HBOS a good investment?

[byronkincaid]

love to be involved, happy to volunteer to do stuff

http://www.fool.co.uk/Investing/guides/Investment-Clubs-Part-I.aspx

[nirvana]

I would love to be involved too and happy to be a working member and undertake my fair share of research.

Spent a year day trading a while back so have some experience

[mondatoo]

If Tighty is up for it I'm in.

And if he's to busy then am still definitly up for it. I agree with what kinboshi was saying though would be sensible to do that.Seems like there's a lot of interest in this who wants to volunteer to get the ball rolling?

[phatomch]

ive never done anything in shares but when i get in tonight ill set up a thread and get a general idea of who would be interested and at what £ level people would it to be at.

[jizzemm]

Im deffo up for it, as tighty knows, I have already had a chat or 2 in the past for some advice which i have been grateful of, so yes count me in, and any admin stuff that needs doing, ditched being secretary of local football a while ago, now miss it.. doh

Kins idea good as well, seperate forum probably the way forward..

[ItsMrAlex2u]

I think of all the banks RBS is the biggest value at the mo.
Share price £1.70 ish, down from £6 when they did their 3 for 1 split.

RBS were the first to come to market for their rights issue to raise capital. They got stick for that but the pain is behind them for that.

The market thinks they have taken a huge gamble with ABN, and there is no doubt they over paid somewhat, but they have proven they have the ability to manage a take over of huge size as they did a fantastic job with Nat West.

The market is in a mess at the moment and there is huge un certainty to come, but it is a rock solid blue chip company and will recover in time there is no question. God knows how long the current credit crisis and general terrible market conditions will last though.

What RBS really need to do is get rid of Fred Goodwin their CEO. The market cant stand him and their shares have underperformed for years purely because he is in charge.

[mondatoo]

ive never done anything in shares but when i get in tonight ill set up a thread and get a general idea of who would be interested and at what £ level people would it to be at.

Nice one 

[Rooky9]

Sounds like a good idea, I'd be interested. Can put in some hours if I can offer anything to the group too.

[Indestructable]

A couple of weeks back i was convinced that we had got to the bargain bucket prices for banking shares and made an investment, which promptly sunk further as I had missed the bottom. Earlier this week again I am convinced and make a further investment in banking shares. Thankfully the market shows a glimmer of hope, and on paper I am now up between the two deals. Hopefully we have now seen the bottom, but who knows what fun lies ahead?
Usual warning, don't invest/gamble what you can't afford, don't put all your eggs in one basket etc. Of course I have ignored these warnings and I am in fingers crossed territory. 

[technolog]

 

[phatomch]

well thay have closed of part of the company The Mortgage Buisness (tmb) today and made 425 people redundant.

[TightEnd]

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)

"The FTSE 100 index of leading UK shares was down 271 points, or 5%, at 5145.3 by midday. Banking shares have been particularly badly affected with HBOS down almost 30%."

[WYSINWYG]

Shorting time!

No way I'd buy a regular stock at the mo, market defo aint seen the worst of it yet.
Am keeping a close eye on bhi slb hal drq and wft at the mo, oil often a good refuge in general bear market imho.
In fact if slb finds 75 I'm probably back in, sell off at 100 again.
Just my opinion, of course.

[boldie]

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)

"The FTSE 100 index of leading UK shares was down 271 points, or 5%, at 5145.3 by midday. Banking shares have been particularly badly affected with HBOS down almost 30%."

Blatant brag IMO

But very well called indeed...I can't believe how big a mess the banking sector is in in the States (and now the UK)

[George2Loose]

Used to work for the HBOS and as part of the reward package we got free shares- I sold mine when they were at a peak of £11- some decided to hold on to them- betthey're regretting that decision now.....