AIB - Allied Irish Banks plc (NYSE Stock)

[Aufan 1983]

I'm in this one on the huge fall that took place on 1-20-09. Ru also think this is an excellent play and should bounce nicely. The 52 week high is 47.72 and the low is 1.03 which took place on 1-20-09

AIB was thought to be a target to be nationalized and there was also an announcement that another Irish Bank with a name semi close to Allied was in fact being nationalized. The bank being taken is actually named Anglo Irish Bank.

Don't confuse the two names Anglo has been hit by a scandal and also made some very risky choices that came back to take them down

Here is what was said today about our play (AIB) Allied Irish Banks:

DUBLIN, Ireland (AP) -- Ireland ruled out nationalizing the country's top two banks Tuesday as lawmakers voted to take control of the country's third-largest, scandal-struck Anglo Irish Bank.

The emergency parliamentary debate coincided with a second straight day of stunning falls in the value of Ireland's biggest financial institution, Allied Irish Banks PLC, while No. 2 Bank of Ireland rallied weakly after striking its own new record low.

Finance Minister Brian Lenihan told lawmakers the nationalization of Anglo must proceed -- but would not trigger a domino effect ending in takeovers of Allied Irish and Bank of Ireland, too.

Dail Eireann, Ireland's parliament, backed the nationalization bill in a 79-67 vote. President Mary McAleese was expected to sign it into law within hours.

Lenihan stressed that Ireland's two dominant banks were more diversified and better funded than Anglo, a small-business lender especially exposed to the collapse of Ireland's construction-driven "Celtic Tiger" economy.


Check out the chart and the fall:
AIB - SharpCharts from StockCharts.com

[Aufan 1983]

Price is down this morning and I would love to add some at this level but can't buy yet.

Does anyone know how people buy pre - premarket? Someone is buying and selling.

[thegreatgate]

This was a hell of a pick by RU!!! I remember when this pick was announced AIB was going for $1.29 in pre-market. That was last Wednesday (3 trading days ago)

Pre-market ask: $2.43
Pre-market bid: $2.31

[Aufan 1983]

Originally Posted by thegreatgate

This was a hell of a pick by RU!!! I remember when this pick was announced AIB was going for $1.29 in pre-market. That was last Wednesday (3 trading days ago)

Pre-market ask: $2.43
Pre-market bid: $2.31

Ru has done VERY, VERY well on this one. He is still holding.

Here is an article that calls AIB " The Best Opportunity Of The Decade"





The Best Opportunity This Decade
By Jim Mueller
January 26, 2009 |


Over the past 60 years, the United States has seen, and survived, 10 recessions (not counting the one we're currently in). From the shortest one -- six months in 1980 -- to the two that spanned 1973-1975 and 1981-1982, we've muddled through and come out the other side. In between each, we've experienced, on average, almost five years of expansion.

So while we are in another recession right now and a big bear market, I'm excited!

Pardon me while I wipe my chin
First, we have a whole bunch of people running around in panic mode crying, "The sky is falling!" They don't want to hold stocks during a recession, so they're willing to sell them -- cheap.

Second, the news media fans the flames of panic with constant stories about weakening consumer spending and how the recession is hurting everything from Amazon.com (Nasdaq: AMZN) to ZymoGenetics.

Third, we've got a handful of really hated companies. Specifically, I'm talking about the banks, thrifts, and builders that caused and are feeling the fallout from the mess we're in.

What does that add up to? Bargains.

Like a kid in a candy store ... and the candy's on sale
One option is one of the banks -- specifically Allied Irish Banks (NYSE: AIB). Even though it has had to accept capital from the Irish government, it is probably still the best of the Irish banks. Fears that the bank will be nationalized have driven the stock to really low levels. If it can survive the downturn in the Irish economy and stay far away from the Irish government, it could turn into a fantastic investment from this point forward.

There's also the investment bankers and brokerages. Some, like Morgan Stanley (NYSE: MS) might be worth investing in. Heck, if it gets cheap enough, I'll even take a closer look. (Even possibly bad companies can be good investments if you get them at the right price.)

Then there are (still) the retailers, trying to survive declining same store sales and decreased consumer spending. This is where a strong balance sheet is helpful. Gap (NYSE: GPS), for instance, has $1.4 billion in net cash and short term investments. As long as cash flow keeps coming, and it has so far, the company should survive to become great again.

Even some big name companies in defensive industries have been dragged down. Merck (NYSE: MRK), maker of a lot of the drugs we take, for instance. The stock has been falling for most of the past year.

[Aufan 1983]

4.10 now in premarket

SWEEEEEEEEEEEET

Big money make so far!!!!!!!!!! Congrats Penny and Ru!!!!!!!!!!

[pennyfrog]

Any thought of getting out of AIB Auf This has been one hell of a ride.I`m up 189%

[Aufan 1983]

Originally Posted by pennyfrog

Any thought of getting out of AIB Auf This has been one hell of a ride.I`m up 189%

I'm going to ride most of them. I may sell a few but the majority I'm going SEMI long....lol

[Ericp501]

filling gaps?

[BadThad]

Stock down almost 20% today. Some news:

Allied Irish Banks, plc Announces Revised Agreement With Irish Government
2:00am EST
Allied Irish Banks, plc announced that on December 22, capital measures agreed with the Irish Government, Allied Irish Banks has been in further negotiations with the Government. These negotiations have now concluded with a revised agreement, outline details of which are contained in today's separate statement by the Minister for Finance. That statement refers to the recapitalisation of AIB and Bank of Ireland and is appended to this announcement for ease of reference. The Government has offered and the Company have accepted total core tier one capital of EUR3.5 billion. The total represents an increase of EUR1.5 billion over the EUR2 billion previously agreed and the agreement contains features designed to assure the market of our stability and independent future. The preference shares have a fixed coupon of 8% and may be repurchased at our option. The Government, as a matter of priority, is to examine and produce proposals for the management and reduction of risks in respect of the banks’ property and land development portfolios. Government is entitled to warrants over new units of ordinary stock representing 25% of existing share capital as enlarged by the warrants, exercisable after five years. Government entitlement to warrants will be reduced pro rata to a minimum of 15% of existing share capital as enlarged by the warrants in the event that AIB raises new core tier one capital of up to EUR1.5 billion prior to December 31, 2009.

[BadThad]

Stock up huge lately:

Allied Irish Banks, p.l.c. 2008 Preliminary Results