HBOS a good investment?

[kinboshi]

ok, sigh


some very general thoughts


- we're in my opinion in the early-mid stages of a bear market.

- why? the economic news is getting worse. I think a recession is here-ish. Pain is yet to come from personal and corporate bankruptcies, and credit card problems given high levels of borrowing

- so long long long term you may be right, markets will turn. However its probably too early

- HBOS is an aggressive bank. It has high market shares in aggressive lending areas such as self certificated mortgages, unsecured lending etc etc.. its a comparatively new entrant to its markets during a big growth phase when economies were storming..its not a big leap of faith to suggest it may suffer more from bad debts than some more conservative competitors

- However it did raise capital from its shareholders in the last year. This is good long term but short term hangs over the share price...buyers are full up after the rights issue


Personally I would steer clear. You're right, the "value" is far better than it was in basic share price terms but the forecasting of the next two years is really tricky.

Wait it out

I would particularly avoid Barclays (thinnest capital ratios of the lot).

I might punt on smaller building societies with real risk captial (ie if you lose it its not the end of the world for you)

Thank you Oracle.

What about QQ though?  Worth investing in?

[Graham C]

Tightend to create the Blonde Investment Club

Who's QQ?

[boldie]

Tightend to create the Blonde Investment Club

Who's QQ?

QQ? Did they go bust ages ago?..Folded in 2004, I believe.

[phatomch]

Tightend to create the Blonde Investment Club

Good idea, lets get a group of us to stay stick in £25-50 per mnth, then if we have say 15-20 of us its a nice little amount each mnth that we can look at investing in different shares or whatever, any profits we can look at re-investing / staking or maybe a little to charity and if we dont make anything we hav'nt done to much each.

[jizzemm]

Not a bad idea at all....

[phatomch]

what you reckon then Tighty you wanna be our "leader" if it's of interest to a few blondes ?

[TightEnd]

what you reckon then Tighty you wanna be our "leader" if it's of interest to a few blondes ?

maybe, of course.

Investment clubs are fine in principle. I'd need someone else to do the legwork though, I'm a bit pulled out.

I'd want collective decisions too, I don't want any potential recriminations for duff investments etc

[phatomch]

of course it would have to be a group decision but it's nice to have someone with a good idea in the chair. I would be happy to help with any leg work with the right direction.

Any other blondes up for this ?
 when i get chance ill start a thread for any interested people

[AndrewT]

Tightend to create the Blonde Investment Club

Good idea, lets get a group of us to stay stick in £25-50 per mnth, then if we have say 15-20 of us its a nice little amount each mnth that we can look at investing in different shares or whatever, any profits we can look at re-investing / staking or maybe a little to charity and if we dont make anything we hav'nt done to much each.

Some of us have started an Blonde investment club already.

http://blondepoker.com/forum/index.php?topic=35065.0

[phatomch]

im already in that one

[Graham C]

I don't mind helping out, I have a bit of free time for 'stuff'

For the investment clubs I've seen before, people put forward various proposals each month as a suggestion to invest in, then it's voted on and the majority gets acted on.  I guess setting up (another) seperate child board would be the thing to do (maybe an idea to have it private).

Anyway, I'm obviously up for it and am willing to help out.

[kinboshi]

I don't mind helping out, I have a bit of free time for 'stuff'

For the investment clubs I've seen before, people put forward various proposals each month as a suggestion to invest in, then it's voted on and the majority gets acted on.  I guess setting up (another) seperate child board would be the thing to do (maybe an idea to have it private).

Anyway, I'm obviously up for it and am willing to help out.

I'd suggest a separate forum, private access and completely separate.  A single thread on here for general updates, news and for people who want to get involved to ask questions, etc.

I don't it takes too much time to get a basic, simple forum up and running.  It's only when it's a very busy and complicated place like blonde when it gets a bit more tricky.

[neeko]

Going back to the original question, I would say that a year is a bad time period for holding this investment, at the moment I (in my unqualified assesment) would either buy it as a gamble over a 1 month time frame as it could easliy go up or down 10% on any particular day.  As long as you buy it as a gamble and not an investmenet then this could work.

Otherwise I would "dollar cost average" into various bank stocks over the next year or so as either in 10 years time they will be up a lot or the world emonomy is so shot we may as well live in caves anyway.

[boldie]

If Tighty is up for it I'm in.

[mondatoo]

If Tighty is up for it I'm in.