BUY BUY BUY! No, I don't mean 'Bye bye bye', I mean buy, buy, etc. Shares at an all-time low (about a 12th of pre-oops value), the media is talking it down, down, down, Treasury getting into hot water for supporting it (legal?), the only offers being made so far are wa-a-ay below even current 'value'... The get-rich-quick sharks are circulating. If someone like Branson takes it over and makes it 'Virgin Banking' (no funny comments, please), then it'll be Christmas come early for anyone buying these Rock-bottom shares. Even if he doesn't, someone will take it over pretty soon. You can hardly buy cheaper shares. In a couple of years time they'll be worth, ooh, around 5 times more? 250%-ish annual growth - suits you sir. (You can thank me later.)
Devs, are you really that much of a numpty? (Of course not....) If the British Government have a financial stake (which they now do via the BOE unlimited guarantees) then they will ensure Northern Rock stays worthless. Remember Railtrack? It's exactly the same scenario. Railtrack was allowed to become worthless (by governmental methods - ask Stephen Byers......) and then all those unlucky shareholders were holding shares worth absolutely zilch. Did you do sums at school?
Yes but. Of course it's lost huge amounts for its shareholders - duh. I'm assuming you weren't one of the unfortunate original ones. However, now that these poor saps have found their shares becoming near worthless, now's the time for us lucky folks to step in and benefit. Ok, it ain't going to go back up to pre-oops levels, but will almost certainly go up significantly once someone takes over. Imagine if it was Branson... You buy at Rock Bottom... You also get the added warm glow from knowing that you're benefiting from someone else's misfortune - I like that. I did it repeatedly with house crashes (financial, not physical), picking up these juicy repossessions.
Do you know what can happen to your shares if it gets taken over? Supposing it is sold for a nominal 1p? What if the Gov. steps in and nationalises it? If you still think it is a good risk and you've got some spare cash you can afford to lose, give it a punt. Otherwise it is akin to putting your life savings on a 100-1 outsider at the dog track!
I wish DA had been around when Marconi went bust. No government around then to support the share price. I lost £3k on that.
Press today says all offers have valued the Rock substantially below current share price - that low valuation, if anything, is what DA would be forced to accept for his shares (not the immediately prevailing stock market value)! One hell of a gamble.
Opening price when DA tipped (19 Nov) 128.1p Closing price yesterday (20 Nov) 97.0p Good tip DA! 24% loss...
http://uk.finance.yahoo.com/q/bc?s=NRK.L&t=2y&l=on&z=m&q=l&c= I think 'the wheels have come off' is a fair description. Can't laugh though as there's £900 of my taxpayer cash gone down the pan that'll be added to council tax et al over the coming years.
Jeepers, I didn't expect you to buy straight away. But, what a snip they are now. (Come back to this thread in a couple of years time...)
Duh, these shares will pick up as soon as the Rock is bought out. And the buyers will soon find it too tempting. If someone like Branson buys it and turns it into Virgin Bank, you'll be laughing all the way to the, er, Virgin Bank. I'd put money on it myself but I lost it all with my last stockmarket gamble.