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Online Share Trading

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Time to nible at Banks?

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Big_Bucks
Super Contributor
Talking of clever people in the market... Investec @ a PE of 8 is really tempting me, not calling the bottom but I'm prepaired to risk a little bit of downside to catch the upside which to my mind is iminent.A call warrant could return a neat profit when prices start to move up OMO ps. INTHEMONEY which shares is Nom.Tr. currently holding?
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13 REPLIES 13
kwagga
Super Contributor
Watch out for time decay on warrants. Talk is banks will under perform for the next six months. Warrants are short term investments. I think this could be the wrong call. Rather buy the share and keep for the duration of 08 with a nice firm stop loss or stay away. The downside risk on banking shares is still there. The first/second quarter of 08 is sure to raise some eyebrows when subprime losses are announced. This will impact SA banks prices directly. Be careful. omo
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555
Frequent Contributor
Here's my problem. Im sitting with Investec shares bought at 7881. This means that it's flirting with my 20% Stop loss. Do I break my rule and hang in there. ( Solid company which will recover ) or call it quits and get out ?
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Not applicable
555 - Ordinary shares or SSF? If SSF I would bail as I think we can expect further downside. Ordinary shares I would probably hold onto and wait for the recovery. My opinion only though.
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555
Frequent Contributor
Ordinary shares, so I think I will hang in there. New years resolution was to obey my rules. Didnt last to long, now did it !!!
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Not applicable
def not time to nibble on the banks...we havent heard the worst yet
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Wizard
Super Contributor
How about a short term play? I looked at the Banking index now and it seems to me it has formed a double bottom. RSI also moving up.
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Not applicable
I think the market has answered your question....
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kwagga
Super Contributor
Stick to your stop loss no matter what. Trading without discipline is a waste of time and money. Downside on INP is mid 50's.
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SIMBA
Super Contributor
I think chartist is right and there probably will be some more movment downwards.Unfortunately when we find out what the exact bottom is,its to late and the share would have already been rerated,unless you have family in the bank.I agree with you, fill your boots now with the chance of a nother 10% loss but more chance of a 40% gain over the next 6 months.......regards
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asylum
Super Contributor
yeah simba i dont look at it that way its ok if your a long term investor i would rather have my money in a sector thats got growth and would wait a little longer to invest in banks, i think with another possible interest rates hike and subprime fears banks will still be under pressure. There will be ample time to climb on the banks when the upturn comes in the mean time why not buy sectors of strengh so your money works for you right away instead of waiting for banks to turn around which could take a month six month or a year who knows? omo.
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jamoo
Frequent Contributor
hey, i have been nibbling on stb for a while. now i have a mouth full. my panic level is high. does anyone have any hint on STB?
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Not applicable
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Not applicable
Time to go short on SBK and Investec. Both fallen through current support levels!
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