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Northern Rock (NRK)     

irlee57 - 13 Aug 2007 09:03

any comments, thoughts, on this stock.

cynic - 21 Sep 2007 12:56 - 260 of 1029

I AM VERY THICK!
How can paying a divi conserve cash?

degzy1 - 21 Sep 2007 13:00 - 261 of 1029

I think Guscavaleir means if they dont have to pay a divi, as the people paying at present dont expect ony anyway.

HARRYCAT - 21 Sep 2007 13:16 - 262 of 1029

I believe that this divi (interim) will be paid, though the final divi is unlikely.
I remember seeing an article to this effect. If I find it, I will post here.

Big Al - 21 Sep 2007 13:20 - 263 of 1029

Last week they confirmed the interim would be paid. I've seen nothing to say they've changed their minds.

HARRYCAT - 21 Sep 2007 13:26 - 264 of 1029

So the divi represents about 7% of the share price, which is exceptional.
However, once it goes ex-divi, presumably people will pile out & the sp will slide again. The choice is income over a capital gain.

Big Al - 21 Sep 2007 13:46 - 265 of 1029

Pretty much sums it up, Harry

Guscavalier - 21 Sep 2007 14:03 - 266 of 1029

sorry cynic, I just got back, degzy1 understands, stick with him.

cynic - 21 Sep 2007 16:14 - 267 of 1029

never apologise, especially to me - lol! .... i am def in here only for the day as goodness knows what the w/e press will have to say, be it good or bad

Big Al - 21 Sep 2007 16:18 - 268 of 1029

I've bought a few more this afternoon. ;-0

cynic - 21 Sep 2007 16:21 - 269 of 1029

i dithered this morning so bought at 195 when could have got in well below that ...... only a fairly modest stake, and just a rather silly gamble

Big Al - 21 Sep 2007 16:27 - 270 of 1029

Indeed it is high risk, cynic. ;-0

hangon - 21 Sep 2007 16:30 - 271 of 1029

The press is largely to blame for the collapse IMHO - looking at the accounts last year, did anyone notice an enormous hole? Of course not, because there isn't one -
+ The issue of savers queueing was largely Government posturing.

Now, the issue is what is a fair-value and can the Brand continue?

Perhaps we should ask the questions the other way round . . .
1) it will continue, since it will be able to find funds at higher rates - there is always a loan available at the right price.....so does this mean NRK is non-profitable? I dount this as the Bank rates appear to be reducing, firstly in USA and probably here, too. Furthermore, new property is still available at slight discounts so making the Mortgage more-affordable.

It will be interesting to see how this goes...but my money is on the Weekend papers bashing NRK....not for any good reason ( like they have been saying so for the past year!)...but simply becaause Press Freedon allows them to.

I don't think this is in the Public Interest as it undermines the saving, home-ownership etics of Society as a whole. Was it so wrong to fund home-ownership with funds from the cheapest source - of course not.....in retrospect they should have made them much more "variable" so large changes in the wholesale money-markets would protect the scheme.....and maybe that was where the Execs were at fault (if indeed this is the case, I do not know the fine-print)...

If wholesale money-markets rose again....would the government allow NRK to fail? I suspect the answer is yes, since they can see a clear distinction between an average Joe that invests 5k in a savings account and a Jack that buys 5k's worth. . . . personally I see no difference, both expect to receive dividends and one is trying to remove the long-term effects of inflation. No-one invests in Banks for a quick buck.

2) Now, what's NRK worth? - I find it difficult to suggest much more than 2 current sp. . . yet only recently (before the queues), it was nearly 8 - so maybe the 6 is all hype (or hope?)...or was it real...these questions are almost impossible to answer....just shows how Government Bungling can put paid to investments.

Ah well, time for the medicine, nurse. Two I think.

cynic - 21 Sep 2007 16:46 - 272 of 1029

if "the press is largely to blame for the collapse", how can you then say NRK is now worth little or nothing "much more than 2"?

Big Al - 21 Sep 2007 17:02 - 273 of 1029

I think, as has become the norm in recent years, that hedge funds get a wee bit over-excited. At some point, however, they have to cover. ;-)) At the end of the day NRK are not bust as far as I know.

cynic - 21 Sep 2007 17:17 - 274 of 1029

they may not be bust, but they're certainly a busted flush ...... and i was very naughty and did not close out this afternoon ..... deserve to get punished for lack of discipline but may get lucky

explosive - 21 Sep 2007 18:19 - 275 of 1029

I also got in today at 186 and hope to get lucky..... Small stake only but worth the gamble I think...

cynic - 21 Sep 2007 18:42 - 276 of 1029

right sort of price though 170/175 was briefly on offer .... 195 for me was a bit stupid, but may well get away with it

lex1000 - 21 Sep 2007 22:01 - 277 of 1029

Good evening Cynic, confessions of a gambler.remember you saying similar re:TAN. Why not live dangerously- you obviously addicted to the adrenaline rush.regards lex;o)

cynic - 22 Sep 2007 06:55 - 278 of 1029

one has to be a gambler to play with shares anyway, and anyone who professes otherewise fools themselves.

Stan - 22 Sep 2007 09:18 - 279 of 1029

"one has to be a gambler to play with shares"

The confusion between "Risk Taking" and "Gambling" is a common one sadly IMHO.
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