Thinking of buying AIB and Kingspan shares - are they worth it?

joehandyman

I'm considering for the first time of buying some AIB and Kingspan shares. As current deposit rates are so low, I am considering using some of my savings to purchase shares instead of leaving it all in the credit union.

It mightn't sound like much, but I was thinking of spending in the region of Eur 1,000 - Eur 5,000. I would really appreciate some assistance with the following:

1. Now that the share prices are relatively low, is it reasonable to assume that there is good value at present and that the share prices of both companies will increase in the future? If so, how long would you expect to hold on to the shares?
2. Is it likely that AIB could eventually be nationalised to simplify the transfer of assets from AIB to NAMA? If this happens, what happens the shares purchased?
3. How do you go about buying shares and is there much hassle involved?
4. If AIB and Kingspan are not good options at present, which other Irish Plc's would you recommend?

Looking forward to hearing from you and thanks in advance..........

Mort5000

Hi Joe,

I would suggest having a read around the forum on the posts about bank shares.
If you're looking to buy short term they could be an option.
If you're looking to buy and hold for value (or dividends) I would say that the banks aren't great value. Especially considering that they're paying no dividends at the moment.

As for buying any shares, you can buy them at your local AIB if you have an bank account there.
If you don't then there are a million share trading companies that will happily take your money for the priviledge of being allowed to trade.
Davy. Goodbody. Sharewatch. Other more experienced posters here can recommend more.

Hope this helps

Mort

pog it

You will have to pay per transaction when trading. So if you say go with an online trading account withan Irish broker (you can deal with foreign brokers too of course) and pay the average of 30 euro you will be paying 120 euro just on buying and selling. There is also DIRT tax.

Stay away from buying shares by telephone order. Costs are 100 each way in some cases so you'd be spending 400 if you buy and sell both companies. Youd want nice profit to be doing that.

alfa beta

Here's an answer to your question 3

You can buy up to 15k in shares with sharewatch - without having to open any account.

It's their small trades service and it's handy if you just want to make an occasional (and relatively small) purchase.

I found the service simple to use. Ring em up, they'll let you know how to lodge money into their account (in ulster bank in Cork) and once the money's in you can give em a call and buy whatever shares you want (to the value of your lodgeent of course!)

Because you won't have an account with Sharewatch, they'll then send you the share certs - detailing what you own. Keep these certs safe until you want to sell and whenever that is just ring up a broker and sell.

I've no affiliation with Sharewatch by the way, just found their small trades service useful before I opened up an account. Also found them quite helpful on the phone when I was asking dumb questions.

pog it

Feedback with regards Sharewatch is VERY mixed.

Some people have said there were delays on their buy orders therefore they ended up buying in at higher prices, etc. - Google it and check other forums for opinions on individual brokers.

I can recommend Davy for Irish shares but they are only value if you have an online account with them. Davy.ie- they will help you with all you need to get set up and I've heard they have a lot of research available to clients online so prices posted are always up to date. Sharewatch has had negative comment in that regard re. updates of prices.

I know that I wouldn't personally be investing in Irish companies unless they had exposure to foreign commercials- Kingspan are supposed to be a very well run outfit with brilliant top management though and do deal in property abroad. Again could be slow. You will also need to see WHEN you invest. Timing is really important.

You should read up as much as possible on them.

The banks could still go either way, you just never know, so they are still more risky than Kingspan in my opinion. Then again, they are tight with the government so........

alfa beta

hi again - just to make things clear....

I'm in no way endorsing Sharewatch's general service as a broker.

All I'm saying is that you can buy shares through them without having to open an account (once you don't exceed 15k) - using their 'small trades' service.

This makes the actual buying of a small amount of shares on a one-off basis quite straightforward and saves you the cost of opening an account - and that appeared to me to be the type of service that might suit the OP's situation

And because with the small trades service you have to deal over the phone, then the shareprice is confirmed at the time of buying. Again for a complete novice (like i was) I found this useful

Personally I don't know if Davy's, Goodbody's etc offer this type of thing. Perhaps they also do.

pog it

Sounds like you have been one of the lucky ones not to have experienced problems with ShareWatch. I'm happy for ya, but I wouldn't like to see the OP having problems- especially when there are so many negative reports by people.

Setting up an account itself isn't that expensive either by the way and you get access to lots of research, and get your shares bought and sold professionally.

And! If the OP is in Dublin he can go into the broker's to set up the account and meet with a broker.

The brokers can't tell you what shares to buy and not to buy, but I can tell ya this- It was suggested to me very subtlely when I met with Davy the first day to set up my account back early 2007 not to buy BOI at 10euro a share: when I suggested another company, they said that would be an interesting and different play so I knew what they meant..

Just want to let the OP know there are other options besides ShareWatch.

jonnyj

Have a look at share.com. They are very good, they have good tips and stop loss control built into you account and charge £7.50 per transaction. I will probably change to them shortly.

Da Ross

Hi,

I have an account with National Irish Bank. Its quite simple. Just trade with whats in your account! I find it very quick to buy and sell. There's no forms to fill in.
I found Sharewatch very bad. I sold some shares and they asked me to fill in the form when I recieved it. It took over two weeks to get the form as they said they send it to an address in Dublin first. They kept calling me up and asking me why I hadn't sent i the form but I never recieved it. The form finally arrived and the said they'd bill me per day after a certain duration if I didn't return the form I hadn't recieved! I'd never use them again.