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A.I.B. SHARES

  • 13-08-2011 8:14pm
    #1
    minktrapper
    Registered Users, Registered Users 2 Posts: 2,010 ✭✭✭


    Is it worth investing some money in A.I.B. shares as they are at an all time low.What are the long term implications.What happens if the government nationalises them.Will shares be worth anything.
    Thanks in advance.


Comments

  • #2
    whippet
    Registered Users, Registered Users 2 Posts: 7,718 ✭✭✭whippet


    go to askaboutmoney.com and see what this genius would recommend:

    https://www.youtube.com/watch?v=z2q7bBVAo74



    the share price is at mental low prices for a reason, should the bank be nationalized you'd get feck all.


  • #3
    radioactiveman
    Closed Accounts Posts: 324 ✭✭radioactiveman


    Look at the cut of him. In fairness though at that time there was no indication of what was going on.

    OP don't even think about putting money into AIB. It's a basket case. The AIB you are thinking about is the AIB when the shares weren't diluted to a ridiculous extent.
    The price seems good in light of what it was before but it's completely changed. It will recover eventually but if you want to buy into a european bank and all that risk, look at banks like Banco Santander (it has a 9% dividend and has a lot of operations in latin america which could grow), bank of greece, even bank of ireland (?). AIB is bottom of the pile. It trades at 10c at the moment - if it drops to 9c and you have 1000 in it are you ok with losing 100 euros? This is what will happen.

    The new banking regulations mean the banks have to have a lot more core capital set aside - long story short is that their profitability will be curtailed. Investigate fully why you would want to own a bank at all at the moment.

    Also think about what will happen in Ireland and Irish mortgages if there is a european recovery and interest rates rise to a more normal level of 4%? Given variable rates are already 1 or 2% higher than the ECB rate? What then?


  • #4
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    His advice is similar to his forum, awful.


  • #5
    pocketdooz
    Registered Users, Registered Users 2 Posts: 1,559 ✭✭✭pocketdooz


    You would struggle to find a worse equity investment anywhere in the world than AIB stock. It is still very overvalued and basically the bank is in run-off, has no chance to grow, is lagued by bad debts, imcompetent management and bad practice. There is NO EQUITY VALUE in the bank. Do not buy the stock.



    .


  • #6
    JJJJNR
    Closed Accounts Posts: 4,791 ✭✭✭JJJJNR


    I didn't know the monk ran askaboutmoney.com


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