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The Royal Bank of Scotland Group plc Message Board

  • cptjrg cptjrg Aug 2, 2010 3:58 PM Flag

    Question,?? RBS pfds-sell or hold.

    Your thoughts again L.Jack,please,
    Just wanted update.Have you changed your Modus operandi regards my RBS E,G,&I,s? now that theres been a good advance? The same holds for my ING,s as well. Hard toresist letting some go. Thanks alot, Cpt Jrg

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    • What looks more interesting to me is the RBS-G compared to RBS-I. Sometimes G is yielding 0.3% more than the Is. The interest rate difference is 0.17% and the price difference could be 6%+ at some times in the last few days!!
      I have sold RBS-I and bought Gs as a result.
      ns

    • Well, I added a few in the 13's.

      They look like a decent swap now, to something without threat of losing the divi. Frankly, these should not be this high, although the other RBS preferreds and preferreds in general have been on a run.

      On the i, e, g's, I have only G's. I'm sitting on em. I'm gambling the divi will not be restricted, gambling. If I'm wrong, I'm flexible and will lighten up. That of course was a better risk at $12 than $14.5, cause at $12 the suspension was fully priced in.

      You need to undestand that although I do some trading of preferreds, I gnerally look at em for dividends. So, I don't care if they go up and down a bit. I will swap for more dividends, or for a preferred that I believe will make a nice bounce (I bought NBGa's recently, for instance). Too, I will swap preferreds for short term plays on common.

      If you are in for gains and not divis, the equation is much different. If so, yes, you are now gambling on the e, g, i having good news on the suspension. The ings are pretty solid and I think still a bit underpriced.

      jack

      • 4 Replies to luckijack
      • Jack, I agree that the gamble in the $14's is a reasonable one for the G's. We should get at least 4 more divvy's before any suspension. If suspended, we drop $2-3. If no suspension and RBS NV performs like we think it will and should, we go up $5-7. Like you, these are the only ones I hold. Sold all the RBS's, took my gains and rolled into the DB, ING and AEG preferreds. And feel so good about it, going with Bombay Sapphire, and sometimes, Tanqueray 10.
        Cheers and good luck to us all.

      • Jack......I also own the G's.
        Seems to me that the recent strength in current price is reflecting the general feeling that the dividend is a little more secure.
        And if RBS announces that the dividends will DEFINITELY NOT be suspended, shouldn't the share price bounce right back to around the 20's?
        Am I way off base assuming that since RBS seems to be on a road to recovery (including payment of all current dividend obligations), there is no reason to stop paying the ones they are currently able to pay?


        I guess I don't understand why shareholders are so often kept in limbo regarding the status of their investments..it's frustrating !!

        Thanks.........Bill

      • what is the symbol for the preferred that
        they stopped the dividend? its my understanding
        that it is on hold for two years.

        thanks for your reply

      • Thanks again L.Jack,
        I'm on the same page,divs not so much gains,at my age that makes sense,(86+).I think Catdriver put it nicely,INGs are like gold.I'm also a sometime gambler,AIG conv pfd A,s.
        Thanks for the insite and keep up the good work. All the Best,cptjrg.

 
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