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waitingscot

Where Now For Banking Shares?

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Have we seen the bottom for banking shares? Or could they possibly dip as low as March this year again.

RBS got as low as 10p. They are over 40p now.

Lloyds was as low as 30p. Now 80p.

If I bought bank shares in March I could have bought a couple of houses by now!

But where do they go from here? Are there more falls to come or will they steadily rise, even back to their former highs within a few years?

http://uk.finance.yahoo.com/q/bc?s=RBS.L&a...&q=l&c=

http://uk.finance.yahoo.com/q/bc?s=LLOY.L&...&q=l&c=

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Prices go very cheap, when sentiment towards banks was highly negative.

It is very positive now, and much potential bad news is being ignored.

I would not buy now, and might consider shorting

In the next drop, even more banks may get nationalised, so do be careful

You think RBS will be nationalised? I thought they practically were already (70% or something) except for appearance's sake the government allow them to keep pretending they are a viable business and keep paying themselves big bonuses. Why would the government want to lose face by admitting their policies failed and announce a complete takeover?

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Personally, I think the main banks will trickle along ok for the next couple of years and then grow again thereafter.

RBS, Lloyds and Barclays could be a good medium to long term bet.

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I put a small short on RBS yesterday at 44p.

(saying that, I bought them for 67p, 50p 40p, and didnt buy more when they hit 10p - I sold the lot for a loss at 43p a few months ago). The amount of government intervention is keeping these banks from going under. Its just not a business I would be proud to own, I want these scumbags to get their just deserts.

Edited by STRLondon

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They are not longer proper businesses

They are wards of the state so look to the government for direction rather than fundementals.

True enough but have they passed the bottom as far as the share prices are concerned?

I wonder what happened to people who had shares in Bradford and Bingley did they lose their money? What about holders of Northern Rock shares did they lose the lot?

It's one thing to let holders of Northern Rock shares lose their money but I can't see the government doing the same to people with RBS shares now that they already own most of the bank.

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Have we seen the bottom for banking shares? Or could they possibly dip as low as March this year again.

RBS got as low as 10p. They are over 40p now.

Lloyds was as low as 30p. Now 80p.

If I bought bank shares in March I could have bought a couple of houses by now!

But where do they go from here? Are there more falls to come or will they steadily rise, even back to their former highs within a few years?

http://uk.finance.yahoo.com/q/bc?s=RBS.L&a...&q=l&c=

http://uk.finance.yahoo.com/q/bc?s=LLOY.L&...&q=l&c=

I bought in March and am buying now.... I am buying quite a few stocks ..... I won't make squillions out of it , its just a re-investment really of the money I took out in 2007. My view for what its worth is that I do think the vast majority of these stocks will have much much higher values in ten years time (even stripping out inflation) and for some ( not many) the cost now (or certainly back in march) will be equivalent or less than yearly dividends. I will continue to buy monthly trying to spot some of the lower points along the way. I won't reallt care much if they do suffer some quite big falls.... if they don't go bust (which I suppose is a risk.. or nationalised) then I hope to do reasonably well (nothing lavish of course as I am no day trader) over the next ten years or so.

Unfortunately I have no view if you wanted to trade short term as thats about as far away from what I am trying to achieve as possible.

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I wonder what happened to people who had shares in Bradford and Bingley did they lose their money?

HE HE .... i remember Bradford and Bingley's pathetic rights issue just before they finally keeled over and died .......

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HE HE .... i remember Bradford and Bingley's pathetic rights issue just before they finally keeled over and died .......

That was the government screwing the other banks.

Govt: If a bank goes down, the rest of you have to cover the losses.

Banks: Then we have no alternative but to underwrite the rights issue and do whatever it takes.

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I put a small short on RBS yesterday at 44p.

(saying that, I bought them for 67p, 50p 40p, and didnt buy more when they hit 10p - I sold the lot for a loss at 43p a few months ago). The amount of government intervention is keeping these banks from going under. Its just not a business I would be proud to own, I want these scumbags to get their just deserts.

Let us know when you do that in future. Looks like it could've been a good buy signal, with RBS amongst the day's biggest risers at current prices. :P

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Don't know about bank shares, but I am slowly accumulating high yielding unit trusts.

I've also been doing a bit of trading in and out of the blue chips such as GSK and BP - they're nice for trading as if you make a wrong decision you can just sit it out for a while and collect the dividends.

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