Converted Lurker Posted July 16, 2008 Share Posted July 16, 2008 a few of our regular posters (who dabble in such matters) thought that perhaps bank stocks now represented a good buying opportunity a few days back, since when another 10-15% has been wiped off their values. You'd think they couldn't get any lower wouldn't you? Other than the great depression has there ever been a time when such shares collapsed so spectacularly? HBOS (LSE:HBOS.L) Last Trade: 230.00 p Trade Time: 12:17PM Change: 30.00 (11.54%) Prev Close: 260.00 Open: 262.50 ROYAL BK SCOTL GR (LSE:RBS.L) Last Trade: 153.30 p Trade Time: 12:18PM Change: 14.00 (8.37%) Prev Close: 167.30 Open: 169.00 BARCLAYS (LSE:BARC.L) Last Trade: 244.00 p Trade Time: 12:19PM Change: 16.50 (6.33%) Prev Close: 260.50 Open: 264.00 LLOYDS TSB (LSE:LLOY.L) Last Trade: 257.75 p Trade Time: 12:19PM Change: 15.25 (5.59%) Prev Close: 273.00 Open: 273.25 BRADFORD & BINGLEY (LSE:BB.L) Last Trade: 47.00 p Trade Time: 12:18PM Change: 1.75 (3.59%) Prev Close: 48.75 Open: 47.00 Quote Link to comment Share on other sites More sharing options...
mrmuesli Posted July 16, 2008 Share Posted July 16, 2008 (edited) a few of our regular posters (who dabble in such matters) thought that perhaps bank stocks now represented a good buying opportunity a few days back, since when another 10-15% has been wiped off their values. You'd think they couldn't get any lower wouldn't you? Other than the great depression has there ever been a time when such shares collapsed so spectacularly?HBOS (LSE:HBOS.L) Last Trade: 230.00 p Trade Time: 12:17PM Change: 30.00 (11.54%) Prev Close: 260.00 Open: 262.50 ROYAL BK SCOTL GR (LSE:RBS.L) Last Trade: 153.30 p Trade Time: 12:18PM Change: 14.00 (8.37%) Prev Close: 167.30 Open: 169.00 BARCLAYS (LSE:BARC.L) Last Trade: 244.00 p Trade Time: 12:19PM Change: 16.50 (6.33%) Prev Close: 260.50 Open: 264.00 LLOYDS TSB (LSE:LLOY.L) Last Trade: 257.75 p Trade Time: 12:19PM Change: 15.25 (5.59%) Prev Close: 273.00 Open: 273.25 BRADFORD & BINGLEY (LSE:BB.L) Last Trade: 47.00 p Trade Time: 12:18PM Change: 1.75 (3.59%) Prev Close: 48.75 Open: 47.00 HBOS share price has been a bloodbath this morning. Interesting posts on III suggesting there share price has been manipulated to be kept at £2.75 until the rights issue (deadline Friday). As most peoples cheques are now in the post the carnage has begun Edited July 16, 2008 by mrmuesli Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted July 16, 2008 Share Posted July 16, 2008 the FTSE is getting pounded like lauriejohn at a gay bikers weekender. Quote Link to comment Share on other sites More sharing options...
Matt Bear Posted July 16, 2008 Share Posted July 16, 2008 The big US banks Merrill, CitiGroup and JPMorgan are all due to release results at the end of this week. Consequently buying (or shorting) banking stocks at the moment is a bit of a gamble, but there is certainly the potential for new lows to be reached come the end of the week. Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted July 16, 2008 Author Share Posted July 16, 2008 HBOS share price has been a bloodbath this morning. Interesting posts on III suggesting there share price has been manipulated to be kept at £2.75 until the rights issue (deadline Friday). As most peoples cheques are now in the post the carnage has begun Yep sounds about right eh? Quote Link to comment Share on other sites More sharing options...
OLDFTB Posted July 16, 2008 Share Posted July 16, 2008 HBOS share price has been a bloodbath this morning. Interesting posts on III suggesting there share price has been manipulated to be kept at £2.75 until the rights issue (deadline Friday). As most peoples cheques are now in the post the carnage has begun All they have to do is cancel the cheque! Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted July 16, 2008 Author Share Posted July 16, 2008 The big US banks Merrill, CitiGroup and JPMorgan are all due to release results at the end of this week. Consequently buying (or shorting) banking stocks at the moment is a bit of a gamble, but there is certainly the potential for new lows to be reached come the end of the week. but you think they've reached a new low and must bounce back, then realise there's just too many other variables at work in such a ba5tardised market. Any of these could go pop, too big to fail, too big to save? IMVHO there's only one or two T/O opportunities such as Santander/A&L. Failure of others is surely a cert now? If B&B suddenly dropped to ten pence, HBOS to 2 quid, RBS to a quid.... would you buy? No different to those coming unstuck buying NR in the death throes...what's happened there BTW, did an agreement get reached with shareholders? Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted July 16, 2008 Share Posted July 16, 2008 RBS getting hit harder than a bailiff at a gypsy park. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted July 16, 2008 Share Posted July 16, 2008 its going to blow into the 4999s !!! Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted July 16, 2008 Author Share Posted July 16, 2008 the FTSE is getting pounded like lauriejohn at a gay bikers weekender. not an image LJ will thank you for....or do we have different meanings for the word pounded? I'm thinking Marsellus Wallace in Pulp Fiction Quote Link to comment Share on other sites More sharing options...
R K Posted July 16, 2008 Share Posted July 16, 2008 (edited) US financials - "bullish" percent reading is on the floor. DOW index is not far behind it. These are incredibly low sentiment readings. I have no interest in buying any individual bank shares. Risk is ultra high. However, when sentiment changes it will lead a bounce. It is inevitable imho. Edited July 16, 2008 by Red Kharma Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 16, 2008 Share Posted July 16, 2008 The banks will only bottom out when they reach there true value of 0p. Quote Link to comment Share on other sites More sharing options...
R K Posted July 16, 2008 Share Posted July 16, 2008 not an image LJ will thank you for....or do we have different meanings for the word pounded? I'm thinking Marsellus Wallace in Pulp Fiction "I'm gonna get medieval on yo' ass" Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted July 16, 2008 Author Share Posted July 16, 2008 US financials - "bullish" percent reading is on the floor.DOW index is not far behind it. These are incredibly low sentiment readings. I have no interest in buying any individual bank shares. Risk is ultra high. However, when sentiment changes it will lead a bounce. It is inevitable imho. that stockcharts site is ace isnt it? You say inevitable and I agree, but we could be 'locked into' a bear market for a decade or more. IMVHO you'd have to treat banks like junk and buy with the knowledge (eyes wide open) that it's a complete punt. You can't even have the confidence of eras gone past of "its a bank, therefore it can't fail" and buy knowing you're in it for the...ahem...long term... even if you take a small short term loss. Am I making sense? For example' let's say I buy 30K of RBS now, (who IMHO got their s.h.i.t. together well over the past 3 months by stealing a march with their rights issue etc) I buy thinking "so what, even if they fall to 100 pence per share at some stage they'll recover to their previous high of 700 pence surely? Even if they only recover half of that inside 5 years I'll double me money, happy days...." Quote Link to comment Share on other sites More sharing options...
DrGUID Posted July 16, 2008 Share Posted July 16, 2008 July 15th's Short View has a focus on bank stocks: Short View A further halving of stock prices therefore seems possible . Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted July 16, 2008 Share Posted July 16, 2008 Quite a wide spread of performance on banks this aftenoon lloyds up 1.3% but RBS down 5%. Longer term (weeks, months?!) theyre all screwed though imo. Quote Link to comment Share on other sites More sharing options...
Willy Weasel Posted July 16, 2008 Share Posted July 16, 2008 I'm finding it very hard not to get stuck into HSBC and Lloyds TSB shares as I think they are massively oversold. Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted July 16, 2008 Author Share Posted July 16, 2008 I'm finding it very hard not to get stuck into HSBC and Lloyds TSB shares as I think they are massively oversold. it's screaming out buy 'em and yet..... Quote Link to comment Share on other sites More sharing options...
slurms mackenzie Posted July 16, 2008 Share Posted July 16, 2008 I'm finding it very hard not to get stuck into HSBC and Lloyds TSB shares as I think they are massively oversold. I'm holding onto my LLoyds, I sold out of my RBS a long time ago £4 at quite a loss i must admit. Quote Link to comment Share on other sites More sharing options...
Paddles Posted July 16, 2008 Share Posted July 16, 2008 (edited) it's screaming out buy 'em and yet..... Was having this conversation with a colleague today, "maybe I should buy X or Y", he said, "they've gone down 90% in the last year". Yes, but they can still go down another 90% over the next year, can't they......... Edited July 16, 2008 by Paddles Quote Link to comment Share on other sites More sharing options...
FortuneFTB Posted July 16, 2008 Share Posted July 16, 2008 I heard people saying Northern Rock shares where a good buy after the share price dropped... How did that pan out ? I also remember work collegues buying loads of Railtrack shares when they where at about £3.50 after falling from nearly £20 on the basis that they would go back up to £20... How did that pan out ? and so on. I'm no expert but I think if a company has lost 90% of its value people far smarter than me are selling them and not buying. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted July 16, 2008 Share Posted July 16, 2008 I'm finding it very hard not to get stuck into HSBC and Lloyds TSB shares as I think they are massively oversold. I am of a similar mind. These are the only 2 UK banks where I would even consider placing my STR fund. Before this kicked off, I did have quite a lot in Barclays, but frankly BARC is too risky to even deposit in, Quote Link to comment Share on other sites More sharing options...
jonpo Posted July 16, 2008 Share Posted July 16, 2008 (edited) I bought some RBS less than a week ago ( a very small amount mind and complely unlevered (I have a current account with them for 20 years and so my rational was that by buying acouple of shares I might pay more attention to them in case of a possible run....) I have lost over 25% of the capital already!!! NEVER CATCH a FALLING KNIFE wait for the dust to settle and the momentum to come off before buying..... totally angay at myself for breaking my own rules and buying at a low... very bad practice.. Edited July 16, 2008 by jonpo Quote Link to comment Share on other sites More sharing options...
abharrisson Posted July 16, 2008 Share Posted July 16, 2008 I'm finding it very hard not to get stuck into HSBC and Lloyds TSB shares as I think they are massively oversold. Me too... I am going to have to get round to looking at what happened to bank profits during the last crash and recession and to their share prices to remind myself of how low they can go and equally how low as a yield the div can go. I am getting more tempted by the day by the prospect of 10% dividend yields plus a doubling at least of my money.... maybe the best thing to do will be to spread it around and dribble it in..... they may well go lower, but then again I am miles and miles away from thinking any will go bust.... the very worst that will happen is that they struggle are snapped up.. but I seriusly can't see that happening with the big 5. Quote Link to comment Share on other sites More sharing options...
jonpo Posted July 16, 2008 Share Posted July 16, 2008 (edited) Me too... I am going to have to get round to looking at what happened to bank profits during the last crash and recession and to their share prices to remind myself of how low they can go and equally how low as a yield the div can go. I am getting more tempted by the day by the prospect of 10% dividend yields plus a doubling at least of my money.... maybe the best thing to do will be to spread it around and dribble it in..... they may well go lower, but then again I am miles and miles away from thinking any will go bust.... the very worst that will happen is that they struggle are snapped up.. but I seriusly can't see that happening with the big 5. well exactly the big 5 make a criminal amount of money... but I just expect the speculators to short them into the ground... in the fire sale of the HBOS stick there are certainly many fortunes to be won and lost... one thing that can be certain though is that with the amount of capital which is dispearing in the financial sector there will be bargins to be had at some stage... today though its all about burning the shorts !! Edited July 16, 2008 by jonpo Quote Link to comment Share on other sites More sharing options...
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