Royal Bank Of Scotland Share Discussion Threads

[smurfy2001] 05/8/2015 12:53

Leeds, thought this might amuse as if l recall you were a lawyer?

[smurfy2001] 05/8/2015 12:24

Surprised with the strength of the index recently; portfolio only up £3.5K though :(

[leedskier] 05/8/2015 12:19

The £ is flying today.

[ramco] 05/8/2015 11:48

Even more so on a quiet day like today...there will be movement when ADP is due at 12:15....that's GMT..;

Add: not withstanding our views on what ADP has become...anyway always yet another jawboning to look forward to...lol never mind that the yield potential which attracted droves across the pond yesterday and underlying remains positive today...

[leedskier] 05/8/2015 11:35

They take control of the bid / offer spread, which in a thinly traded market is not so difficult.

[smurfy2001] 05/8/2015 11:18

3 of my trades declared here yesterday nicely in profit.

[ariesr] 05/8/2015 11:17

Thats interesting, so how do they get a rise without buying more, since presumably they want to offload

[leedskier] 05/8/2015 11:14

ariesr, it is a bit like the US Treasury trade, the Hedgefunds needs RBS to rise to enable them to flip the shares they bought from HMG into the market at a nice profit.

[leedskier] 05/8/2015 10:52

Where I hang my flag there are no trade unions, well that is not entirely correct, air traffic controllers are affiliated to a Pan European air traffic controllers trade union. As a result they are just about the highest paid employees in the Country.

[ariesr] 05/8/2015 10:52

Looking nice.

[leedskier] 05/8/2015 10:49

11m ago
10:38
Greek air traffic controllers strike, seeing EU-based reforms

Greek air traffic controllers have gone on strike a the height of the tourism season, causing several domestic and international flights to be cancelled.

At Athens airport, about 22 flights were cancelled and 173 rescheduled due to the four-hour stoppage. The controllers are striking from 11.00 to 15.00 GMT. They are asking for EU-based reforms – calling for their government agency to be restructured and an independent one set up in line with EU rules. They believe this would hep Greece deal with staff shortages and a lack of funds for the maintenance of air traffic control systems.

The air traffic controllers’ union has threatened to step up action from 14 August if the government does not respond to its demands. Tourism accounts for a fifth of Greece’s economic output.

[leedskier] 05/8/2015 10:39

16m ago
10:23
European stock markets are still trading higher. Britain’s FTSE 100 index has been boosted by better-than-expected results from insurer Legal and General and the London Stock Exchange. A rebound in the mining sector has also helped – despite a lacklustre copper price which remains near six-year lows, hit by concerns over demand from China and expectations of a rate hike in the US.

UK’s FTSE 100 index up 0.2% at 6699.84

Germany’s Dax up 1.06% at 11576.99

France’s CAC up 1.04% at 5165.47

[leedskier] 05/8/2015 10:30

Banking isn’t necessarily a sector that I’d be rushing to take positions in at the present time, given the state of the world economy, but Royal Bank of Scotland (RBS) still interests me at current levels.

Even less so if you take the view that at present we are in a ‘house of cards’ scenario and the levels of exposure if things go badly in the wrong direction could make 2008 look like a picnic – especially when throwing in the current levels of sovereign debt, and what a general slowdown in the world economy could trigger.

But short of removing your money from the stock market altogether and sticking it under your bed, there isn’t a lot we can do about it other than hoping that those in charge can carry on ‘kicking the can down the road’ for a few more years, whilst pretending that all is rosy in economic terms in countries such as the US.

One bank that knows all about the potential pitfalls from the last economic crisis is the Royal Bank of Scotland and I think it could present a good buying opportunity at the current share price of around 339p.

This bank has just announced the successful placing of 630 million ordinary shares with institutional investors via an accelerated book build as part of the disposal of HM Treasury’s holding in the company.

This represented 5.4% of its overall holding, including B shares, and although it resulted in proceeds of £2.1 billion, it meant that at the price of 330p that the shares were sold at, it crystalized a loss of circa £1 billion!

What was encouraging is that according to some City sources the ‘placing’; was over-subscribed by 3.4 times and resulted in the government selling an additional 5% more shares than originally planned.

The general consensus amongst many analysts also seems to be that the government is selling at the wrong time and could have reduced its losses – having paid an average price of around 500p on behalf of the taxpayer! – as the sale was done at the lowest price in 2015.

The Government still has 51.5% of the ordinary shares in the bank, and it looks as though no further disposals will take place for at least 90 days.

Royal Bank of Scotland has been going through a transition period as it changes the focus of its business and restructures, which should see further improvements to its balance sheet in the future – currently the net asset value equates to around 380p per share.

In terms of the most recent financials that were released last week and included the interim results to June 30, plus Q2 2015, there is far too much to go through in detail here.

But it did show that the mortgage business was improving, with market share for new loans now at 9.7%, as compared to 8.3% of existing ones, and the commercial banking side of the business is also heading in the right direction, with £1.4 billion in additional loans, and to companies in sectors that are considered strong.

Its CET1 (Common Equity Tier 1 capital) ratio – a measure of the bank’s strength - is also increasing and currently stands at 12.3%, and should be a fair bit higher (in excess of 15%) if it manages to sell its entire share in Citizens Bank by the end of the year as planned.

So whilst I’m not a huge fan of banks currently I can see the chance of decent return in the short term from the current share price – and if you’re looking to hold long term, an eventual return to private ownership ultimately should also result in a higher share price than that of today

www.shareprophets.com/views/14055/royal-bank-of-scotland-currently-offers-value

[lance corporal winstanley ash] 05/8/2015 10:07

Looking good chaps

[leedskier] 05/8/2015 09:07

add:


I would be surprised if we are any closer to a rate rise, unless there is a real concern about house prices, which cannot be controlled by tighter lending criteria.

[dope007] 05/8/2015 09:06

Any reason why people are buying the market today, apart from CB intervention......

[avatar333] 05/8/2015 09:06

Morning.

;

[leedskier] 05/8/2015 09:04

Interest rates: economists and homeowners brace for Super Thursday

[leedskier] 05/8/2015 09:02

Market showing signs of recovery ahead of Super Thursday.

[bigman] 05/8/2015 07:10

Done a wee bit more homework, my view is certainly changing to being able to make some money.

[gcom2] 04/8/2015 20:29

Good luck on your buys smurfy, think you'll do well. I had a sept contract buy order at 328p, so just missed the low, fundamentals will see this back over 390p before xmas. think my avg is now around 350 so similar to you.

[smurfy2001] 04/8/2015 20:11

Leeds, who stores their photos there ;)

Bigman, not really 60% of hedge funds bought today and no doubt about it, they will make big money on this. I've taken advantage of the weakness.

I'm sure the price was shorted down for extra measure ;)

[bigman] 04/8/2015 19:47

This is only for institutions and pension funds, it will take a few years and i think you need to hold for 5 years minimum, better things to put your money into without the huge overhang of the government holding.