Any Reasons not to buy BOI shares?

Smcgie

Throw them at me? I have been looking at them for ages and after the 48% increase yesterday i am thinking strongly of investing..

Any feedback welcomed

4arc

have also been thinking bout investing my savings in fluctuating bank shares and foriegn currencies for a while.

seriously though, have to wonder why people who actually fully understand the financial system dont snap them up?

nobody knows what will happen tomorrow. what will they be worth in a months time? in a years time?

if ur seriously planning on investing serious money i would really do some homework (professional advice) and not rely on boards for sound sound financial advice, although, you never know!

ball ox

Smcgie wrote: »

Throw them at me? I have been looking at them for ages and after the 48% increase yesterday i am thinking strongly of investing..

Any feedback welcomed

One word..............."Anglo"

road_2_damascus

BOI is history...any day now, you will wake up to the voice on RTE saying, 'the government has decided to nationalise the bank of ireland after the bank's shares tumbled yesterday to an all time low of 2cents a share'..put your money in green technology, not the friggin bank!

MrLNB

Ok, for starters, don't put all your eggs in one basket. I am where we all are, on the sidelines thinking and wondering. Below are the points that are going through my head.

1. If i want to buy bank shares, think as if its throwing away money. . . think as if its history, , , i.e. dont borrow or put all you have into it.

2. Put maybe €1,500 into BOI and another 1.5k into PTSB. If anyone is nationalized it will be either BOI or AIB.

3. I have read and spoken to a lot of people in the Financial area (which i am in myself) and all seem to be voicing the same theory's. BOI and AIB and all other banks will not be nationalized. Our Gov could not cope with it, FF has a lot of how shall we say best friends in these sectors, and if they were to be nationalized that would be it, game over. I also hear that if a bank that was worth (BOI €18 Billion in Jan 2007) is nationalized, in a small country like Ireland, then that would be catastrophic for the economy, and we would end up worse than Iceland, The government is loosing 2 billion a month, so I see no possibility of these banks been nationalized. The mini budget is their next party piece, but will it work?

4. In June 2007 the ISEQ index over all was worth €10,000 but today its worth just €1,949. Now everyone is entitled to their own opinions, but i think that we have really over shot the mark and would be looking for a strong rebound in Q3/Q4 2009.

5. Just as was said on Bloomberg which is on in the background as i type, all this stimulus and budgets and (mini budgets) all have had what effect on markets????? correct, "nothing". so when it does, and it will, its just a matter of when, the correction will be huge.

6. Equities are very attractive, but don't be just looking at the banks, look at other stocks, just on the ISEQ alone, there are relatively under priced stocks which have been washed down the river headed up by financials.

Its great to air your thoughts, Stockopedia is a great site for newcomers, you can set up a virtual fund.

Remember. . .3 most important things,
Capital preservation
Capital preservation
Capital preservation

&

buy low sell high

and one more """ IF you aim for nothing, you will hit it """"

LNB

Gurgle

If you've got money you can afford not to see back for 5-15 years, BoI looks good.

The bank is guaranteed to continue existing, so the shares will never be worth nothing.

Eventually there has to be another boom and then you will get your return. Think in terms of your pension, not the deposit for your first house.

ixus

Keep it it the BOI thread :rolleyes:

MrLNB

Gurgle wrote: »

If you've got money you can afford not to see back for 5-15 years, BoI looks good.

The bank is guaranteed to continue existing, so the shares will never be worth nothing.

Eventually there has to be another boom and then you will get your return. Think in terms of your pension, not the deposit for your first house.

Yes, good point which I forgot to include, if it works, more fool to invest and pull out at €.80c or €1. This is a risk, and you need it to pay,

If im going to risk, I will hold, for a boom as you said. . Mortgage pay off or future income as you said.
Thanks,

MrLNB

ixus wrote: »

Keep it it the BOI thread :rolleyes:

I agree that its good to hold one thread,

But ever notice that you start reading a thread and by page 3 of 7 the conversation has gone from its thread title.. . just a thought.

happens every time. .

I for one, loose interest in reading big threads,

heno55

Smcgie wrote: »

Throw them at me? I have been looking at them for ages and after the 48% increase yesterday i am thinking strongly of investing..

Any feedback welcomed

i had the same thoughts about the banks in dec when they seemed very cheap so i took a punt they are now as good as worthless and the anglo are worthless,it is looking very much like nationalisation for aib/boi,at the monent crh look to be a good buy

daveirl

This post has been deleted.

woodseb

Gurgle wrote: »

The bank is guaranteed to continue existing, so the shares will never be worth nothing.

that is simply not true in practice, the powers that be will continually deny any bank needs to be nationalised until it actually happens

to base an investment decision on such a 'guarantee' would be foolish, it is not a lock in

Saabdub

If BOI is a good investment why don't the management do an MBO, take it private and restructure? They have the inside knowledge and know what the bank's worth and should be able to convince some finance house with deep pockets that there's value there. No sign of that happening. Next question. Are the management buying or selling shares in the bank? If the management aren't buying the shares at these prices I wouldn't risk my own money. Besides I already own too many Irish bank shares through my severely depleted pension fund.:(

Saabdub

Running Bing

Saabdub wrote: »

If BOI is a good investment why don't the management do an MBO, take it private and restructure? They have the inside knowledge and know what the bank's worth and should be able to convince some finance house with deep pockets that there's value there. No sign of that happening. Next question. Are the management buying or selling shares in the bank? If the management aren't buying the shares at these prices I wouldn't risk my own money. Besides I already own too many Irish bank shares through my severely depleted pension fund.:(

Saabdub

Why do you people always show up with your well reasoned rational analysis of the situation and burst the bubble (if you'll pardon the pun).


reading this thread I was ready to remortgage, put it all into BOI and become a millionaire;)

Gurgle

Saabdub wrote:

If BOI is a good investment why don't the management do an MBO, take it private and restructure? They have the inside knowledge and know what the bank's worth

Because that would be insider trading, theres a few little laws against that. MBOs are only allowed if the company is at death's door.

Saabdub wrote:

Next question. Are the management buying or selling shares in the bank? If the management aren't buying the shares at these prices I wouldn't risk my own money.

Most senior management have less than 10 years to retirement, they can't play the long game any more. (Playing it in the last recession is most likely how they got to be senior management).

Babybing wrote: »

reading this thread I was ready to remortgage, put it all into BOI and become a millionaire;)

When you say "reading", do you mean "skimming through and picking out every 6th word"?
Because you appear to have missed the point.

daveirl

This post has been deleted.

LostinBlanch

OK I know this might sound a stupid question, but as someone who isn't an investor, and who has only a passing vicarious interest in bank shares, what happens to shareholders if / when nationalisation occurs?

Does that mean shareholders shares are only worth their curiousity value? Do the govt have to redeem the shares at whatever the market value is at the time of nationalisation much like they facilitated the screwing over of eircom shareholders?

norming09

Hay I was wondering could anyone give me some advise.

I have bought some Bank of Ireland Shares purchased at around .60 and .30, but i have say 5k, to play around with which i would like to invest.

I am absolutely cutting my throat that I didnt purchase the shares at .12 , will they drop that low again does anyone recon? and would it worth investing 5k in them if they did? or are they on the increase now?

Glacier

Is anyone else seriously thinking about investing in the long-term if nationalisation was ruled out?

Stuart2

If Nationalisation was ruled out, I think it would be safe to say that

1 The AIB / BOI share prices would jump in the short term.
2 I would think that at current share prices they would be good long term investments.

The problem is that nationalisation is a real possibility and therefore buying the bank shares at the moment is a big risk. I don't know how it works to be honest but I have heard Anglo shareholders will get hardly anything. Maybe someone could explain what exactly happens to your holdings if the company you invested in is nationalised?

Glacier

Do you think there would be many people thinking about this & just waiting until things improve to the point where nationalisation seems unlikely then leaving it grow for a few years?

Stuart2

Well nationalisation seems to be a word a lot of people are talking about so Id say yeah there are good few people waiting to see if an announcement will be made.

If you are asking if people will be in it for the long term or not, nobody can really say. Id imagine there are a lot of potential short term investors out there waiting to invest but if such an announcement were to be made then maybe the institutions, pension funds and big foreign investors will come back in and they would surely be long term investors.

Obviously it's just an opinion, I could be wrong. It's safe to say though, that while AIB / BOI shares could be a great bargain, they are very risky investments at the mo.

Glacier

Will anyone actually admit to seriously thinking about this, if so, how much would you gamble?

Idu

Stuart2 wrote: »

but if such an announcement were to be made then maybe the institutions, pension funds and big foreign investors will come back in and they would surely be long term investors.

More likely you will need to see them begin to pay dividends again before any pension fund goes near them.

As for big foreign investors I think you'll find the biggest investor of them all, Warren Buffet had his hand spanked by Irish banking shares. The idea that foreign investors are just sitting around waiting for good news from Ireland is hilarious tbh

Glacier

What about Irish investors?

Idu

Like the Anglo golden circle?

How did they fare out again?

Stuart2

Glacier wrote: »

Will anyone actually admit to seriously thinking about this, if so, how much would you gamble?

I have caertianly looked at it and if there was an announcement about nationalisation being ruled out, I would probably invest if the price was the same as it is today. Before that, no I wouldn't personally take the risk. How much I would gamble is irrelevant as it's all relative to the person. Only put in what you can afford to lose.

Idu wrote: »

More likely you will need to see them begin to pay dividends again before any pension fund goes near them.

As for big foreign investors I think you'll find the biggest investor of them all, Warren Buffet had his hand spanked by Irish banking shares. The idea that foreign investors are just sitting around waiting for good news from Ireland is hilarious tbh

Perhaps you're right. However, if such an announcement was made concerning the Irish banks, they would surely present improved value and I am sure they would become more attractive to home / foreign investors. Just because Warren Buffet made one bad decision with Irish banks does not mean he will never touch them again.

norming09

Does anyone know whats the best shares to invest in large amount say 5k or 10k for short span for a return?

Id appreciate advice on this