RE: Management incentives against a TO8 Mar 2020 11:21
Bull and bear views below both have merit. I think the bearish view will play out more in the short term and the price will drift down, as with the majority of the financial sector the sell off will be overdone and it will be a license to print money - again. Pion3r, I'm not worried about getting the bottom. Not a plug for RBS but here is some perspective to back up my thinking. RBS were 20p in old money when they were effectively bankrupt in 08/09, the UK govt bailed them out at 50p a share (old money), since then they've had massive problems with PPI, GRG, other fines and the threat of being privatised under a Corbyn govt. The world is a different place for banking I accept that but the current share price is 15p in old money. Lower than the probably going bankrupt price, lower than post brexit referendum, lower than no deal probability, lower than nationalisation possibility. Barclays and Lloyds are broadly the same so I'm happy to build a position in all of them, I'm also happy if they continue to sell off because I can buy more.
We've been here several times since the credit crunch and there's always been a spike once they're deemed oversold - this time won't be any different.