I had this thought a while ago. Ireland has 3 pillar banks. Two of which are basically 100% owned by the government. If one of those government owned banks was to be dissolved. This would leave Ireland with two pillar banks. In this scenario, I could see BOI surpassing the 20B Market Cap in a few years.
I'm simply scribbling based on a projected share price of 1 euro in 2020. Like George Soros said a few days ago, you can achieve returns of over 20% annualised with volatility, but not without it. I'm not saying you'll be looking at that every year, but in 2020, you may look back and find that you averaged 22% on your BKIR each year (always assuming the 1 euro mark).
You have to admire the chutzpah of the man: Ireland "probably" needs two banks? Like, maybe we can get away with just one? Bank of Ireland for instance? Oh, OK spoilsports, monopoly is a bad thing, let's just carve up the market between ourselves and AIB then.
22% p. a. for the next 6 years? where do I sign up? Would be lovely but I reckon I need to go to the Alice in Wonderland branch office of BOI to get the forms and I thought Richie had closed it down in the branch rationalisation programme.
Only 3 weeks to go to see report on BKIR. I think there will be a positive response to the information contained in that report because I think the report will reflect the recovering economy. I know the weather has been a huge factor in terms of tourism and outside work, but since Ireland has moved away from construction driven economics to a more service/pharmaceutical foundation, the weather has only had minor impact (in terms of economic performance). And it looks like Ireland is streets ahead in attracting foreign enterprise at the moment (due to its attractive tax levels). I know this issue enrages Irelands European counterparts but to give credit where credit is due, Irish politicians have managed to retain the country’s corporate tax rates when there was a huge amount of pressure to raise them.
BOI is set to report 2013 results on Mar 3; in 3 weeks, which is just round the corner... Hopefully it will break even into a small profit the last quarter of 2013. If so, 2014 should be the turnaround year. Ross brought at .09 to .105 a few years ago. He has done very well !!
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