shares in bank of ireland

jap gt

I has reading a few different threads about investing, a few people mentioned buying shares in bank of ireland, currently about 9 cent, do ye reckon its worth a shot as a long range investment 3-5 years

grover_green

jap gt wrote: »

I has reading a few different threads about investing, a few people mentioned buying shares in bank of ireland, currently about 9 cent, do ye reckon its worth a shot as a long range investment 3-5 years

while almost every other bank in europe has rallied since draghis comments in early august , bank of ireland has dropped from around 9.5 cent to 8.5 cent , i bought some at 9.7 cent in may , i bought some more at 8.7 cent a few weeks ago , tbh , i dont think bank of ireland is that great of a buy , with mortage defaults in the pipeline for years to come , i cant see it getting above 10 cent for a considerable time , it may rally a bit if news out of the ECB is possitive this coming week but the domestic economy , visa vie the property market will continue to weigh it down

Fitz123

While BOI may not have been hit as badly as some of the other Irish banks, there will be undoubtably huge future loan losses, from owner occupied and buy-to-let mortgages. IMHO it's quite a risky stock.

If you are willing to take a risk go right ahead. IMHO I'd prefer something safer like Tesco. Lower potential returns yes. but much lower risk.

grover_green

Fitz123 wrote: »

While BOI may not have been hit as badly as some of the other Irish banks, there will be undoubtably huge future loan losses, from owner occupied and buy-to-let mortgages. IMHO it's quite a risky stock.

If you are willing to take a risk go right ahead. IMHO I'd prefer something safer like Tesco. Lower potential returns yes. but much lower risk.

compared to tesco , all bank stocks are risky , bank of ireland is unquestionabley a gamble

their are two things which give me hope for it however

1. it would be rare for a country to not have one single major bank

2. billionaire wilbur ross put a billion of his own money into the stock @ 10 cent , now that might be like you or i putting in 5 k but theese people rarely put a match to money

siralan

I am also considering investing some money in BOI shares. I have never bought shares before and would only be willing to risk about 2k. Im wondering what are the chances of the bank being nationalised and if it were to be nationalised does this mean I automatically loose any money invested ? Are there any other imminent risks apart from the share value dropping further?

Fitz123

Bank of Ireland has attracted external investors including Wilbur Ross a well known US investor. As such there is much less state ownership than the other banks. Probably unlikely to be nationalised, but wouldn't bet on it.

However it is a highly risky investment, and as you mention it is your first investment, are you willing to lose a large portion of it ? If not you are probably better going for something safer. Possibly less potential from a safer share investment, but less likely to be a down side too.

siralan

Yes, I think with any risky investment you need to be willing to take the hit if things go wrong. Im a gambler by nature and the way I look at it is if I were to leave it there for 2 years and in that time if the share price went to 20c then I would have doubled my money. If the worst came to worst and the bank were to be nationalised then I would have to take it on the chin. I just feel that the day banks become nationalised in Ireland is the day that our banking sector dies a death. Everything else we have nationalised in this country seems to be over burdened with pen pushers and a complete lack of efficiency. What worries me about investing in bank shares is for instance if the bank were to release more shares does this dilute the value of every existing shareholders investment without the share price changing?

martyoo

Im wondering what are the chances of the bank being nationalised and if it were to be nationalised does this mean I automatically loose any money invested ?

More than likely they will not be nationalised but it's still very risky. The biggest risk in my opinion would be share dilution.

pilip

The two things you need to do, in my opinion, are;

a. Read as much practical/professional information as possible.
b. Use your head/trust your judgement.

You are not proposing to buy shares in any bank, but Bank of Ireland. Today. Where is Ireland at, today. Where is the bank at.....for example does it have investors? What is the likelyhood of those investors being wiped out thought a nationalization or share dilution?

Make a list of the pros and cons and see which ones you agree with more. If you cant make a list of pros and cons (because you honestly don't know what the pros and cons are) then i'd say leave it.

Losing your money with conviction is one thing. Losing it by betting on a horse because you thought it had a nice name is entirely another.

Jim2007

siralan wrote: »

I am also considering investing some money in BOI shares. I have never bought shares before and would only be willing to risk about 2k. Im wondering what are the chances of the bank being nationalised and if it were to be nationalised does this mean I automatically loose any money invested ? Are there any other imminent risks apart from the share value dropping further?

Banks and insurance companies are among the most complex types of businesses to understand and as such are probably not the best type of equity to cut your teeth on.

In the current market there are plenty of good easy to understand opportunities out there. It's easy to identify the quality companies, the trick is to make sure that you don't over pay for them. This is one of the reason why people loose money when investing in equities.

ranger4

Main concern for current shareholders is details with EU bank plan and how they propose to take stakes in weak perifiral banks, e.g swap cash for current gov holding at current or higher market value at transation date? Force banks to raise extra funding to offset against "future" losses via rights issue which could leave esf meeting any shortfall, IF 2nd plan is addopted current shareholders would be all but wiped out through massive dillution.

road_hog

the stock should rise on any upcoming possitive developments re _ our debt situation but the deteriorating mortgage default situation is bound to weigh down the shares fortunes , i can see it @ 15 cent per share by year end and thirty within three if loan defaults can be kept to managable levels , wilbur ross expcets to trebble his money , he has a history of investing in stressed companies and making fortunes

lotusm

..took a big punt on BOI shares a month ago... and they are up 8% today so far. whats driving this....

siralan

Good to hear some positive news regarding bank shares. I considered it a couple of times over the last year or two but everyone said not to and basically I hadnt the balls to risk it ! Fair play to you for putting your money where your mouth is.

Do you mind me asking how much did you put in and and how did you buy the shares ? (bank branch, online, stockbroker??). I enquired in a bank of ireland branch last year and they looked at me as if I had 2 heads !! It was probably that reaction that convinced me I must be bonkers !

lotusm

Dont like to say, lets say you would a new renault fluence for what I put into it... I have an account with called FXCM, if you go on www.sharewatch.com you will see a link... To be honest I am no expert... I can afford to drop a few k and if they went south.. bound to be a good long term bet, but its up to everyone to make their own decision on buying shares....

siralan

I agree , its only worth taking a punt if you can afford to take a hit. At this point I would hope that bank of ireland cant go to the wall. If they have rode out the storm to this point.... etc etc. Saying that, someone did tell me that there are still other risks (something along the lines of BOI releasing more shares to the public ?) and that if that happened existing shareholders shares would be diluted. Really, I dont understand enough about shares to be investing but I still feel they must be a reasonably safe punt at 10c or whatever they now are. I will check out FXCM in the meantime,cheers for that!

euroboom13

if u dont understand enough ....invest a small amount....feel the pain of the ups and downs...if your o.k. with the pain buy more on the downs..dont worry about missing an opportunity ,there is ALWAYS another....watch closely every day ...and learning will be automatic....watchin from the side line teaches nothing!!!
Dont play with dinner money.

Enjoy the game and the money wont matter.....untill it rewards.
boi stock best teacher around..

_itsfitzy

It should be interesting in the morning with lots of traders panic selling up this evening.

http://www.lse.co.uk/SharePrice.asp?shareprice=BKIR&share=