Hi Ram I am surprised at somebody with you're experience on this site at advising anybody to invest in AIB Surely from reading all the posts on AIB you knew the valvation was off the wall? Is this the same son in law you advised not to trade up I think you dont like him;-)
I find the whole thing very fishy. Why for so long and we talked about it here was AIBs price (and traded at that price ) set at artificial levels? Bizzare that a minister had to publically make a statement about same unless and I think he is lining his ducks up re sell offs of tranches of the stock to known investment vehicles at agreed prices that are that other end of the scale to .10c. Getting the price down and then a sale won't look to bad to Joe Smuck and the general public. The government are walking on broken egg shells these days with the Irish public. I believe the dirty deed is done and by Xmas it will be disclosed re certain investment houses talking positions in AIB for pittens. BKIR I believe is not as slippery and this AIB smoking mirrors maybe be of benefit to BKIR.
I wish that were the case aclaw. I advised my son-in-law to invest in irish banks. He put 6k into BKIR, 6K into PTSB and 6K into AIB. And that was only two weeks ago. BKIR is the only bank holding ground, the other two have dropped like stones. He's down over 4K already...........Never advise other people on how or where to invest (note to myself).
...noonan has more of a vested interest in promoting AIB than boi ; AIB is the only bank remaining that has any potential of govt repayment; the big investors got in early & bought out boi on the cheap; they left the govt with only a 14% share...don't be surprised if AIB leapfrogs boi in share price..
I think it may take longer than 5 years for aib to be shoulder to shoulder with bkir. They still have a few headwinds to deal with while the wind is almost at boi's back. Bank of Ire have an advantage now they haven't had for a long time and should surely see them well placed to dominate irish banking for some time to come.
So the market finally focuses on book value. A high probability of the public getting some cash back in a year or two. A reverse split after the price hits actual book value. Litigation has no rightful place in a straightforward restructure. Give AIB five years and it may well be shoulder to shoulder with BOI. In the short term, the market's going to be rough on those holding above 4 cents.
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