.. up 327 pts.. healthy rebound.. if this cycle continues to ftse & dax you may see bkir at 0.36 - 0.367. on thursday / Friday.. bkir has done much better that other UK banks like lloyds or. Spain. banks like Santander and bbva...
What happened the last time the bank stood at 16BLn ? A population of 3.5 say four million two banks in oporation would still need to be doing an awful lot of business to maintain that valuation. Interest rates rising will pose a problem for those with new mortgages and the economy - but without a rise in rates to reward their depositors how is the bank going to raise finance in order to lend.
with 32 billion shares in issuance, the share price cannot go anywhere fast. currently, the companies valuation goes up a half billion for every 3 cent rise in share price. so, to go move from .35 to .50, BOI's valuation will have to go up by 5 billion, that will take a while.
This stock, as usual, rapidly dropped on supposedly bad news first from Greece and then from China, and as usual, now that the storm has passed, it's reluctant to recover. I guess it's waiting for the next pretext to drop further, when in reality it should be trading at around 45 - 50c. When are the manipulators going to stop conning the small investor?
More positive sentiment towards Bank of Ireland today from Davy stockbrokers. (RTE brokers roundup).
"Bank of Ireland Increasing momentum in UK mortgage market; Bank of Ireland further extends intermediary distribution September 2 2015 | Diarmaid Sheridan | Morning briefing | The Bank of England’s July Bankstats point to increasing momentum in the UK mortgage market with both approvals and gross lending increasing. BOI’s new intermediary mortgage partnership further broadens its distribution capability and reinforces our view that its UK operations will be an important source of loan growth over the coming years."
This was Cantor Fitzgeralds view of AIB on 7th August 15.7th August 15. RTE broker roundup Cantor Fitzgerald.
"The bank’s equity still remains mispriced at 5x TNAV, compared to its European banking peers average at 1.6x (BOI at 1.4x). Management gave no clear indication when the Irish Government will reduce its stake in AIB, and we still forecast this to occur mid-2016 following the Irish general elections in April 2016. "
I'd say this view is still valid. On balance I'd say it will be good for Bank of Ireland, It will reassure the international investment community that Ireland is finally getting to the end of the banking crisis.
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