Buy RBS shares for long term punt

[paullunt1976]

Would anyone reccomend buying RBS shares with a view to holding them 3-5 years. Am I the only person who thinks they are vastly underpriced. Never bet against the banks (not in the supra-long-term anyway) is what i believe. Pls reply and give me reasons why not. TY.

 

[enragedcow]

reason: because it's a bank, and it's in Europe; if I was into investing in companies listed on markets other than the NZX I still wouldn't touch anything that was exposed to the ridiculousness of the Eurozone's finance sector

 

[debrox]

Citigroup Inc.: NYSE:C quotes & news - Google Finance

Zoom the timeline to about 2005 to present. I bet some people thought C going from 540 to 200 meant it was greatly underpriced. I'm sure they even thought to buy it and hold for 3-5 years. They'd be at 25 a share now if they did.

 

[mrfigure]

No chance. Banks are massively out of favour. Economic sentiment needs to make a concrete shift in direction before anyone will look at them. Even mr Buffett is sitting on a loss at the moment when he invested in the boa recently. But his fortune can sit on a loss with no real hit to his portfolio im sure !

 

[cr6196]

the idea that banks are massively out of favour is a bit more complex than that. in fact, if there was any idea that is popular with retail investors atm it is banks. the idea (or the arguement I have seen most often) is that because they used to trade a lot higher, they will in the future. kinda speaks for itself. my opinion, the shares may go up, they may go down, but you will have no ****ing clue why its happening. banks are unbelivably complex businesses.

 

[scose-no-doubt]

Been looking at RBS myself for a while but until I can figure out why the price has remained depressed relative to other institutions I'm not touching with a barge pole.

 

[wackypete2]

Price is still in a downtrend. They suspended dividends for now. The entire banking sector is still getting hammered.

Regardless of an individual company's financial value or health the sector trend weighs heavily on the price of all stocks in that sector.

There is really no good reason to buy right now.

Peter

 

[paullunt1976]

ok Thank you guys. Yeah i did mean a very long term hold. Think that the shares are depressed more than other banks in part because UK government has such a large holding in them. Think maybe once they start looking at getting rid of em then maybe it will signal that there is strength in the bank and it will push the price up. p.s. I do realise that euro crisis is major factor too, just think they are undervalued compared to other banks in the Uk.

 

[scose-no-doubt]

Think that the shares are depressed more than other banks in part because UK government has such a large holding in them

why do you think this is depressing the price and how big a "part" do you think this is playing? What are some other factors that could be adding to suppression relative to previous levels?

 

[mrfigure]

ok Thank you guys. Yeah i did mean a very long term hold. Think that the shares are depressed more than other banks in part because UK government has such a large holding in them. Think maybe once they start looking at getting rid of em then maybe it will signal that there is strength in the bank and it will push the price up. p.s. I do realise that euro crisis is major factor too, just think they are undervalued compared to other banks in the Uk.

You think the government will off load when price is about to go up ?.....................Mind you Brown did it with our gold.

 

[JDTRADER]

Bank Of America !

I rest my case

What you mean you don't know :-0

RBS is basically owned by GBP PLC yes US

BofA Look at share price ONE WAY and now looks to be going into receivership VERY SOON and all those that thought one of the Oldest banks in America is CHEAP will now get bugger all and are dumping shares.

If you looking at RBS then you know less than me about shares and I know bugger all lol

Find an Oil Exploration Company BUY shares at 1c and hope for Oil if you want to gamble cos Shares you should not be gambling BUT INVESTING

Safe Trading/Investing :smart:

 

[JDTRADER]

If anything with FTSE below 5,000 then you should look at good quality stocks and BUY now or on a FTSE bounce then sell later.

Just basic trading

BUY LOW

SELL HIGH

 

[JDTRADER]

Bank Of America Site Down For Third Day In A Row

Bank Of America Site Down For Third Day In A Row | ZeroHedge

 

[D Trade]

I have been thinking this myself. RBS made good profits last year and they have spun off and are refocusing their business now. The price is suppressed due to general lack of confidence in the banking industry and the government ownership.

BOA have had the settlement of losses due to subrpime mortgages which they were heavily involved with due to a poor acquisition of countrywide, so this isnt really comparing like with like. Although of course RBS has had its own problems.

I think the question is, will RBS recover and be a huge bank with stabiltiy again, in say 5 years? This will depend on the exposure to the eurozone and what unfolds there I would say.

 

[Shakone]

Been looking at RBS myself for a while but until I can figure out why the price has remained depressed relative to other institutions I'm not touching with a barge pole.

Isn't it the case that the government has 50 billion shares in RBS at 50p each (they own more shares at higher prices), and that the government wishes to sell these when RBS share price trades above 50p? And that RBS has preference to buy these back.

 

[scose-no-doubt]

Dunno mate. Have they issued dividends since her majesty invested?