If you had your 'life savings' in Northern Rock, what would you do?

[Lokki 7]

I think we should have another poll for all those 'buy NR shares' merchants.

Of course there is money to be made but the key is the timing. It's no good to say today "buying NR shares will make you rich" and then coming back here in a week or two and saying "told you so" when you have given no indication of when you did (or would have) actually been brave enough to actually buy some stock.

Put your knickers back on love. Tell you what, I'll give you the wink when the smart money goes in, but seeing as you ignored my INSPIRED options trade a few weeks ago I'm sure this will be no different.

Edit: Just in case you forgot, posted on the 15th Aug;

If you want to make money from the stock market at the moment i'd suggest selling a call option on the FTSE. Sell Sep-07 6425 calls at 56. If the market isn't above 6481 on 21st Sep you are in profit (ignoring transaction costs). Any level below 6425 you make 56 points. Current market level approx 6120. It's a GAMBLE but I can't see a rally of that magnitude by Sep expiry given whats happening in the credit market. Fill your boots and take advantage of these high volatility levels.

By the way, you have not been charged for this information.

 

[Bozza]

If the market isn't above 6481 on 21st Sep you are in profit (ignoring transaction costs). Any level below 6425 you make 56 points. Current market level approx 6120. It's a GAMBLE but I can't see a rally of that magnitude by Sep expiry given whats happening in the credit market.

How was that proposition looking towards the end of September when the FTSE-100 had rallied from around 5870 to 6370ish in 2 weeks?

 

[Ernest]

I just got my money out in time as Dick Tight and Fartin' Martin were behind me in the queue, PROBABLY going to take out the transfer BUDGET for the rest of the SEASON.
I don't think Northern Rock will miss that £75 though

 

[Lokki 7]

How was that proposition looking towards the end of September when the FTSE-100 had rallied from around 5870 to 6370ish in 2 weeks?

That's the nature of the game. If it were easy it'd be no fun.

 

[Bozza]

That's the nature of the game. If it were easy it'd be no fun.

Gotcha - so a rally of that magnitude can happen in 2 weeks. Just not in a month

 

[Pavilionaire]

This is all about confidence and, YES, if I were an account holder at NR with my life savings invested I'd have already pulled the money out by now.

It's not just about the building society going under but also the ability of the management to make good investment decisions, which they clearly haven't. Assuming one's life savings run into the thousands you are talking about hundreds of pounds of interest each year.

 

[Lokki 7]

Gotcha - so a rally of that magnitude can happen in 2 weeks. Just not in a month

The important thing to remember here is that I am right.

 

[Cian]

This is all about confidence and, YES, if I were an account holder at NR with my life savings invested I'd have already pulled the money out by now.

It's not just about the building society going under but also the ability of the management to make good investment decisions, which they clearly haven't. Assuming one's life savings run into the thousands you are talking about hundreds of pounds of interest each year.

This had nothing to do with investments, though...

 

[nail-Z]

I think we should have another poll for all those 'buy NR shares' merchants.

Of course there is money to be made but the key is the timing. It's no good to say today "buying NR shares will make you rich" and then coming back here in a week or two and saying "told you so" when you have given no indication of when you did (or would have) actually been brave enough to actually buy some stock.

If they get down to £2 I may have a nibble myself...

 

[Drumstick]

As I walked past the northern Rock in town today there was a que heading half way down the street! I quess alot of people dont trust it.

 

[cjd]

If you had more than £35,000 in their accounts, you,d have to be a brave man to leave it there.
This situation seriously needs more than the limp statements being made by Mr. Darling etc etc to calm the investors. If Northern Rock do go under and investors lose money, the knock on effects for ALL banks and EVERYONE would be huge.

At last....................Mr.darling has seen the light.

 

[The Clown of Pevensey Bay]

By giving a CAST IRON GUARANTEE that the government will back up Northern Rock savings if they go tits up, the Chancellor has technically made NR safer than the Bank of England, hasn't he?

Presumably there will be QUEUES of people waiting to put their money IN in the morning.

 

[cjd]

Put your knickers back on love. Tell you what, I'll give you the wink when the smart money goes in, but seeing as you ignored my INSPIRED options trade a few weeks ago I'm sure this will be no different.

Edit: Just in case you forgot, posted on the 15th Aug;

Do you think the share price, following Mr.Darlings announcement will stabilise for NR, Lokki...?

 

[Lokki 7]

Do you think the share price, following Mr.Darlings announcement will stabilise for NR, Lokki...?

Seems to have done this morning. Rallied up to £3 yesterday into the close and holding around the £3.15 level so far today. Could still be very volatile depending on news. Personally I think at some point this month it will test the £2.50 level again but it's an almost impossible one to call without inside info. Received valuation levels from various research departments today and they all value the company over £3 per share, for what it's worth.

 

[Buzzer]

Seems to have done this morning. Rallied up to £3 yesterday into the close and holding around the £3.15 level so far today. Could still be very volatile depending on news. Personally I think at some point this month it will test the £2.50 level again but it's an almost impossible one to call without inside info. Received valuation levels from various research departments today and they all value the company over £3 per share, for what it's worth.

Ripe for a takeover, especially if the Government is underwriting EVERY penny of investor's money.

 

[Uncle Spielberg]

I think the Northern Rock brand name is damaged beyond repair now. I believe they will be taken over probably by the Halifax HBOS group or a foreign bank looking to expand their mortgage book, possibly the Spanish bank that owns the Abbey. Basically the British public do not trust financial institutions or the government no matter what they say.

Northern Rock RIP.

 

[Cian]

Danske Bank are another possibility, particularly as they are about to bring their Northern brand (Northern Irish) in to Britain, a pre-made branch network with a similar name could be useful.

 

[Blackadder]

Going back to the original poll. It all depends on how much your life savings are?

If only a few grand leave them where they are.

What surprises me (and it's not just NR) is why some people have hundreds of thousands or millions in one place !!

Surely it makes sense to spread your money in different accounts.

 

[nail-Z]

Put your knickers back on love. Tell you what, I'll give you the wink when the smart money goes in, but seeing as you ignored my INSPIRED options trade a few weeks ago I'm sure this will be no different.

Edit: Just in case you forgot, posted on the 15th Aug;

Worth a bounce?

Originally Posted by Lokki 7
If you want to make money from the stock market at the moment i'd suggest selling a call option on the FTSE. Sell Sep-07 6425 calls at 56. If the market isn't above 6481 on 21st Sep you are in profit (ignoring transaction costs). Any level below 6425 you make 56 points. Current market level approx 6120. It's a GAMBLE but I can't see a rally of that magnitude by Sep expiry given whats happening in the credit market. Fill your boots and take advantage of these high volatility levels.

By the way, you have not been charged for this information.

 

[El Presidente]

Worth a bounce?

With the FTSE at 6419 presently, perhaps not