Northen rock

Not strictly for this forum, but whats the opinion on Northen Rock, is it worth picking up a few shares or have i missed the boat?

I think of the saying "never catch a falling knife". Northern Rock is volatile, not the same as a value play. None of the three bidders are looking at giving the shareholders much more than zero.

And adding to what James has said, I wouldn't generally risk it at the moment even though I know thats what brokers is all about it really isn't worth the general risk mate. I heard one of the main men resigned yesterday? Least I think.

Matt Ridley the chairman did resign.

I was personally thinking of buying the day after the announcement, thinking it's bound to go up. It did, but after it halved! Inertia is not always deadly.

How come the Share price has been quite stable today, even though share prices have fallen dramatically?

I noticed that too, However.. Parin did you decide to invest or not? I'd like to know if you did . I might think about investing in companies some more if anybody has any faviorites.

I decided against it! Did some research and found there are still some unanswered questions from within Northern Rock.....Big one being, the real reason behind the loan from the BofE.

Also the market has been going up and down like a yo yo, so I guess the institutional investors are trying to dupe un small fry into dabbling.

Im still interested though and will keep you up to date on what i find.

I considered placing Northern Rock in my portfolio but I decided against it in the end, I did however buy in the Alliance & Leicester when they fell and consquently rose - nice buy

I've been looking into it a bit further - NR have borrowed a whopping £28 billion! How are they going to service this debt? How is anyone going to take over the bank with a debt of £28b? As james stated earlier and potential buyers want the company for nothing! ie stay away for now.

There is a funny stat flying around at the mo. - The money borrowed from the bofe is our money (as a country) and so all taxpayers have in turn lent Northern Rock £700 each.

Hi Parin

Thats a pretty crazy stat I like it £700 each - no wonder my current account is overdrawn, they have sucked it right from my account!

The intersting thing thou is at what point does the borrowing stop, if its at £28 billion now - do the bank of england just wave the hand forever?