Wednesday, May 21, 2008
RBS out, Accident Exchange in
I sold all of my Royal Bank of Scotland shares. Boy, am I disappointed with this company. I sold the day of the rights issue. Around eight months after the shares were available at 600p, management have said they need to increase their capital ratios and want shareholders to buy additional new shares at 200p. None of these managers have been sacked, strangely. I managed to sell at 360p. I am well out. Shares now trade around 260p.
I've reinvested what was left in Accident Exchange group (LSE:ACE), a company I class as a special situation. Accident Exchange almost went bust in 2007. A number of court actions were taken against its business model and debtors stopped paying ACE, expecting them to go out of business.
The legal challenges were seen off and debtors have started paying again. The company recently announced they expect to meet market expectations of 14p EPS. I bought a load at 77p and expecting to make a substantial profit on these. Don't I always say that though?
The Artful Dodger
I've reinvested what was left in Accident Exchange group (LSE:ACE), a company I class as a special situation. Accident Exchange almost went bust in 2007. A number of court actions were taken against its business model and debtors stopped paying ACE, expecting them to go out of business.
The legal challenges were seen off and debtors have started paying again. The company recently announced they expect to meet market expectations of 14p EPS. I bought a load at 77p and expecting to make a substantial profit on these. Don't I always say that though?
The Artful Dodger
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