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The way I see it, perhaps it has always been the intent if the London City markets didnt like the threat of Metro Bank they had considered other options having acquired the Full UK Banking Licence, Millions of Customers, a presence in the UK to take it into Founding Fathers hands. We are dealing with the Old Guard Big UK Banks and it is in their interest to destroy any Challenger out there that poses substantial and significant threats to their territory.
Why should I sell if:
Billionaires have lost thus far £225m in the space of a handful of months off the back of the 500p
Billionaires do not become asset and cash rich without thinking about every penny and how its used
Billionaires I firmly believe HATE losing money more than you, I and other non wealthy could EVER IMAGINE
Billionaires may be facilitating taking it out on the cheap to recover some value and monies (selling at a latter date)
Billionaires are more shrewd than you and I believe
£550m was pledged with over 60 Accounts on the MREL £300m sought at 2% more than originally. Was this a backdoor entry to force the boards hand and work a buyout in slower time?
In March 2020 that share price at 100p, 200p or whatever will be measured against 12 month highs. Each month that we get closer to a 12 month higher in the region of 200-400p will be buyout territory I suspect.
Cud - agree on your points.
Shorts have had it very well here. I do expect the SP to drop a bit in upcoming weeks with more uncertainty - but we might also see an intense rise if/ when shorts start reducing.
Is there potential here? Abso-lutely.
Metro will surprise us all many more times and we will jump back in when news arrives.
That is your decision and anyone of us Private Investors have little influence.
However I have seen this on PETS, OCDO, AAL and FOOT.
This has been growing.
This has been under immense attack as too 2/4 stocks above.
I will leave it here as I can afford to leave it.
Each to their own but an avalanche effect is taking place here with Private Investors like you and others feeding the Hedge Funds.
Id rather not.
Monkshood - I strongly believe Metro Bank will come good.
I perceived excellent value at 500p 400p 300p 200p 100p.
It is not my fault Mr Market and Hedge Funds do not believe value is near 500p in a cold winters day.
Hence unlike what some have observed I am saying hero or zero because I believe, based on what is known (incl. FCA not being SFO in terms of seriousness) that we are under sustained attack.
Look at Sophos being bought out by Private Equity.
Look at Greene King.
Look at Merlin Entertainment.
The Banking Sector - Metro Bank looks ripe for Predators / Buyer because I still feel with 1.8m customers, 70+ Branches and rated no.1 customers there are tangible values.
And YES the Book Value may not be 700-800p.
But for me 500p is a fair value and so did a few guns.
That's my stance. Selling now is pointless for me as I have evaluated other market options.
One approach or Equity Player - 400p in a heartbeat.
We sold a part at a loss. It happens to any seasoned investor.
Metro has potential for a big recovery but several key points that still are problematic/ unknown.
There is a scenario that many here don't want to discuss but recent moves suggest might be likely: VH taking it private in one form or another for pennies, and benefiting from the SP having crashed so much in recent months with minimal action to help raise it. Shorters would made his job easier - why not let the SP drop drastically if you want to buy something yourself or with your colleagues?
- Takeover potential: recent rumors suggest yes. Bidding war could help. Nothing confirmed nor announced as of yet.
- Activist investor: Elliott bought in recently and that's exactly what they do. Will they do it here, shake things up, double/ triple the SP? Who knows.
This recovery play has more unknowns than many thought and the BOD's inaction to contain the sharp drop has been baffling to say the least.
There is no shame in cutting losses and jumping back in when good news or prospects make the dynamic different.
The BOD has been incapable of reassuring investors - PIs should not be forgotten even though they are "small fry" - and this does not sit well when there are many other opportunities to put capital to work.
That being said, and RNS might drop today - or not. If it does, we'll jump back in and see where it goes.
You need to look at it as if you were investing today, would you invest the amount you have tied up in metro if you were to do that? Are there other, better opportunities out there?Would more diversification be better?
I sold out most of mine before the second bond issue, so took a big loss, however I was then able to recover some of that last Friday using the funds released, whilst metro has not really gone anywhere in that time. I am still holding some in metro as I do think that it has the potential for the long term, but it is a much more proportionate holding relative to risks now.
Yep cuddothisnow. Everyone has their own approach and own reasons for doing this I know people who just lock money away and have no interest in share price but just look at dividend payments.
There are a lot of people who try to buy right at the bottom and sell right at the top and it’s impossible it just can’t be done with any consistency to make money.
Cuddo, true it is only cash but it still hurts to lose it.
Mark I can wait years 99% here cant
Also its only fookin cash.
Like you say each to their own but not sure about the hero or zero approach ( tried that once it didn’t end well)
No one ever lost money taking a profit :)
AA each to their own
There is always a choice, it always annoys me when people say " its gone down so I'm locked in"
This isn't a game you play lightly ( though some think it is ) using these strategies you may be lucky for a while but sooner or later you will get bit up the arse, always think your plan in advance, no one forces you tl press that buy button, don't play with money you can't afford, its stupid.
@ dogger - profit plus original stake. I’ve got two separate trading accounts one long term strategy that I use this approach plus one that is more of a pocket money account.
I must admit cud that is why I'm still here. There are some big money men in this who invested millions at 500p. That has to count for something.
Vernon Hill may want to take it private but him and his associates are down -£225m of £375m needs 150% rise to get their money back! I doubt he would be forgiven-so payback big moves coming IMO
Ariel I don't think cud and I have much choice really. We're both down mega amounts and I do somehow feel that this is way oversold. Surely it has to be?
Ive written off the substantial sum
Thats the difference.
Rarely do I stick but billionaires must HATE LOSING REAL MONEY more than I assume...
When you say roll all profits into next opportunity do you mean just the profit or your original stake and profit?
Hero or Zero is a choice but not a logical one,
Ive chucked the occasional few pounds on a punt using that logic, not sure I would do that with a substantial amount.
My usual strategy ( and I broke my own rules in metro) buy shares in company that looks oversold or already recovering set limit sell order straight away and take usually 10 - 20% profit normally closer to 10%. Roll all profits into next opportunity and repeat I’ve made a couple of bad decisions that have knocked me back I’m just hoping this isn’t another :D
Disagree - take no ones advice.
Do your own thing.
Its hero or zero for me.
you'll change your mind if the share goes south... and each time it does (if it does) you'll wish you sold at the hgher price, even if at a loss.
Imust have traded this 50 times since I first bought in at £11 and my average is now 235. still in the red but if i hadn't traded it buying AND selling, i'd be 85% down adnd even now I'm wondering if i'll get into the black with this one!
Insufficient news being released to really give a recovery... and even the Q3 is an uncertainty, in spite of what the rampers say. will hope to see something releaseed as guidance before results but you'll have to be quick on the trading button, just in case.
For all the thousands of optimistic 'burn you shorters' nonsense, this is still very much a 50/50 bet and it's only being in the red that keeps folk here (and the drops attract more mugs into becoming lthers!)
nothing guaranteed... in spite of cuddothisnow's rampy/trolly posts... still could go either way, each and every day!
dogger69, you need an exit strategy just like Mark@1973. You have to be able to accept break-even or even losses in some circumstances but you need to devise an exit strategy and stick to it and broaden your range of companies, sectors and mix of growth/yield stocks.
Thing is I don't just want to get my money back otherwise I've risked many thousands only to be happy at breakeven. That seems ludicrous to me!