Saturday, December 08, 2007
RBS trading statement boosts banks
RBS issued a superb trading statement on Thursday. The bank announced that earnings for the year would exceed market expectations of 70.5p, despite a large writedown in the value of pooled mortgage investments. Furthermore, management wowed the market with news that the recent giant acquisition of ABN AMRO was proceeding better than forecast.
The shares briefly shot up abover 500p, but closed for the week around 485p. With the report of such strong trading, people are beginning to speculate on just how high the final dividend will be when the company announces results in March.
I started buying shares in RBS at 596p. I am currently way down on that purchase price and it looks as though the shareholding with make a negative contribution to my returns for the year. This is very disappointing. It is a shame that a decision I believe to be completely right is currently showing a large loss. I expect with time, RBS will go on to show a huge gain in my portfolio. The problem is that this will all come too late for 2007's result.
The promised trading update from RC Group is still to arrive. Here's hoping it will be along next week. I am also expecting news from SOCO International, which I also hope will be along in time for the end of the year.
The Artful Dodger
The shares briefly shot up abover 500p, but closed for the week around 485p. With the report of such strong trading, people are beginning to speculate on just how high the final dividend will be when the company announces results in March.
I started buying shares in RBS at 596p. I am currently way down on that purchase price and it looks as though the shareholding with make a negative contribution to my returns for the year. This is very disappointing. It is a shame that a decision I believe to be completely right is currently showing a large loss. I expect with time, RBS will go on to show a huge gain in my portfolio. The problem is that this will all come too late for 2007's result.
The promised trading update from RC Group is still to arrive. Here's hoping it will be along next week. I am also expecting news from SOCO International, which I also hope will be along in time for the end of the year.
The Artful Dodger
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