The AIB thread


#2044

Some sane commentary:

irishtimes.com/business/sect … -1.2006095


#2045

Any “investors” who were surprised by Noonan’s comment really ought not to be managing their own money.

There has been much commentary on the price and lack of free float in the mainstream financial media.

e.g. from over a year ago

ftalphaville.ft.com/2013/10/21/1 … et-in-aib/


#2046

Probably the same sort of investors who filled their boots with property in 2007.


#2047

It’s impossible to short the stock. Has been for several years. You also can’t buy a put on it (to my knowledge - or at least anyone willing to sell you a put would charge an astronomical premium). If you could short it, the stock would be trading much closer to fair value.


#2048

Followed by some insane commentary at the bottom. God help me, but some people deserve to be separated from their money:

XX XX XX


#2049

Maybe he’d be interested in a share of an apartment in Mountjoy Square too? After losing €6k he should cannily diversify his investments.


#2050

Would it surprise you to hear that he’s a landlord?

jud6.org/legalcommunity/lega … nleavy.htm


#2051

AIB branches to be sold on at a loss.

irishtimes.com/business/sect … -1.2014564

What are the chances AIB will exercise their break options.

I understand why banks wanted to have a street presence in the past with big impressive facades to give the impression of solidity but Irish Banks have been exposed for what they are and no amount of cut stone columns and high windows can compensate for that which brings me to thinking that these buildings along with Churches will make quiet nice pubs, restuarants and clubs in coming decades.
Temples of worship to Money and sky fairies will be retasked.


#2052

As pointed out on askaboutmoney, IG are now allowing short selling of AIB shares via spread betting.

ig.com/uk/ig-shares/allied-i … eq-ALBK-IE

Even Noonan says AIB is overvalued. Perhaps, there is profit to be made with a short trade with a long dated expiry date.


#2053

That’s not right. While it may look like you can short AIB on IG, they won’t allow you to because the shares are “unborrowable”.


#2054

independent.ie/business/comm … 42738.html


#2055

:confused:

it’s spread betting - there’s no requirement to “borrow” the underlying


#2056

More financially illiterate journalism from arts graduates. The losses in Ulster bank are already well over provisioned and on the balance sheet and written of on the P&L.


#2057

But IG have made it a requirement for that specific stock (and dozens of others). If you try to go short AIB with IG they will reject your trade, giving the reason that it is “unborrowable”.


#2058

Government raises value of AIB stake to €13.3bn

irishexaminer.com/business/g … 06020.html


#2059

Duffy quits. Salary cap obviously starting to grate.

irishtimes.com/business/fina … -1.2071016


#2060

salary cap or knowing that so many on lower grades in AIB get paid near as much as you.

thejournal.ie/over-1000-aib- … 9-Apr2015/

1 in 10 of the employees are on over 100,000.
Seems a bit top heavy if that is the case especially as it is primarily a retail bank not an investment bank but I don’t claim to know much about banking.
How many of those big earners are doing the trudge of repo’ing non-performing mortgages. They could easily justify their salaries if they were repo’d properties.


#2061

Take home pay of somebody earning €100k in AIB is €4,500 (approx) per month. Someone running the show gets €20,500 per month. As such I don’t believe he was really worried about about how well some young high fliers were doing :slight_smile:

IIRC his new salary will increase his take-home pay to approx €60k per month.


#2062

IG want to be able to hedge the position - if they can’t borrow the share to short it, they can’t hedge your bet


#2063

Obviously but a lot of spreadbetters don’t bother hedging because most punters invariable lose their money eventually anyway…