Sorry to be a vulture but should i buy shares in NR ?

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#1
Hi Guys

In the UK the No-rther-n Ro-ck ( dashes to fool the bots ) bank shares are in decline over recent financial problems, should I buy shares in hope of an upturn ? any finance gurus out there have any ideas ??
I Got around 2K to play with

Rich
 
#2
Not sure you'd make a killing if they get brought out soon, if they don't and get out of their current hole, the great british public lose their memories (as is the norm) then I reckon you could be onto a good thing.
 
#4
You have to answer one question "Will they survive"?

If you thinhk they will then buying shares will be a good bet. If you think they won't then..........

Personally I think it would be a good bet. If they get bought out the shares will go up again, and if they stick it out on their own they will go up again, only slower.

However, I should point out that I am a geordie and have been brought up to believe that the N Rock is like the ravens in the tower of london. If it ever disappears all ten plagues will descend on the north east at once!
 
#5
Hmm , Not shure about this , I get 5+% if i leave the cash where it is, and I have no imediate plans for it , there shares have droped massivly , over 30 somthing percent !! so if i buy in and ther go up sat 10% in a few months i'm on a winner , i think :roll:

Rich
 
#7
Chart it.

Then use this test... its the only one that works.

Does the line start way down low on the left, and end up way up high on the right? Then buy it. Anything else and stay clear.

NRK starts on the left way up high and ends way down low on the right. Leave that lil sucker alone. :)
 
#8
Rich, knowing when to buy is a big dilemma. Buy too soon and your investment will still be going downwards. The further down it goes before it bottoms out, the further up it will have to come before you break even. Buy too late and every man and his dog will be in there buying with you and you'll have missed your opportunity. Timing is key.

In situations like this previously, I have seen people make a killing and others lose the lot. Remember, share prices are falling because the present shareholders are getting rid. Do you know better than they do? My advice is only jump in and do this if you can afford to lose the £2k if it all goes belly up.
 
#9
Hi John / Mark
Thanks for that , your right , but when is the time to buy , if at all ? the BoE has said it will stand by them and they look good for a buy out too ! , ive looked at lots of investment sites and theres no clear picture as yet

Rich
 
#10
but when is the time to buy , if at all ?
LOL .... if we knew the answer to that Rich we wouldn't be sitting around here. We'd be lounging around on our luxury yacht clicking our fingers for a bevy of gorgious girls to bring us another Jack Daniels. Let's face it, if it was easy we'd all be doing it. :wink:
 
#11
Err As it happens

LOL . We'd be lounging around on our luxury yacht clicking our fingers for a bevy of gorgious girls to bring us another Jack Daniels. Let's face it, if it was easy we'd all be doing it. :wink:
MY Yacht is currently in skegness , and a bevy of bints bring me larger As i require !!

HEHEHE :grin:

Rich
 
#14
Hi Guys

In the UK the No-rther-n Ro-ck ( dashes to fool the bots ) bank shares are in decline over recent financial problems, should I buy shares in hope of an upturn ? any finance gurus out there have any ideas ??
I Got around 2K to play with

Rich

Eewwww!!!!! I take it that they are a bank and caught up in the sub-prime mess. Eewwwww, I wouldn't, but maybe..... lots of maybe!!!!

If our federal reserve drops the interest as the stock markets "HOPE", then there should be a quick boost in the financial stocks, the stock market is hoping for a 50 basis point drop. If the feds do anything less, then I think that the stock markets will not do much in a rise. I'm not sure if a 25 basis point decrease would really impress the markets. If the feds do nothing with the prime rate then just I think there will be a small sell off. Financial stocks would sell off even more if the feds don't come through.

If you want to get a quicky increase you should buy in today and hope our Federal Reserves drops the rate 50 points, the stocks should do a quicky increase.... then sell it!!!!

Other than that, eewwwwww, stay away from it. Our federal government has already dumped billions upon billions of money into the system just to provide liquidity. Probably good money after bad.

Keep in mind, I AM NOT a financial expert, but a gut feeling.

p.s. since it is the u.k. the markets are probably closed and you would have to do this first thing in the AM before the federal reserve has their little meeting here in the USofA.
 
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#16
Tnx Guys
I'm gonna sleep on it

Just a thought , i need a new heating boiler and that will be ( fiitted ) Just under 2K, maybe i just keep my a**ss warm and keep out of finance

Rich
 
#18
What have they got? The mortgage book. This is getting less valuable to them the more money they borrow from the Bof E (to cover all the withdrawels). How will they write more mortgage business in the future??
The only hope is if someone buys the mortgage book ( at a deep discount). I heard a calculation of 170p

A good Bank ruined by greed and yet more greed!
 
#19
Eewwww!!!!! I take it that they are a bank and caught up in the sub-prime mess. Eewwwww, I wouldn't, but maybe..... lots of maybe!!!!
A building Society, they do "bank" accounts but specialise in mortgages.

Unfortunately, due to the sub-prime mess they had to borrow money from the bank of england. This led to a "run on the bank" and on Friday and Saturday morning the customers withdrew over 2 billion pounds.

This was just the customers who have "real" accounts with them. many more have internet only accounts and the servers couldn't cope with the requests to withdraw money. Many others have Postal Only accounts and the postman hasn't delivered the requests to withdraw money from them yet.

Before the end of the week a lot more than 2 billion will be withdrawn!
 
#20
What have they got? The mortgage book. This is getting less valuable to them the more money they borrow from the Bof E (to cover all the withdrawels). How will they write more mortgage business in the future??
According to the BBC they borrowed the money to lend out for mortgages not to pay account holders who wanted to withdraw money.

They actually got a good deal as the BoE is charging less interest than they would have been charged from the other banks.
 
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