could RBS be next for suspension?

[WallStreetHero]

well theres been a rally on all stocks and economy seems like its stabilizing, but infact its an artifical boost.
the goverment and central banks have pumped in so much money into the system and all this money is going into the economy obviously which is improving it but in the long term its set it up for a depression which would start in 2010. as all the new money created will result in currency devaluation and hyper inflation.

we may continue to see stocks climb but be ready for the crash, or the great crash of 2009.
we may see a simular scene as last year when lehman bros declared bankruptcy with another few major companies fading away into the dust.

 

[peto]

......as all the new money created will result in currency devaluation and hyper inflation. ....

we may continue to see stocks climb but be ready for the crash.......

Wouldn't hyperinflation cause asset values to rise, leading to increase in the dollar value of companies ?

 

[Jaydee]

Can you elaborate on this, i hold RBS shares and there's been a bit of rally of late, why do you think they will take a hammering over the summer?

The old adage sell in may and go away, should i be heeding that advice?

They're rallying because the FTSE is rallying. Also, BARC passed an FSA stress test (checking they are suitably capitalised) which all the banks have been riding on the back of.

Two things:

1) The FTSE is rallying, the market seem euphoric at the moment with everyone talking of recovery being imminent. What if it is just a rally and isn't a sign of recovery, couldn't the FTSE fall to, say, 3000? In such a case, where will RBS be priced?

2) The RBS balance sheets are still an unknown...

 

[robbiemac]

It is strongly believed a number of banks are technically insolvent.

If this was my business I would be forced to close as this is illegal, however creative accounting keeps them on the right side of the rule book. Along with the obvious goverment support.

Quantative easing has so far been a failure. This money has been used to bolster banks cash reserves, just in time for stress testing.

I can assure you, tax payers money is not making its way back into the real economy in the way we were led to believe it would be.

More jiggery pockery from number 10.

 

[dougie1919]

Bought £50k @ 12p, should I sell, and buy back in when they hit low twenties.

 

[Jaydee]

Bought £50k @ 12p, should I sell, and buy back in when they hit low twenties.

You are the trader in charge of this - listen to your own view and nobody elses. Ask yourself about your objective when you bought at 12p.

The reason why say this is because nobody knows what is going to happen. It's all based on best estimations and probability. Also, we all have different perceptions, time frames, risks and goals. Therefore, do what you think is the right thing to do.

Good luck

 

[dougie1919]

Been watching this company for quite a while now and feel that the price could reach £1, so I think I will stay in for a while yet.

Cheers.

 

[peter450]

Dougie you certainly don't want to listen to me i bought around the 1.50 mark...however i am trying to improve my stock selection methods, and looking back on buying thought process it was pretty much a step by step guide of how not to invest

Good luck on your shares, hopefully if they get to the 1.50 mark i'l break even on a badly timed deal and you'l be considerably richer too, so smiles all round

 

[dougie1919]

Peter, have you thought about buying more RBS at these low prices so as to get yourself back into profit quicker ( could go the other way right enough and leave in worse state). Thats how I ended up buyin £50k @ 12p as i all ready had positions in RBS at slightly higher prices (£4k @ 63p, £5k @ 57p, £30k @ 51p, £16k @ 41p) and when I watched with great pleasure the price plummit I thought it was a steal to buy at 12p and it brought me back into profit much quicker.

p.s if they reach a quid fifty am heading for the door pronto

Cheers

 

[peter450]

I was tempted to get some at 10p, but i had already bought around 14k's worth at £1.50 and there seemed a real danger the bank could end up nationalised like northern rock, so i thought why risk it.

With hindsight a bad idea as another 1k would have made zero differance really if i'd lost the lot, but at 50P would have left me facing a overall 50% loss rather than 75%, to be honest i may buy a few more RBS shares but only if they drop back down a bit, while i do think long term they will go up, the question is how long and would i be better off putting spare cash into paying of my morgage a bit quicker.

It's tricky this investing business, so much choice but not quite so easy to make the right ones

 

[dr.blix]

f@k me dougie you must have balls of steel!

it's a funny thing pound cost averaging...some investors see it as getting a better deal in the long view, whilst some think it ludicrous to pyramid in the wrong direction. to keep firing that amount of cash at RBS while it was heading for possible nationalisation must have taken some nerve!

i bought about 7 or 8k of RBS at 39p, right before it bombed. i panicked (like a proper newbie), sold and lost most of my meagre beginners account.

lost my nerve after that (and started this thread), i couldn't take advantage of the 10p bottom to get my account back...such is life.

good luck to both of you with your RBS positions