Originally Posted by
presto
just out of interest - would now be a 'great' time to buy northern rock shares? as with all this overreaction and plummeting share price, you could buy the shares now 'reletively cheap' and when (if) a take over comes in then the shares would rise, which would surely increase the share price.
or is that an over simplyfied explanation from someone who knows bugger all about shares?
just the question i was going to ask as the shares have dropped like a stone today,
OFF posted
"I wouldn't, as you run the risk of them becoming essentially worthless. Shareholders are the last people to be paid when a business liquidates.
They won't be able to sell the loans at anything like face value and after the creditors (soon to be the taxpayer) and depositors have had their money refunded there is unlikely to be any money left."
takeovers by HBSC and lloyds tsb are allready being talked about and the governments open chequebook stance will surely make sure they never go under, so is there any real risk in buying NR shares or could a quick buck be earned? from what iv'e heard today NR is now vastly undervalued on the stock exchange, i'm no expert but i could be tempted into a little dabble if the share price drops any further.
I have an impressive bank of knowledge and experience. Unfortunately, I've lost the combination to this bank.