I took a quick out to book some profit on my buy @ 16.25 of last week and sold this morning @ 17.7. I still believe in this share and any short term weakness will be worth re entering on. Right now it may become range bound and the UK contagion is only beginning. Things are going to get horrible over here and I can see the slow down in my own companies order book already. There is a major downtown on the way for the UK economy - I am convinced of this but on flip side it will create opportunity in the markets.
Agree with merkel ,uk is dellusional !!!In thinking it can access eu market without freedom of movement of people . They will bottle it and wont trigger article 50 and if they do they be begging to get back in again .their living in a fools paradise !
The weakness in the BoI share price is a direct result of big institutions correlating them to the European bank sector and more particularly the UK banks since Brexit and hammering away. Their success has been achieved given the impressive liquidity available in the BoI share and presumably the ability to obtain a short carry from the free float that exists in the share. Do not forget they are short and the day will come when they need to cover. As has been pointed out BoI has one of the cleanest B/S's in Europe and can be expected to maintain impressive NI numbers in 2016. The impact of their UK B/S on earnings is seen as being in the 12-18% negative range and this assumes a sudden crash in the UK consumer credit base. Deutsche Bank is being fingered now on its massive derivativesbook, estimated to be to largest in the world. How they got there or why they went there is under scrutiny now, hence the management changes. Their demise is not a real credit event and at a point will be individualised and any correlation to real banking will disappear. Italian banking is under the whip right now but this is off their own doing. Instead of solving their problem back in 2008 they allowed it to fester. Now they must hope that their appeasement of the market can take place at at present yields of 8-10% or the Germans don't get their demand that shareholders and depositors take the haircut. Who knows what transpires but this is not a contagion event. There will be a solution, just a question of who pays the price. BoI at 5c....not unless the management have blown up the bank and that is not about to happen. BoI at NAV around 24c ...almost certainly. BoI at 28.5c good bet before this year is out!
Seriously... it's getting boring now your constant dribble on this. 5c is not going to happen, this is not 2008. The bank is well capitalised and in a good position. Positive results expected shortly should positively stabilise this price. While it has been a bit of a roller coaster in recent times.. your "dream" of a 5c price is just trolling now at this stage. I won't be surprised if we see 14 / 15 c as a low. If that price is reached I would expect very strong support from those in it for the long-term (including myself) and it wont stay there for long. With that said, I will be less surprised if this price stabilises itself and a new range of 18c - 21/22c is established in the near future. It's very clear to the rest of us here that you have an alternative agenda with your posts.
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