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collapse of BOI share price

  • 24-02-2016 4:03pm
    #1
    Registered Users, Registered Users 2 Posts: 118 ✭✭


    Been no bad news only good but it seems there must be something happening to this bank even the uncertain election result can only effect the governments 14% share the 1 month drop is heading for 40% not as exposed as the big European investment banks


Comments

  • Registered Users, Registered Users 2 Posts: 1,259 ✭✭✭alb


    Deutsche Bank down from 24.5 to 14.8 in the last three months. Societe Generale down from 45 to 30. Markets in general are down.


  • Closed Accounts Posts: 5,092 ✭✭✭catbear


    rossmores wrote: »
    Been no bad news only good but it seems there must be something happening to this bank even the uncertain election result can only effect the governments 14% share the 1 month drop is heading for 40% not as exposed as the big European investment banks
    I think I read today that while their nonperforming loans had declined there'd been a big increase of loans in arrears.


  • Registered Users, Registered Users 2 Posts: 2,124 ✭✭✭Unknown Soldier


    It's my fault.

    Every time I buy shares they tank.

    Sorry.

    I thought topping up on Friday was clever. i didn't think it would go through as they started recovering on Friday morning...


  • Moderators, Society & Culture Moderators Posts: 12,548 Mod ✭✭✭✭Amirani


    Issues are:

    1. Brexit and general weakness of GBP
    2. Irish Election
    3. Low and negative interest rates
    4. General risk-off mood in markets

    Bank stocks have been getting a killing across Europe, BOI declines are fairly inline with Euro Stoxx 600 banks.


  • Registered Users, Registered Users 2 Posts: 369 ✭✭shuyin1


    Can anyone see this moving beyond the world wide instability and possibly back to the 30-40 cents range in the near future?
    Long terms 5-10 years, do you think this is an ok investment?
    Missed the chance at 10c a few years back, might jump in now instead of prizebonds.
    TNAV values Co at 24c vs trading of 26c, roughly 8% premium.


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  • Banned (with Prison Access) Posts: 91 ✭✭stefan.kuntz


    catbear wrote: »
    I think I read today that while their nonperforming loans had declined there'd been a big increase of loans in arrears.

    Excuse my ignorance, but what is the difference?


  • Closed Accounts Posts: 5,092 ✭✭✭catbear


    Excuse my ignorance, but what is the difference?
    From what I read arrears means being behind payment for less than three months, non performing loans are over three months.
    Obviously a big rise in loans in arrears will cancel out any reduction in non performing loans.


  • Closed Accounts Posts: 1,271 ✭✭✭Elemonator


    All the markets are down.


  • Closed Accounts Posts: 5,092 ✭✭✭catbear


    Elemonator wrote: »
    All the markets are down.
    Welcome to the party.

    Question is though are BofI shares worth a punt?

    Any thoughts there elemonator?


  • Registered Users, Registered Users 2 Posts: 5,963 ✭✭✭daheff


    catbear wrote: »
    Welcome to the party.

    Question is though are BofI shares worth a punt?

    Any thoughts there elemonator?

    I think they are. I think BoI are getting hammered when the rest of the world is getting hammered. But people arent looking at the results from last week. BoI are now going to be able to reinstate dividends next year. Thats a big + in my books (albeit you will need to hold out for 12 mths to see that happen).

    Personally I think banking stocks as a whole are cheap...BoI especially so. Underlying profit before tax rose 30% last year. SP on 26/2/15 was 32c. Now its 26c.


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  • Closed Accounts Posts: 1,271 ✭✭✭Elemonator


    catbear wrote: »
    Welcome to the party.

    Question is though are BofI shares worth a punt?

    Any thoughts there elemonator?

    Depends, I rarely financially trade. I hear they are re-instating their dividends to shareholders next year so I'd say they might be.


  • Closed Accounts Posts: 1,118 ✭✭✭ABC101


    Banks could be looking at 1.5 trillion in losses due to the collapse in energy + commodity prices. Energy and commodity producers are going bankrupt / defaulting on loans / bonds at a rate of knots. There is now a global risk to financial institutions could lose a awful lot of money. Comparatively the 2007 sub prime crisis was about 1 trillion. Not sure what exposure BoI has to exploration / mining / drilling companies, but its all global, if Citi or UBS or Barclays gets hit, the knock on effects go around the world. One thing I do know is that if commodity / energy prices continue to stay low, bankruptcies will continue to rise, not just in the companies themselves, but also the service companies like weatherford etc, banks will face more losses. Long term ( 2 years) BoI will do well ( I think), but brokers had a target of 44c on BoI, now down to 34c. Brokers seem to have no problem revising downwards their target prices. But the extreme volatility is frightening.


  • Closed Accounts Posts: 5,092 ✭✭✭catbear


    ABC101 wrote: »
    But the extreme volatility is frightening.
    Be afraid when everyone is greedy, be greedy when everyone is afraid.
    I advised a friend not to buy BofI at €6 a decade ago but they said it was cheap.
    I've been put off banks since 07 so I might start looking at them again.


  • Registered Users, Registered Users 2 Posts: 107 ✭✭userfriendly2


    catbear wrote: »
    Be afraid when everyone is greedy, be greedy when everyone is afraid.
    I advised a friend not to buy BofI at €6 a decade ago but they said it was cheap.
    I've been put off banks since 07 so I might start looking at them again.

    €6 might not of been a bad short term investment around that time I believe they went a lot higher.... unless this was when they were on the way back down from the dizzy heights of the mid teens?


  • Closed Accounts Posts: 5,092 ✭✭✭catbear


    €6 might not of been a bad short term investment around that time I believe they went a lot higher.... unless this was when they were on the way back down from the dizzy heights of the mid teens?
    Nah, this was in 2008, I was being loose with the word decade. More like an epoch ago.


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