Barclays/RBS Advice Needed

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tonyblu

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Hi,

Although I am a Euribor trader, friends and family continually ask me for advice on different stocks, no matter how many times I tell them I don't really have a clue.
A friend of my wife and her husband bought some Barclays shares close to the lows and have done quite well tripling their money, they are now thinking of selling them and buying RBS shares and want my advice.
To me it doesn't sound a good plan but as I have said its not really my area, would really appreciate any other views on this.
 
Not so sure about Barc as it has seen a very strong up trend from £2 so the latest decline may just be a normal correction. It dropped from about 170 t0 145 in two days just before embarking on the latest hike all the way up to £3.

As for RBS if it breaks below 40 then it is looking dicey for a further retrace. Lloy has just broken it's trend line and is also looking dicey (the next couple of days will tell). My advice is to check news feeds (Bloomberg, etc.) carefully, I'd hold off until price indicates a clear direction.

They all seem to have retraced somewhat following Q1 reports and the US bank stress tests.

All this said, I think that they are all good prospects for long term hold investments.

This represents my opinion only, do your own research before making any investment decisions, blah, blah, blah.

Hope that helps.
 
i get this a bit too. people don't want to take the responsibility for making a decision or even look at a chart which is either fear or greed. as the old saying goes in the market there is room for bulls and bears but pigs get slaughtered.so we all have to decide which of the two bulls or bears we are and if we don't know then maybe its because we are the third and about to get slaughtered? :)
 
oiltanker said:
i get this a bit too. people don't want to take the responsibility for making a decision or even look at a chart which is either fear or greed. as the old saying goes in the market there is room for bulls and bears but pigs get slaughtered.so we all have to decide which of the two bulls or bears we are and if we don't know then maybe its because we are the third and about to get slaughtered? :)
Click to expand...

Yep pigs get slaughtered and sheep follow the herd, then start bleating when the market goes against them.:eek:
 
All the banks have had a good run u so switching from one to the other seems a bit pointless and also RBS may have underperformed Barc as they had a less secure capital base and had to turn to the govt where as barc raise money externally, so should (maybe) be the stronger.

Take profits and wait for another good opportunity
 
Thanks guys, so do you think they are more of a long term hold, than a profit take with a view of getting in again?
 
my 10c is to hold your BARC

those (UK) banks not under public ownership (like RBS) are seriously undervalued IMHO and are at least a 10 bagger

wouldn't touch RBS ATM - plumb to be revalued any day soon
 
tonyblu said:
Thanks guys, so do you think they are more of a long term hold, than a profit take with a view of getting in again?
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Hmm, well if you're the type who enjoys staring at a quote screen for 8 hours a day then you can day or swing trade all of them, when they're in a range they are usually quite predictable. That said, since the peak of Tuesday last week after the bank holiday (I was going to go short, don't know why I didn't), they have all retraced and the price charts are now screaming uncertainty. They've gone into a creeping phase, better to wait for this to be resolved, there should be a clearer picture by Friday's close or possibly by Monday.

It's worth mentioning that if your friends are looking to hold long term then Barclays has much better fundamentals at the moment, they have been stress tested and found to be sufficiently capitalized, they have also managed to avoid government interference.

Of course anything could happen, please get other opinions before making any decisions.
 
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jon1971 said:
Hmm, well if you're the type who enjoys staring at a quote screen for 8 hours a day then you can day or swing trade all of them, when they're in a range they are usually quite predictable. That said, since the peak of Tuesday last week after the bank holiday (I was going to go short, don't know why I didn't), they have all retraced and the price charts are now screaming uncertainty. They've gone into a creeping phase, better to wait for this to be resolved, there should be a clearer picture by Friday's close or possibly by Monday.

It's worth mentioning that if your friends are looking to hold long term then Barclays has much better fundamentals at the moment, they have been stress tested and found to be sufficiently capitalized, they have also managed to avoid government interference.

Of course anything could happen, please get other opinions before making any decisions.
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Have we now reached the interim bottom for the banks? They have all experienced a leveling off in price and have rallied slightly, so have we seen a reversal or is it just a suckers rally (they are all very news sensitive)? RBS has retraced to it's original TL, Lloyds however has made a glaring break of it's original TL. Your opinions please...

(Tonyblu, apologies for having hi-jacked your thread).
 
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the opinion is that anyone with a picture of "wall street" charlie sheen on their profile deserves nothing but a right good old kicking...

no offence chip...
 
Am still genuinely interested in folks' opinions of Lloyds & RBS likely next moves, especially Lloyds as they seem to be deeper in the cr*p than anyone previously suspected.
 
jon1971 said:
Am still genuinely interested in folks' opinions of Lloyds & RBS likely next moves, especially Lloyds as they seem to be deeper in the cr*p than anyone previously suspected.
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vast improvement

well, now you see yesterday, with the old guard @ LLOY bailing - look for more gains as confidence returns

FTSE already up led by banking shares today
 
theSheik said:
vast improvement

well, now you see yesterday, with the old guard @ LLOY bailing - look for more gains as confidence returns

FTSE already up led by banking shares today
Click to expand...

yeah I read the top chap is supposed to be stepping down 2010, wasn't sure it would have that much of an effect on price as consensus is that financialy lloy is more of a black hole than a black horse (galvan). I noticed a 97 spike this morning, but it now seems to be staying shy of 95.

Seems to have reversed the decline, but it looks like it'll be a slow climb back to the heady heights of 120, not too long I hope as I am trapped the wrong side of the Market long on a cfd.
 
jon1971 said:
yeah I read the top chap is supposed to be stepping down 2010, wasn't sure it would have that much of an effect on price as consensus is that financialy lloy is more of a black hole than a black horse (galvan). I noticed a 97 spike this morning, but it now seems to be staying shy of 95.

Seems to have reversed the decline, but it looks like it'll be a slow climb back to the heady heights of 120, not too long I hope as I am trapped the wrong side of the Market long on a cfd.
Click to expand...

better hedge it then LLOY/RBS
 
theSheik said:
better hedge it then LLOY/RBS
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ha ha, thanks sheik, I'm in even deeper with RBS. That said Lloy isn't so bad as I averaged down at 84.

This is my first account, so better to make all the mistakes now while the stakes are relatively low.

Mind you if they both come back up i'll be laughing (or rather breathing a sigh of relief).
 
Okay, so today managed to exit Lloy with a tidy profit, then re entered when the price tumbled mid afternoon and now only 1 point the wrong side of RBS (happy, but very annoyed with myself for allowing the situation to get so bad in the first place).

Barclays however remains the star performer in the banking sector.

Tomorrow, we have the job cuts announcement getting digested & factored in and also the open offer, interesting times.
 
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