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Galinski purchased near 10% for a steep premium so there was a belief that it can work and it all looked good if Metro Bank could convince the regulator to approve AIRB.
Not only did they fail that, but they also caused a panic by announcing they need to work on the AIRB application when they had not even had the official confirmation in writing. The next potential catalysts for the share price recovery are
- New CEO
- Sale of the Mortgage book to reposition as a specialist lender like Shawbrook
- AIRB application approval
- Easing of capital regulations for smaller banks
Then again nothing could happen and it folds into one of the bigger Banks with regulatory concessions.
Well I’m buying them blink and they’ll have been a mirage. This receding price line is over the top now, I mean come on back to mid 30’s without breaking a sweat and we see where we then go from there! IMHO DYOR
"Chatbot2; Do not see WHY gilinksi has kept Frumkim on in his role ? With what has happened to Metro under his watch"
Combination of what Westang said and i said. i,e, Frumkin put Galinski ahead of alternative bidders throughout the last year because Galinski was the only person who might keep him in role. In return Galinski got to buy in at what seemed a knockdown price- not so sweet now though
The issue now is that it isn't easy to replace him. Galinski not (yet) on the board. Chairman in particular hugely compromised. Firing DF might put the bank back in the regulatory spotlight and expose possible misconduct all round
But not firing him gets in the way of a deal. Maybe they need to do the old Lenin trick and just bring Frumkin out for special occassions- but after last weeks performance they best tell him not to open his mouth. But Galinski then needs to pull his finger out and do the negotiations. At 40p he's not too embarrassed and we might end up with a half decent bank.
Hence, patsy.
I think frumkin didnt get the job or keep it. through ability. He was used initially by tne founder (a good friend of his), to manage reg fall out, and since it looks like hes been used by gilinski to do his capital injection, for discounted shares move.
Chatbot2
Do not see WHY gilinksi has kept Frumkim on in his role ?
With what has happened to Metro under his watch
"Presume gilinksi knows what hes doing. Frumkim was his patsy, to get capital raise done. Wasnt frumkin mates with founder? Was founders patsy?"
I think the link was old CEO (both at NatWest when that bank's shareprice collapsed from £40 to £2.50); So between them they have outdone Fred the Shred!
Presume gilinksi knows what hes doing. Frumkim was his patsy, to get capital raise done. Wasnt frumkin mates with founder? Was founders patsy?
Ironic, metro were many good profits when lending outside regulation.
"I am agreeing as CEO should go as he have this mess and can't fix it . Time for change and correction its direction."
Look! Even Dori is on board!
Thought I would pop in and see how good old Metro was up to today, OH dear another new low
I am agreeing as CEO should go as he have this mess and can't fix it . Time for change and correction its direction.
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