Good Afternoon ,
Another day of weak sentiment giving rise to a dawn of hope and some opportunistic buying of European ,UK and Irish stocks only for sentiment to give way again mid morning and markets which had clawed their way to positive territory rolled over for the second day in a row on cue at midday as the US woke up…The Dow jones weakness only helping to add further to the gloom.
The Grafton IMS statement was positive this morning , in so far as the tone of the wording was marked by the absence of negative language and we all knew January was a disaster so on the back of the CRH news yesterday , it looked obvious that if the market looked in anyway ok , that Grafton would be off to the races and so it was up just under 7% at one stage but giving away almost all of the gains by the end of the day.
Bank of Ireland trading at the 1.40 level is enough to make one sigh… I am sure Richie Boucher and the Department of finance and the other advisers who were on the fee gravy train last week, now look like they might have to wear some worry over the next few weeks with markets worried about a funding squeeze as bond spreads rise. I am sure that someone is bound to ask the question why no one took a decision during the firm placing of Eur500m which took place at Eur1.53 to just place as much stock as possible. It was afterall 3x to 4x oversubscribed ….if you believe the rumour mill. Better value every day….but typical of markets now the price is lower , no sign of the stampede into the stock.
The reality though is that based on our homework done by Sebastian the Guru ….it is our belief that buying the stock now and taking up the rights does present an opportunity to buy Bank of Ireland stock at a diluted post transaction average price of approximately Book Value which should provide support. Time to be brave…
CRH is back trading at attractive levels again also ….despite the further cut in 2010 expectations , 2011 looks like it will be brighter.
Time though to focus on the real big issue of the day…. The semi final of the under 8 Major League Cup where my sons team (that I co-manage) face the journey to Neilstown to take on mighty Oatfield FC…
The Greeks and the Spanish worries will still be unresolved by tomorrow , but hopefully
Have a good evening
Liam
___________________________________________
Liam Boggan
Merrion Stockbrokers
Tel.: 353-1-2404171
Mob:353-87-2313505
Disclaimer www.merrion-capital.com/disclaimer.html
Merrion Stockbrokers Limited (registration no. 307878) is a limited liability company whose registered office is at Block C, The Sweepstakes Centre, Ballsbridge,
No comments:
Post a Comment