AIB has 2.5 billion capital shortfall after it sells its stakes to raise 5 billions Euros... And this is if this works as expected AND if it passes stress tests. If you buy this junk, you expose yourself at a probable x5 dilution factor in the coming year. Either buy IRE now that it is fully recapitalized and EC approved restructuring plan, or just do nothing. Ah NBG too is a good buy.
Apart for the nice logo, I do not see any reason to buy AIB now. Any upside move is a nonsense as long we have no clarity about what exactly happens on the capital front. Buying such stock hoping for sheeps to do like you after you is called speculation, there are no fundamental reasons for others to move they way you want them to, but you bet on it happening when you buy.
AIB did pass the Irish stress test. NBG, is almost selling for bookvalue & AIB is at 1/4 of book based on the 12-31-09 financials.
I know which one I'm going to hold on to.
Good luck longs!
no news about its asset sale, which means AIB was not in a rush to sell its asset, means the bank is confident with its own finiancial situation. AIB can easily reaach $10 in a year or two...I had some and may add more AIB soon.
Just look how the following banks stock is trading to bookvalue:
JMHO, alot of variables in the financial statements, however, IMHO AIB for my $ is a steal.
Due your own due diligence.
Try holding down the Alt key and then typing 178 on the number pad.
Alt 178 = ▓
It renders a bit differently in the subject field and message body, as you can see from where I entered the ASCII code in both areas.