any comments, thoughts, on this stock.

Branson to offer less than zero for the shares.....ie shareholders will have to pay him to bail out northern rock.

You are right, mitzy...


From The Sunday Times - October 14, 2007

Theres a chance Northern Rock is worth zero - John Waples, Business Editor

AS much as I would like to see a quick solution to Northern Rocks plight, I fear such a goal will be impossible. The farce surrounding the rescue of the stricken bank is doing untold damage to Britains reputation abroad, but there are now too many parties with entrenched interests to allow a quick deal to progress.

Sir Richard Bransons Virgin Group is the latest potential saviour, but the tough talking hasnt even started. Bransons proposal involves a huge dilution of existing Northern investors to under 50% of the companys equity and we dont even know what value he is putting on the shares yet.

Some of Britains smartest hedge funds have taken diametrically opposed views of the banks value. And there is a strong possibility that despite the takeover speculation that has pumped up the price to 273p, its real value could be close to zero. If an offer is made, an almighty tussle will break out between different shareholder factions.

In the end Northern might even be left on the shelf, close itself to new business and put its mortgage book into run-off. This would allow it to slowly repay the 13 billion government loan it has so far been handed. This week it is the Northern Rock boards turn to go before the Treasury committee.

More fingers will get pointed, but what we are discovering is Northerns collapse is not down to individual failing but a systemic one. And at the heart of it is the way the Bank of England, the Financial Services Authority and the Treasury have failed to get a grip on a problem that is exposing them to ever greater charges of incompetence every day this continues.

Incredible wheres all the money gone and massive dilution for the shareholders who will be left with 50p a share if anything..

Noted from yesterday's paper that Kasakhstan and Spain are on the brink of Northern Rockitis

The Spanish property market is in all sorts opf trouble i believe, not least because there is so much corruption and crookery involved in many of the developments - e.g. "free title" to your property actually not being so

Cynic,

I was thinking that 300 would be a price to short, as RAB has said they value it at 600 'ish. so your lost would be around 100 but the shares could fall to zero.

confess greed and adrenalin may persuade me to be foolish! .... very very bad logic as i would tell anyone else

In the words of UB40 - Only fools rush in. Anyone tempted by this atm should be treating it as a pure out and out gamble and only "betting" pin money.

you are absolutely correct and if i or anyone else is stupid enough to take the plunge, either long or short, then they know who is to blame when all ends in tears

Do u think Monday is a good time to short,cynic?

certainly better than a friday! ...... IF i do it, and not at all sure that i shall (and certainly shouldn't!), then would really like to see 295/300 which was the very recent high

down 50 p to 220p

so if you would have been (more than) happy to have shorted friday afternooon, do you now think to close that pos and BUY????

The weekend press were talking about posible deals where the shareholders get nothing. This doesn't ring true to me- directors are under an obligation to get the best deal taking into account the employees, which is not the same as making sure all jobs remain.

the directors do not have any legal or fiduciary obligations to the employees at all .... their obligations are to the shareholders ...... w/e press has merely highlighted what has been said for the last several weeks - i.e. no one has any idea at all what NRK may be worth, or more importantly, what anyone might be prepared to pay for it

Cynic I think you will find the Directors have a companies act duty to take acount of the employees.

probably no more than to say hello to them!

or good bye

Can anyone fill me in on why the sp have gone down so much today?

all the weekend press new oof interested parties in the com. would pay zero for the shares. enough to frighten shareholders off. cynic did you short this one today?