H_B Posted September 20, 2007 Share Posted September 20, 2007 Of course, there is very good case to be made that the business is damaged beyond repair. Companies have recovered well from similar scale of problems before. But a few days ago, certain people were saying it was a sure thing and 'easy money' - that is clearly not the case. Depends. You could have traded out and made a decent profit if you bought at 280-300. There was always going to be a bounce back after the initial fall. Link to comment Share on other sites More sharing options...
joozy Posted September 20, 2007 Share Posted September 20, 2007 Companies have recovered well from similar scale of problems before. And some have went to the wall. Link to comment Share on other sites More sharing options...
AndyBud Posted September 20, 2007 Share Posted September 20, 2007 Northern Rock do a fair bit of high LTV business but they don't entertain people with a bad credit history. In the main they deal with folk with a pretty strong credit history. This was something I read the other day, but could very easily be mistaken. Still their high LTV business brings a greater element of risk to their loan book. I still think this investment is far riskier than has been made out on here, and is not the easy money ventured implied. This is a high risk, high expected return investment. Link to comment Share on other sites More sharing options...
Swampy Posted September 20, 2007 Share Posted September 20, 2007 Absolutely.What I've found quite - well, alarming - are people who have bought shares for the first time not realising how they work. The market partially depends on people like these, yet another way in which the stock market is analogous with the bookmaking industry. Be thankful for them because they're the people who make buying low and selling high largely possible for the dabbler Link to comment Share on other sites More sharing options...
qpsnapper Posted September 20, 2007 Share Posted September 20, 2007 Yep. The market will be waiting to see how they reinvent their business in the coming 12-18 months. The market is waiting to see who's going to buy them and for how much. Northern Rock won't exist in 12 months time. Link to comment Share on other sites More sharing options...
H_B Posted September 20, 2007 Share Posted September 20, 2007 The market is waiting to see who's going to buy them and for how much.Northern Rock won't exist in 12 months time. I think that's one scenario, obviously. We shall see. Link to comment Share on other sites More sharing options...
H Wragg Posted September 20, 2007 Share Posted September 20, 2007 Can someone explain to me what happens to the shares that people hold in Northern Rock in the event of them being taken over? Link to comment Share on other sites More sharing options...
qpsnapper Posted September 20, 2007 Share Posted September 20, 2007 In the event of a takeover another bank (probably) will make an offer to the current shareholders saying "We will offer you x amount for each of your shares". It could be a cash amount, it could be shares in the company that is making the offer, or it could be a mixture of cash and shares. You have to decide if you think that's a fair offer and tell them whether you wish to sell them your shares or not. If you accept, you send them your share certificate (if you have one) and a few weeks down the line you'll get a cheque/share certificate in the buying company. If you decide not to sell them, then you sit on your shares and see if anyone else will offer more. However, you may find that you have to sell them anyway, as if enough shareholders accept the offer (75% I think) then the company buying the shares can force the rest of the shareholders to sell them their shares. Ultimately the small shareholders will have little influence over the decision, as it'll be the city institutions (pension funds etc) with blocks of shares that will decide. Link to comment Share on other sites More sharing options...
Gaz Posted September 20, 2007 Share Posted September 20, 2007 What's also worth noting is that if you refuse to sell your shares, eventually they'll be de-listed (taken off the Stock Exchange) and will become worthless. Link to comment Share on other sites More sharing options...
H Wragg Posted September 20, 2007 Share Posted September 20, 2007 So buying shares is gambling after all? Link to comment Share on other sites More sharing options...
Swampy Posted September 20, 2007 Share Posted September 20, 2007 So buying shares is gambling after all? No, no, Fast Action already pointed out the difference between gambling and investment. Apparently buying shares stimulates the economy while every time you put a line on the football you're as well dropping a tenner into the Atlantic, since bookies don't imploy people or otherwise contribute to the common-weal. So, basically shares follow the natural order of things while dealing with a bookies is some kind of crazy financial vortex that only luminaries like Fast Action can really understand. Link to comment Share on other sites More sharing options...
BigBadSaint Posted September 20, 2007 Share Posted September 20, 2007 £1-85 if anyone's in the buying market Link to comment Share on other sites More sharing options...
Hebridean Posted September 20, 2007 Share Posted September 20, 2007 No, no, Fast Action already pointed out the difference between gambling and investment.Apparently buying shares stimulates the economy while every time you put a line on the football you're as well dropping a tenner into the Atlantic, since bookies don't imploy people or otherwise contribute to the common-weal. So, basically shares follow the natural order of things while dealing with a bookies is some kind of crazy financial vortex that only luminaries like Fast Action can really understand. I agree, and would be laughing my pants off were it not for the fact that Fast Action's investment is now worth £30k less than it was 2 days ago. 185 now Link to comment Share on other sites More sharing options...
Guest Fast_Action Posted September 20, 2007 Share Posted September 20, 2007 No, no, Fast Action already pointed out the difference between gambling and investment.Apparently buying shares stimulates the economy while every time you put a line on the football you're as well dropping a tenner into the Atlantic, since bookies don't imploy people or otherwise contribute to the common-weal. So, basically shares follow the natural order of things while dealing with a bookies is some kind of crazy financial vortex that only luminaries like Fast Action can really understand. Ne retiens pas tes larmes! Link to comment Share on other sites More sharing options...
Guest Fast_Action Posted September 20, 2007 Share Posted September 20, 2007 I love you too. But that's probably only because I don't really know what a divvy is. Now, I know Fast Action personally and have punched holes in his anti-betting opinion many times. He's contradicting himself very badly here, but people only reading this thread won't obviously be aware of his previous arguments. On reflection, my point was open to the interpretation you took from it. I would say your distancing between spread betting and share dealing is well and truly over the top though - especially in an opportunist situation like this. Want to explain the differences? Your problem is that you do not listen. You have form, and have been caught red handed yet again. Buying shares is an investment. Now please, can I leave the country for 24 hours without having to return to witness more of the Hebridean drivel? Link to comment Share on other sites More sharing options...
H Wragg Posted September 20, 2007 Share Posted September 20, 2007 Your problem is that you do not listen. You have form, and have been caught red handed yet again.Buying shares is an investment. Now please, can I leave the country for 24 hours without having to return to witness more of the Hebridean drivel? I'm maybe a wee bit wet behind the ears with this share dealing malarkey but if Northern Rock go tits up or, more likely, get bought for two bob are you not screwed? Link to comment Share on other sites More sharing options...
Hebridean Posted September 20, 2007 Share Posted September 20, 2007 can I leave the country Sure. Where you off to? I hear Malaysia is nice this time of year. Avoid Germany - they would probably catch up with you there. Link to comment Share on other sites More sharing options...
Guest Fast_Action Posted September 20, 2007 Share Posted September 20, 2007 Sure. Where you off to? I hear Malaysia is nice this time of year. Avoid Germany - they would probably catch up with you there. Like the Dundee fans and their sectarian singing, you have gambling on the brain. And in the same way - you don't see it. Link to comment Share on other sites More sharing options...
Hebridean Posted September 20, 2007 Share Posted September 20, 2007 Like the Dundee fans and their sectarian singing, you have gambling on the brain. And in the same way - you don't see it. Enlighten me Mr Leeson. Link to comment Share on other sites More sharing options...
Guest Fast_Action Posted September 20, 2007 Share Posted September 20, 2007 Like the Dundee fans and their sectarian singing, you have gambling on the brain. And in the same way - you don't see it. Enlighten me Mr Leeson. Not sure if he posts or not, but let me try:- First of all, the Dundee fans sing a sectarian song at their games, and they deny it. Secondly, you believe that investing is in shares is gambling, and you deny that. Hope this is clear. Happy to help. Link to comment Share on other sites More sharing options...
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