RBS Shares

[Blood Lust]

Currently trading at less than 1/40th of its pre-banking collapse high.

The government owns about 80% of their shares (and I would therefore argue they would never write off this investment letting the bank go bust unless something absolutely dia happened). The bank finally returned to a profit on its balance sheet this year.

When article 50 is triggered what are your opinions on share grabbing? Then holding onto them until 2025ish to hopefully make a killing? I think people might be able to pull off 80x their investment if they guess the correct lowest point at which to buy them.

What about Lloyds TSB shares too?

If I get this right I think I might be able to turn 50k into 4 mill.

 

[MikeJ]

Why do you think the shares will go up 80x?

Assuming the Tories are still in power (which, with Corbyn around, is highly likely....) they'll sell the shares at £5. Then you're on your own.

 

[Blood Lust]

Sure, I expect them to sell their shares at about £5 or £6 per even though thats at a loss to the tax payer. Then the share price will go back down before going back up.

Actually thats a good point as no doubt they will tell us before they sell that its coming. Maybe a week or two before. I could sell everything at that point, wait for them to sell there's, then rebuy and sit it out until the 2020s.

 

[billmccallum1957]

Baroness Noakes thought it was a good idea to buy at 180.00 a few weeks ago.

If I had the funds to gamble I wouldn't mind £50K for a few months to see how they fared.

 

[LondonSW]

Blood,
I have been working myself in the Global Financial Market Division of a number of top Banks in the City, and I find it very hard to be bullish in the sector, even in the very long run.
Regulations are literally killing all GFM division making it extremely capital intensive, over regulated and seems European Investment Bank division are loosing market share to US competitor.
The Commercial Banking will have pressure from very low rate, fin-tech, further competition etc etc I find it hard from any angle to think the share can appreciate that much.
The pre-credit crunch was another world, that has nothing to do with banking now.
Said that good luck with your investment and I hope I am wrong anyhow.

 

[The Byre]

If I get this right I think I might be able to turn 50k into 4 mill.

So Pink Floyd were right! They really can fly!

There are so many share options and opportunities out there - why pick a sluggish and low moving dinosaur? The sh1t hit the fan in the Summer of 2007 when various CDOs stopped finding buyers and and the risk boys were let back into the building and discovered a whole platoon of skeletons and other derivative gremlins like synthetic CDOs lurking, walled-up behind the plasterboard! But it took RBS two whole years to hit bottom!

This is not a company for a fast buck - or indeed for a fast anything! Steady losses seems to be the new company policy!

If 50k is burning a hole in your pocket, go out and find some sensible value companies with decent P/Es and low gearing that are able to pay dividends to their owners. When you look at the ticker, you either need to see decent figures entered into the 'P/E' and 'Dividend' spaces - and not a blank - or a very good reason for poor P/E and divs, such as heavy investment in a growth opportunity.

Banks always were and always will be one giant Ponzi scheme, dressed up as a business. They actually believed up to 2007, that it was a good idea to BORROW in order to take complex side-bets, based on financial instruments that themselves were complex side-bets! (That was all that madness called synthetic CDOs!) The 2007-9 collapse only happened because the banks were so stupid and greedy, that they fell for their own Ponzi scheme.

If that doesn't tell you all you need to know about banks and their senior management, nothing ever will!

But on the other hand, the very fact that you think that you can turn £50k into £4m tells me that perhaps you could be a banker (which is, I believe rhyming slang for something, though I forget what right now!)