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Challenge is not so much when to sack DF but who to replace him with (who would take it). Its a tricky one. General view is that Shawbrooks the right deal and their CEO well qualified to run the combined business. What you need is someone to manage through that deal who can strike the right balance between getting a good price and not having Pollen Street walk away and wait for resolution. To do that you need to have a decent Plan B which gives enough of an option to put Lindsey under a but of pressure. Which is why Frumkin is completely shot in terms of running any negotiation. Ideally whoever is running the Co-op deal from the UBS side looks to be the perfect fit, but would probably cost too much to prize him away
Wish someone would buy us out & take us out of this misery , time will tell if this will turn into a good investment but at the moment it’s a disaster GLA
Total freefall now
Might as well do a share consolidation to fix optics of this being a penny share.
Under last fund raise price now.
At this point getting rid of the CEO will boost the share price. How long does he have?
" an ex Northern Rock"
This:
"the impact of inflated cost of deposits in the fourth quarter due to the deposit campaign in response to the previously announced deposit outflows and press speculation."
Namely being obliged to borrow from money markets at higher rates than lending is indeed what broke Northern Rock during the credit crunch helped by Peston's panic scare, as I recollect.
Metro has squeezed out a headline profit for last year somehow, presumably to quell fears of losses published in the wider markets leading to more customers shifting accounts away - that would a smart move, if the increased deposit account costs turn out to be a one off.
But either way I sold my lot and bought back the same number of shares for less, so my all time average here is now 34p and 39p for 2023/24 .. so I'll bail again between 34p - 39p but I don't have a lot put in here.
There is no hurry, the share is not going anywhere in the short term IMO.
It mean they cant short share as they cant borrow it . You can buy or sell as normal but cant short it . That show sign they decided stop at it and go up from now. .
Ok so to correct TGTDs entirely incorrect assertions reflecting the fact that he clearly does not understand either basic economics or a bank's balance sheet.
1) an inverted yield curve means that future rates are below current rates. 5 year swaps are currently 3.9%. That means new mortgages will be written at about 4.5-5% while metro is raising new deposits at 5% plus. Sensible banks swap off that risk. Metro doesn't. Its cost of funds is rising very rapidly and while the benefits from cycling its unhedged assets diminishes as rates fall back.
2) £8b refers to current accounts which is the lifeblood of metro. As per latest results in 2022 metro had £7.9b in current account balances. In 2023 that was down to £5.7b. In frankly a ludicrous fashion frumkin brought in new deposits well over base rates to obfuscate the serious outflows of low cost deposits. That just loses money
The rest of the market can see and understand that. But I suspect that is beyond you.
If you want to believe that Galinski is a genius its just the rest of the market that is stupid, that is up to you. But you should really try and up your knowledge on fundamentals. I had to call you out in october because you thought selling teh mortgage book would provide new capital for new acquisitions, when in fact it would have depleted CET1, and I had to explain to you how the bank could ink a statutory profit and an underlying loss.
All you seem capable of doing is pointing out that Cyberdoggy has (correctly) consistently suggested the share price will come down and that I am not as rich as galinski. Both are correct, but in my defence, i did not inherit a fortune from a billionaire agriculturalist from Cali
This market is now in a non-dealable state. Anyone able trade this stock on IG platform?
DF is trying to revive Community Banking hype.
Metro Bank is more likely to dispose of more assets instead of trying to raise more capital. That £3bn mortgage book will get broken up and part of it sold.
Just to sum up Chatbox1 post into plain legible English.
He expects interest rates to rise sharply despite the fact its an election year, Metro Banks profits to fall off a cliff, and there will be a run on the bank losing more than 60% of customer deposits overnight currently £15 billion not as quoted £8 billion.
You sound just like an ex Northern Rock shareholder lol!
Good luck with that scenario btw!
Quite … never fall in love with a share … she will break your heart … . When interest rates fall so too will bank profits … ;)
Hidden agenda lol, 70p or 40p, make your mind up, or just wait till it hits 20p and say his average is 20p, caught
For the benefit of Non-Partisan and rest of the tik tok generation here is the concise version:
The bank will post a material (my guess £50m) loss at the half years reflecting deposit outflows and the impact of an inverted yield curve on a (negligently) unhedged balance sheet
We will also see current account balances fall further-my guess down to £5b (from c£8b in 2022) as attrition outpaces new account acquisition
The bank will signal a need to raise more equity- probably another £150m
The share price wont tank- 30-35p reflects that level of dilution with new shares issued at 30p.
I would not sell today- the hope is that a buyer comes in around 40p. But retail investors are not going to get super rich. Metro bank is not Invidia, and Dan Fumkin sure ain't Jensen Huang. The reason i am posting is to highlight the need for all investors to demand a change in management so we have someone credible fronting up the sale. Word on street is that DF is just an embarassment, and no one will deal with him
Cost is irrelevant. gilinski’s cost, ceo’s cost, my cost, ur cost.
NVIDIA is up 250x in 11 years, it doesn’t go up that much because somebody’s cost is a certain number. 400K turns to 100million for former younger recruits who held. the stock doesn’t care.
Tuan6
Agree with some posters their behaviour is decidedly odd posting only negative comments on one share BB for several years as below.
Hidden agenda anyone?
Cyberdoggy
Posts
(All Time)
565
Member Since
22nd Jan 2021
So here we go, just 1 example of your complete utter nonsense, you've just said gilinskis average is around 40p, when you said the following in Jan and no further shares have been purchased since.......lol absolute joker, make your mind up,40p average or 70p average
TwoGood2Die
Posts: 1,957
Price: 38.00
No Opinion
Gilinksi's Share Price Average 70p22 Jan 2024 08:28
As Gilinksi has invested £103m with an average share price of 70p there is every incentive in getting the share price to recover be it through cost cutting, gaining market share, or growing through making an appropriate and timely acquistion.
He sees Metro Bank as a highly under valued growth stock within a mid tier bank market ripe for consolidation.
If people inly see negative points on Mtrep why do they still hang around here and keep posting? There is reason behind that behavior as if they sold and go never come back and complain any thing as it dont have financial benefits to them . If they buy and wait for share going higher so usually they will support company sometime can talk about directions to share but not all time negative and never intend to make share down price.
Filter all of them .
564 negative posts over 3.5 years all on one BB, Metro Bank, as anyone can check your user profile and previous comments made.
I've been both supportive and critical of the mgt team you on the other hand are acting just plain weird!
Maybe it's you who should give it a rest lol!
Give it a rest Rampy ramp of ramperton, not sure what your aim is but you're miles off it whatever way you look at it
Gilinksi average share price is around 40p.
He bought 15% or 26m circa 215p mark back in 2029 onwards and a further 103m at 30p 340m. Hence is average share price is around 40p.
He won't be wanting to sell up sub 40p that's for sure and certainly not the ii's either nor will the bank go private as I can't see the ii's accepting a low ball offer or Gilinksi upping what he's already invested, too much risk, and more difficult to sell on the bank.
Instead he will slash the cost base to align with the mid bank sector industry average and push ahead with more specialist lending offering far higher margins which is currently under serviced.
The change to shorter opening hours saves material costs and won't have much impact on customer services and those with SDB's can still visit on a Saturday, you don't need to be open on a Sunday just unecononic to do so.
Given Gilinksi's been a LTH for some time his target exit price would be closer to 2 or 3 times his average holding and he's playing the long game looking beyond the current noise.
A small reported £16m underlying loss for 2023 is immaterial once the £80m of savings starts feeding through. Metro Bank has a strong brand name and consistently ranks highly in customer surveys.
It doesn't take much effort to turn the asset liability side of the balance sheet into a profit making engine and he knows his stuff. If both The Co-operative Bank and Virgin Money can be profitable there is no reason why Metro Bank can't be turned around.
I should imagine by the next trading update the bank is back on course, the economy is not in recession, and consumer spending is still reasonably robust..The share price should recover in the coming months.
Yup 563 posts since January 2021 all negative all on the same BB and all by the same poster you...sad!
More and more clicking on to what's really going on here
Regulators had to approve the last deal and they might not be keen on sole foreign ownership which might be the reason it wasn’t taken off the market last year.
Metro Bank need to work on the narrative and more than likely dispose of the current CEO who is out of ideas. Then cut, cut, and cut some more until the bleeding stops. Then find some growth levers.
Someone will probably make a fortune out of Metro, however when there's a controlling overseas shareholder I doubt it will be the other shareholders, which is why I'm not tempted to buy a load more. My guess is these will be taken out at about 35p in a year or two with his sweetening a deal for his favoured shareholders and I along with many others will crystallise a big loss. Mistake I made was when I saw the rights issue at £5 a few years ago that those shareholders would come out ok. Fortunately I sold half at a small loss at just over 150p in Feb last year but bought more at 50p in October.