maybe everyone pays back their mortgage or maybe no one does. The government should buy the bad mortgages and take the risk on head first but brown is gutless

thumshie

HBOS +29 on open price..now 123

Also, sells their Aus Business for $1.5BN...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPiHw8ZRWW8M&refer=home

sabretoothtigger

The Daily Telegraph reported

Lloyds is renegotiating the terms of its planned takeover of rival HBOS PLC (HBOS.LN), although Lloyds is "confident the deal will still go ahead."