Barclays PLC (ADR) (BCS)

msnmax (98.62) Submitted: 6/07/08 9:37 AM : Start Price: $25.84 BCS Score: 14.14

I like their refusal to raise capital at such low prices. Probably they care a little about shareholders. The dividend is tremendous. There is now way way they could fail. The British taxpayers will surely take care of that if the need arises. I did not like them trying to buy this ABN Amro last year, but luckily greater fools came by. Generally big banks are one of the most secure investments there is, despite all the fearmongering. Even if they raise some capital 10-20 % dilution is not the end of the world. Those distressed assets could get written up when the crisis dissipates. Banks will be there forever and the big banks are mostly preferable to small ones for the majority of customers. And again government intervention in case of bankrupcy danger is more likely here than elsewhere.

Report this Post Replies: 0 | Reply