Because of recent turmoil in international money markets Northern Rock shares have taken a real nosedive. Would this be a good time to buy as a medium to long term investment?
2007-09-14 09:42:14 · 12 answers · asked by jamesawild 2 in Business & Finance ➔ Investing
Wait for a higher probability of a positive return on your investment. Wait for the stock to start an uptrend. Do not try catching a falling knife. You do not know how much lower it will go.
2007-09-14 11:33:42 · answer #1 · answered by trader 4 · 0⤊ 1⤋
Well they`ve dropped a huge amount today, closing at 439.75p after dropping throughout the day.
I think however, that is this is a knee jerk reaction to their announcement this morning, and everyone panicking like mad! The fact is the situation is nowhere near as bad as people think it is, theres been a lot of over exaggeration today.
As a result, I think when everyone realises they aren't going to collapse, and all banks are experiencing troubles, not just Northern Rock they will climb again. Will be a long time (if ever) before they reach the £12 or so they were at a few weeks ago, but I`m sure they will climb.
Obviously though its a risky business, I`ve seen a lot of people buy at 600p and then 550p and then panicking like mad this afternoon when they`ve dropped much lower!
I don't think there is much of a short term gain to be made, but long term they could be good.
Ironically, a lot of people have made fortunes today, betting on the fact that they will get lower, and this has made them a lot of money!
2007-09-14 10:05:36 · answer #2 · answered by Anonymous · 0⤊ 3⤋
I should wait and not risk it. There could be a takeover bid..
32% drop so far in share price is not good as it is to far to come back up and recover from in the short to medium term of say 6 months to 2 years.
After todays rush on the bank to close accounts and withdraw large sums in panic there could be a further drop. So all in all not to good.
If banks are your interest I should wait a week or two for things to settle and then do an over view of the situation.
Northern Rock troubles may have become headline news but the problem is more widespread than you think. American money markets, financial pensions investments, and mortgage loan agents etc and the Dow Jones index may be worth watching before you think of investing in British banks who have dealings with America.
2007-09-14 09:50:26 · answer #3 · answered by Nosey parker 5 · 0⤊ 3⤋
Possibly..... I believe legendary investor Warren Buffett once made a packet by buying up American Express shares many years ago when they plummeted due to some internal scam going on, and while everyone was panic selling (and the share price plummeting), bought a stackload of their shares knowing the company was good enough to bounce back.
http://www.gurufocus.com/news.php?id=6695
As for Northern Rock, may stand a chance if people take note of this article: http://www.fool.co.uk/news/your-money/2007/09/14/northern-rock-a-busted-bank.aspx
Here's the necessary blurb to research the shares:
http://quote.fool.co.uk/summary.aspx?s=NRK.L&tks=NRK
though the bit on the FORECAST part of it looks a bit mixed to me.
2007-09-14 10:09:52 · answer #4 · answered by Anonymous · 0⤊ 1⤋
If I had 5 Grand that i ought to have the money for to lose i could be tempted to purchase........yet never gamble in case you actual won't be in a position to have the money for the soreness. The panic will maximum probably be over in some days and each thing will return to ordinary until eventually the subsequent "engineered" disaster.
2016-11-15 05:58:56 · answer #5 · answered by ? 4 · 0⤊ 0⤋
I think I heard today that the price of Northern Rock shares had really dropped. This is a very good time to buy their shares, as it is always best to buy shares when the price is low. I don't know what the story is there exactly, but I daresay they will recover. By all means buy the shares, but don't buy too many just in case.
2007-09-14 09:52:19 · answer #6 · answered by Michelle T 2 · 1⤊ 3⤋
I must admit that's the first thing to cross my mind. It is profitable the only snag is they over exposed themselves in the short term money markets. So I think they will be a take over soon. Maybe an Indian Bank. I would look into buying some myself.
2007-09-14 10:56:41 · answer #7 · answered by Anonymous · 0⤊ 2⤋
This is pure lottery, anybody's guess is as good as another.
In a lottery, it is up to the player to choose his own ticket,
When playing lottery, advisers are superfluous .
I will not give any advice, I modestly admit my superfluousness ;-)
.
2007-09-14 10:12:58 · answer #8 · answered by pgreen 6 · 0⤊ 2⤋
Yep - sell high, buy low. Basic rule, but so few follow it
2007-09-14 09:49:54 · answer #9 · answered by Anonymous · 1⤊ 2⤋
down 20PC get in quick bit of pocket money.
2007-09-14 09:50:14 · answer #10 · answered by country bumpkin [sheep nurse] 7 · 0⤊ 2⤋