help on bank shares

rpm1

I bought €40k of aib shares and €40k of boi shares early this year. the aib shares are now worth €10k and the boi shares are worth €14k. i need some advice now on what i should do next. do people thin/k they can come back in about 3 years? how long will ti take for me to make my money back? this money is really important because it was my inheritence to put a deposit down on a house. gl

Speculator

rpm1 wrote: »

I bought €40k of aib shares and €40k of boi shares early this year. the aib shares are now worth €10k and the boi shares are worth €14k. i need some advice now on what i should do next. do people thin/k they can come back in about 3 years? how long will ti take for me to make my money back? this money is really important because it was my inheritence to put a deposit down on a house. gl

Hi RPM1,

I'm curious, what research did you conduct before deciding to use your inheritence to buying these shares?

eire2009

No point in selling them now. Forget about them to be honest I know its a hard thing to do but looking at them every day is just going to depress you. Give it 6 months to a year there going to bounce around hopefully in your favor eventually.

Comordha

I don't believe your story. Nobody throws €80k at the market that casually or without seeking advice. And, if you did, then you deserve to lose it all.

cullenswood

I don't think he came on here for snooty comments telling him he made a bad investment. I think he knows that already. Bit of cop on with your replies wouldn't go astray

AntiRip

rpm1 wrote: »

I bought €40k of aib shares and €40k of boi shares early this year. the aib shares are now worth €10k and the boi shares are worth €14k. i need some advice now on what i should do next. do people thin/k they can come back in about 3 years? how long will ti take for me to make my money back? this money is really important because it was my inheritence to put a deposit down on a house. gl

I've a few euros in BOI rpm1 so probably not the best to advise . Not much you can do now except sell (depressing as it is) and get some good professional advice and reinvest in something better in the chance of getting some money back. The second choice is leaving it there and forget about it for a few years maybe. Hope this helps a little. Sorry mate, it's a lousy feeling

RoadKillTs

I don't think he came on here for snooty comments telling him he made a bad investment. I think he knows that already. Bit of cop on with your replies wouldn't go astray

He came on here in the hope that we would tell him that everything would be ok just hold them for a bit and the price will go back up and as that has not happened he hasn't bothered coming back.

At the end of the day there is absolutely no excusing what this guy did. "Investing" 80k of your inheritance in BOI & AIB when one of them faces been fully nationalised and the other losing billions is in my mind unforgivable.

I would give anything to have 80k to invest in equities

AntiRip

RoadKillTs wrote: »

He came on here in the hope that we would tell him that everything would be ok just hold them for a bit and the price will go back up and as that has not happened he hasn't bothered coming back.

At the end of the day there is absolutely no excusing what this guy did. "Investing" 80k of your inheritance in BOI & AIB when one of them faces been fully nationalised and the other losing billions is in my mind unforgivable.

I would give anything to have 80k to invest in equities

Just noticed by your post he posted three weeks ago. You're probably right. Wish I had 80k just in my savings account

RoadKillTs

Just noticed by your post he posted three weeks ago. You're probably right. Wish I had 80k just in my savings account

I posted in the other thread he created a few weeks back as well and advised him to sell AIB and hold BOI. He hasn't been back since.

AntiRip

I think it was panic of the realization of what he's done. I had the same feeling myself. I was (un)lucky to invest just half my money in BOI but I'm resigned to the fact now that this is my pension account .

I'm tempted to invest some money (with a friend stockbroker) in much better companies maybe BP, Apple, etc. to offset some loss in the medium term but because I was burnt I'm just going to keep the rest in a good interest account for a rainy day . I could average down from e1.50 to 70c but the voices in my head are shouting NO NO NO!

rpm1

Speculator wrote: »

Hi RPM1,

I'm curious, what research did you conduct before deciding to use your inheritence to buying these shares?

i read the newspapers, listened to brian lenihan promise that aib would not be nationalised and took advice from here and other forums.

rpm1

can someone explain why the share price of these banks are going down?? brian lenihan has said nationalization is off the cards so this should be very good for the share price?

Smcgie

rpm1 wrote: »

can someone explain why the share price of these banks are going down?? brian lenihan has said nationalization is off the cards so this should be very good for the share price?

Without being smart, companies need to be making money in a stable economic environment which in turn reward their shareholders with an increasing SP.

There has been major dilution in the SP of Irish banks and they are not making huge profits or operating in a economically stable environment.


There are more cons than pros with these shares and until several things are sorted I see no increase in their SP.

All the best
~S

AntiRip

Smcgie wrote: »

Without being smart, companies need to be making money in a stable economic environment which in turn reward their shareholders with an increasing SP.

There has been major dilution in the SP of Irish banks and they are not making huge profits or operating in a economically stable environment.


There are more cons than pros with these shares and until several things are sorted I see no increase in their SP.

All the best
~S

You're dead right there and the fact that Ireland is seen as a basket case internationally doesn't help either as it doesn't inspire confidence. We're probably hanging on a thread to IMF intervention.

I know this doesn't sound good for me holding shares in BOI (was trading on the massive movements until I was caught!) but there doesn't seem to be any good news in the future for banks either as interests rates will rise, more and more defaults, governments cuts will make it worse and we probably won't know what the final outcome will be after this 4 year budget plan.
Fairly depressing stuff

OfflerCrocGod

There is no bottom to shares like BKIR or AIB at the moment due to the fact that you can't calculate their yield or ROCE. Basically large pools of capital don't have Buy orders set on them if the Offer drops low enough on them, it's impossible to calculate their return over the short term so they are trading shares not investment shares.

Now over the long term BKIR at least is a great bargain and that's why value investor funds have being buying it, but they are thinking of multi-year holding times and don't mind not receiving income for that period.

Impossible to tell where BKIR will find bottom but Friday's price action was encouraging. It collapsed nearly 10% but rallied quickly back up.

ixus

Locked. Use the main bank threads please.