Should we buy IRE at this level? First, we have to understand what is the cost of government ownership.
The government is planning to increase its stake in the bank from 36% to .. we don’t know yet. If it is to 75%, expect the stock to trade at $1.
This is because, we the shareholders get diluted from such a deal. So the best trade is to wait for the mess to settle. Let the government purchase its stake first. Then buy the bank. If you want to trade it, be careful. It may jump to $2, it could also dive down to $1. Or 80cts?
2 comments:
If you want to invest $1K-2K in IRE it's better to invest BAC to make profits. I add BBY to my portfolio. Let's see what is the impact of this Black Friday sale....
Anyway, I sold my SMART TECHNOLOGY (SMT) @9.67 from 8.07 to Buy Best Buy(BBY) today.
Thans dragon and tolits four your comments.
Post a Comment