any comments, thoughts, on this stock.

Been watching it, but broker downgrade today to 695p.
Stay clear of it for the moment, imo.

Also historical chart support at the 700p level, so I don't think the current sp will last.

More bad news...possibly another profit warning from Northern Rock


From The Times - August 16, 2007

Rates dilemma for Northern Rock as broker sounds warning - Christine Seib


Northern Rock refused to rule out further increases in the cost of its mortgages yesterday as speculation grew that Britains fastest-growing mortgage lender was on the brink of issuing another profit warning.

Shares in the bank hit a three-year low during trading, before closing down more than 5 per cent at 687p, after Collins Stewart, the broker, said there was a clear risk of a profits warning if wholesale borrowing costs continued to rise into the fourth quarter.

Northern Rock is one of the UKs most aggressive lenders, having captured 9.7 per cent of the residential mortgage market in the first half, up from 8.7 per cent at the same time last year.

A Northern Rock spokesman admitted that conditions in the wholesale borrowing market were difficult, but said that the bank was still able to find funding for its business.

On Tuesday, its shares fell 14p to 726p after analysts at Credit Suisse said that there was a chance that the bank would further downgrade full-year guidance at some point soon.

Northern Rock shocked the stock market with a profits warning in June. As it has only a limited deposit business, and thus does not have large pools of cash to draw on, the bank borrows from the capital markets to fund its mortgage lending.

Earlier this year the cost of wholesale borrowing rose more quickly than the Bank of England increased the base rate, which meant that Northern Rocks could not pass on its higher cost of borrowing to customers. The bank also failed to hedge against increases in the wholesale rate.

Last week interbank borrowing rates spiked again, after banks, spooked by losses on US mortgage-backed securities, became nervous about lending to each other.

Northern Rock downgrade - MoneyAM

Deutsche Bank has downgraded Northern Rock target price to 695p from 790p with a sell stance.

In a note published this morning, Deutsche Bank said that the recent increased cost of funding in wholesale and debt capital markets is negative for all UK banks, but particularly Northern Rock where 85% of its net funding flow in H1 2007 was non-retail.

The broker added that this, combined with a further steepening of the short end of the yield curve, intense competition in the mortgage market and an expected deterioration in secured credit costs places downside risks to its 2008 forecasts for the group, which are already 12% below consensus.

views on northern rock statement after closing bell

NORTHERN ROCK PLC

ASSET DISPOSALS & INVESTMENTS - 20 AUGUST 2007

"Northern Rock informs the market that it completed the sale of approximately
??465 million of Commercial Secured loans to Lehman Commercial Mortgage Conduit
Limited (LCMCL) (a wholly owned subsidiary of Lehman Brothers), on 20 August
2007. This sale, completed at the expected price, follows the sale on 22 June
of ??838 million of Commercial Secured Loans to LCMCL and was the next phase of
that transaction, which was reported in the pre-close statement made on 27 June
2007. This sale is made in accordance with Northern Rock's previously stated
strategy of removing higher risk weighted assets from its balance sheet,
following receipt of its Basle II IRB waiver.

In response to investor enquiries we are also taking this opportunity to provide
an update on Northern Rock's holding of US Collateralised Debt Obligations
(CDOs) and US home equity mortgage backed securities within its Treasury banking
book.

Northern Rock's total investment in these asset classes is minimal, representing
0.24% of reported total assets of ??113 billion at 30 June 2007. These
investments are intended to be held to their maturity and none have been
downgraded or had their outlook changed by any rating agency.

Northern Rock's investment in US CDOs amounts to approximately ??200 million, all
of which is investment grade (59% AAA, 28% AA, 8% A and 5% BBB). The Company has
no exposure to the equity tranches of any US CDOs. The investment in US home
equity mortgage backed securities amounts to approximately ??75 million, all of
which are rated AAA. These securities have a duration of less than two years and
no exposure to 2006 or 2007 lending.

Northern Rock's Quarter three statement is due to be announced on 1 October
2007."

Keep on selling down to 500p.

It was up 17p this morning...now down 17p at 699p.

STOCKWATCH Northern Rock down; Panmure Gordon repeats 'sell',target under review


LONDON (Thomson Financial) - Shares in Northern Rock PLC were lower this
morning, as a statement after the close yesterday failed to ease investors'
credit concerns, with Panmure Gordon reiterating its 'sell' recommendation this
morning.
At 10.04am, Northern Rock were down 16-1/2 pence at 699-1/2, while the FTSE
100 was down 17.7 points at 6,061.0.
Last night after the close, Northern Rock said its investments in high-risk
US mortgage-backed securities and Collaterised Debt Obligations (CDOs) are
"minimal," as it reported the sale of 465 mln stg in secured loans to investment
bank Lehman Brothers.
In a note this morning, Panmure Gordon reiterated that it put its forecasts
and price target on Northern Rock under review last week, and it
continues with that given the market fluctuations, but yesterday's news adds to
the broker's perception of downside earnings risk.

There is more rife rumours that Northern Rock will be coming up with another profit warning. SELL at 674p now.

hlyeo98- I would not be surprised given the wholesale lending rate is about 0.6% above the 5.75% base rate. If confidence remains at a low ebb, this margin may increase. I am looking to buy some shares but, will hold back for now.

this time NEXT YEAR .NRK will not cost you 672p. ITS GOT TO BE CHEAP. LETS HOPE SANTANDER, WILL COME A LOOKING.

Looking very cheap.

Looking cheap and getting cheaper sell now its flawed.

Chart support at.........570? After that..........?

Under 5 already with over 6 million traded by 8:10! Glad I didn't get sucked into the speculation rumours

LONDON (Thomson Financial) - "Adam Applegarth, chief executive of struggling UK mortgage lender Northern Rock PLC, said an emergency borrowing facility it has negotiated with the Bank of England will be capped by the amount of collateral it can provide.
'It is determined by collateral. Given that we are using our mortgage assets as collateral, it's clearly a substantial amount,' he told reporters on a conference call.

Applegarth declined to comment on the interest rate it will pay. According to press reports, borrowing under the facility will be charged at a punitive rate of 6.75 pct.

The Northern Rock CEO also declined to say how long the borrowing facility will be available.

'It is of sufficient duration in the Bank of England's view to see us through the liquidity freeze,' he said.

Earlier today, Northern Rock said it had negotiated emergency funding from the BoE after being hit by the credit crunch, and issued its second profit warning in three months.

Northern Rock said its 2007 underlying pretax profit looks set to come in at 500-540 mln stg, down from 588 mln stg last year, and below the current consensus analyst forecast of 647 mln stg."

Glad I didn't get into Northern Crock...but will keep an eye on the sp and try and get in at/near the bottom for recovery play

wonder if AL. is not a better recovery play