northern rock shares

[JeffC]

anyone any thoughts on wether investing a sizeable chunk of money in northern rock shares be a wise move at the moment      

[funbobby]

I was thinking of sticking a couple of grand in. Thats the amount the government is duty bound to guarrantee you back.

[RobC]

I should have thought with a little more help from the chaps in the city they can kick the donkey a little more before they all wade in...

[Muttleys V8]

Share prices in NR have dropped due to speculation a buy out is on the cards!

Would have thought the share price would go up but not in this case!

[budmikem]

obviously you never banked with the BCCI !

they were rock solid as well before going 'bang'

[davidgh]

Pays your money (quite literally) and takes your choice.

Latest share price development is to be found here  --  down again at the time of writing.

For the punters, NR has lost the unquestioned confidence of depositors (although God knows why now  --  with Gordon's guarantee existing depositors are effectively holding government bonds yielding 6%!!). That sort of loss of reputation takes years to repair.

For the City, borrowing short to lend long is a very well documented recipe for spectacular success or much egg on face. Investors don't like banks to be gamblers; another reputation that will take a while to renovate.

Additionally, at current money rates NR is probably paying some lenders/depositors more than it is earning on its mortgage portfolio  --  meaning the likelihood of *very limited* profits until the situation can be rectified.

If (when?) there's a takeover, the offeror will probably have to pay a significant premium over the (then) share price to get board recommendation and shareholder acceptance  --  but capturing that premium in full means buying at the bottom.

I think a broker I know would say, "Not for widows or orphans".

Edited to say: not a financial guru; this analysis is entirely homespun. V 8 spent years as a financial adviser  --  calling Tommo............

[JeffC]

they were 328 this morning and are  now 257  

hmmmmm my balls are not big enough for something that I dont understand     think will give this a miss  

[steve_m]

Whilst the govt  is supporting investors money I don't know if that covers shareholders . . . be surprised if it did.

[davidgh]

Whilst the govt  is supporting investors money I don't know if that covers shareholders . . . be surprised if it did.

Certainly doesn't

[V 8]

No it doesn't, it's only for depositors, and only if NR goes bang.

I would only invest an amount you can afford to write off.

David is bang on the money (excuse the pun)!! NR have lost investor and depositor confidence that may never recover, but the other banks B&B, C&G A&L may be a good bet while the current trend drags the price down

JMO tho'

[Paul Hurdsfield - Joint Manchester AO]

The guarantee is for £2000 of savings, not shares, shares are allways a gamble, I've been considering a small punt though  

[pistonbroke]

Adam J. Applegarth

Chief Executive

Just clock this geezers mug shot  

Looks a bit      

Would you trust him with yer family shopping  

[Norman Verona]

Paul, The Bank of England/FSA guarantee the first £2000 of a savers money and then 95% of the next £28,000 (I think thats it, if not it's something like it). This is not new it's been like that for a long time.

There is no guarantee for shares.

However, I would think that most of those people queing to get their money out had substantially more than £30,000. One interviewed on TV had £750,000.

I suspect people have got mixed up with the sub-prime mortgage problems and NR's inability to renew it's 3 month borrowings. (that was due to the inter bank lending problems as a result of the sub-prime defaults but it doesn't mean that NR have losses due to the huge US debts)

[Guest]

Last time i invested it was £1000 in a b****y telecoms company in a similar state... and then it went bust and i lost the lot.

In summary, if you don't understand, don't touch.  Like cars really...!

[oldman]

Who's goin t'win the 2.30 at Newmarket t'morror.Only the trainer knows .Certainly not the gee gee or the punter

Cinell.Just put me name down for next Chelsea manager