any comments, thoughts, on this stock.

Andra AP-Fonden buys 1 mln shrs in Northern Rock, ups stake to 1.312 pct UPDATE




(adds portfolio manager's comments)
LONDON (Thomson Financial) - Andra AP-Fonden, the Swedish pension fund, said
it has bought 1 mln shares at 207.07 pence per share in Northern Rock PLC,
lifting its stake in the beleaguered mortgage lender to 5.53 mln or 1.312 pct.
"I think it should be valued at 500 pence per share," said Cristian Stoian,
who manages the fund's portfolio.
"Most people think that Northern Rock will cease to exist, but I believe
this is a functioning company that will survive," he added.
"It will be disastrous for the housing market in the UK to remove one of the
most efficient and important players in the mortgage business as such action
will result in loss of lending velocity and increases in price, so it is hard to
believe the Government and BoE would want to see that happening," said Stoian.
"The Bank of England won't remove the credit line simply because Northern
Rock has the ability to pay for it. The other assertions that I hear about
Northern Rock never being able to refinance its mortgage book are also hard to
believe given that there is a wall of cash looking to be re-invested in the
fixed-income market this quarter. This could well restart the credit market," he
added.
Earlier today, The Financial Times reported that city trader Jon Wood is
understood to have built a significant stake in Northern Rock through SRM
Global, his 1.5 bln stg hedge fund.
At 12.20 am, shares in Northern Rock were up 70 pence at 277 pence.

ok then ..... a little Q for you prospective punters (long or short) ..... sp is currently 273.5 after a high today of 297 ...... are you prepared to put real money on the table now, or if not at what level? .... further, would be that be long or short and would you set (guaranteed) stops and limits?

cynic - having been burnt by this - I wouldn't touch it with a barge pole!

Hi Guys, I'm far too nervy to short a stock. But in the end I couldn't resist a punt (which is all it is), having seen the number of Buyers vs Sellers on Level 2 for this, and bought 2k's worth at 263.75p. It is now at 271.5-272.0 so a little profit already, in about 30 minutes. I think I'll have to keep moving a stop loss as the sp goes up - don't want to lose what little I've made!

Thanks for your comments - appreciate it!

but now you are doing your dosh as sp is only 247!
so did you put in a stop loss, guaranteed or otherwise?

Day traders dream for the brave.

skinny .... as you implied before, this is a mug's stock for no one knows a fair price and it's flying around worse than the likes of SOLA with no underlying logic

RAB said NRK are worth 600 +

of course they did! .... they own a huge slab so it is in their interest to talk up the price

I would have thought the best way to trade these would be a straddle, the only time i have used one was with a traded option.

I prefer trading BB. and Al. who are in a sense benefitting from NRK's gain but losing by Nrk's newfound competitive advantage

Hi Aldwickk: where did you read that about RAB's estimate of 600+?

It is a mug's game this NRK, I totally agree with Cynic. As soon as I'd posted my last message, I saw the sp was turning so I jumped off the jagged rock (coward, I know!) - no time for stop loss or anything: just dived off!

Then bought more BLT (from the ridiculous to the sublime!) - because it's a great stock long term, and it's also good for occasional leaping in and out as it can move through a 1 difference within just a few days. It went beyond 1800p recently and I reckon will do so again before too long (bit like DOO in that respect - nudging the next level up).

If I see a compelling reason to get back into NRK then I will - well, possibly...

Toya ..... you weren't a coward at all .... that is called good trading discipline

Thanks Cynic - I still have a lot to learn though!

Toya, I think you did a smart thing, once you have a profit, dive as u say. I think it will drop tomorrow - very high chance.

Toya....... I think it was in a market note sent by Barclays this morning

Thats what its all about getting in making a bit and then getting out, only to watch and perhaps jump in again for a bit more. thats the way i look at it and i have made a bit on this lot like i said earlier its sad to make money on the back of others misfortune, but it all pays the bills.

Well, I smell scorched fur. ;-))

what do you mean

Agree Big Al, albeit some of my scorched fur!