In my eyes there are 3 types of investors: High Risk, Medium Risk and Low Risk.
I knew when I got into BOI months ago, that I was getting in with the High Risk investors. I knew there would be a time when the High Risk investors would start to sell and when they did, I would have to evaluate why they are leaving. Is it because BOI was a bad bet and they are cutting their losses or was BOI a good bet, and they are taking profits to fund their next endeavor.
I see BOI moving into the next phase, where the Medium risk investors will join our ranks and maybe a few Institutional Investors, at least the ones that are not restricted by the credit rating of the companies they are allowed to invest in. This probably means an end to the 150 -200% share price increase per year, but still a better than average returns with the company focusing on buy-backs and getting its share price above the Euro mark.
Once BOI gets its investment grade credit rating back and starts paying a regular dividend, I see the Medium risk investors leaving, to be replaced by the Low risk Institutional Investors that focus on solid companies that pay a consistent dividend.
My plan is to watch my risk level in BOI change from High to Medium to Low and that progression will be revealed by the “big guys” are in our midst.
3 years ago BOI was trading at 0.08.... many investors thought it was a gamble stock... today it is profitable.. Another speculative stock, more so than BOI and AIB was a spanish bank - Bankia.... Bankia was selling for pennies to the dollar,
BOI and AIB are much better banks than Bankia.. Bankia was created yesterday... s short years ago....
BOI was created 1783..... AIB was created 1825....
Radar, I assume money or wealth will do whatever they consider best, but personally I intend to continue as always to post relevant and hopefully usefully for others. I shall also respond, as evident on this thread, with respect for forum norms even to vulgar outbursts which seem unfortunately to be considered acceptable. Enough said. DN
Judging by some of the posts here over the last couple of weeks there must be a few guys hurting this week. I bought BoI at just over €1 six years ago. I thought in 5 years I would be a happy man. Unfortunately share buying is unpredictable so I still have 4 years left In my second 5 year plan.
However, I am now averaged down to mid 30's and have 3 x the number of shares I started with. The speed of the price increase over the last couple of week caught me by surprise and to be honest scared me a bit. I want Boi to behave like normal company again where visible progress and good management is rewarded with a steady increase in share price over time. While up 20% down 18% in a month is a traders dream it's definitely not a long term investors.
I'm not sure what WR sold at but 32..33c I expect. I am taking this to be the base price for now. It may go lower for a short time but I believe 32..33 will be where it will settle and progress from. So, this evening I have sold out my very disappointing NTR holding (note to self.. never buy on the grey market again, include AIB in that) and on Monday will take the opportunity to average down a cent or two again.
I do this in the full knowledge that I may experience more pain with these share but with the certainty that I will more than double my investment in time. The "time" here is elastic. It's a pointless exercise predicting the price in 6 months never mind a year untill BoI starts behaving in a normal way.
Last October I believe AIB was .17c the swim to 8c or is a couple of weeks ago . People buying AIB now will in afraid get stung HARD! Remember BOI was 13cent last year now will balance around .28-29 BUT last see first Q results as really positive and them a REAL rise in the SP relevant to what bank is worth and with an eye on growing prospects . As long as you have chips on the table you're still in the game ! Relax.
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