Bank of Ireland (ADR) (IRE)

I am a long-term holder of this stock and did my due diligence. I even read the financial statements. I did not understand why it was dropping other than some sort of general "banking panic" until I cam across an article (quote below), which explained it is an issue of solvency and manipulative accounting and practices to delay the inevitable defaults. Let's just say, if it were not for the absent of "mark-to-market" rules in ireland, this bank would have gone iinsolvent months ago.

Having said that, with continued government bailouts this bank may be a long-tome survivor. But expect another share crash, another bailout (ganble), and then a sustained recovery. Sell now, short it even, and after the next financial statement shows the true color of their loan quslity buy it after the crash if you are a believer. This stock si THE classical falling knife!

"The second and more serious problem, (which, it must be said, remains unacknowledged by bank management, the financial regulator and the Irish government) is solvency. The question concerning solvency has arisen due to domestic problems in the crashing Irish property market. Bank of Ireland, like most Irish financial institutions, has exposure to property developers in their loan portfolio. These property developers are currently suffering from gross over-supply of property, much still unsold, while demand has evaporated. The massive immigration from Eastern Europe which had propped up demand has now reversed due to rapidly rising unemployment in Ireland. Irish property developers own speculated billions of Euros of overvalued land parcels such as urban brownfield and greenfield sites, and also agricultural land at an average value of €23,600 per acre ($32,000 per acre or €60,000 per hectare)[12] which is several multiples above the value of equivalent land in other European countries.

Irish banks correctly identify a systematic risk of triggering an even more severe financial crisis in Ireland if they were to call in the loans as they fall due. The loans are subject to terms and conditions, referred to as "covenants". These covenants are being waived[13] in fear of provoking the (inevitable) bankruptcy of many property developers and Irish banks are thought to be "lending some developers further cash to pay their interest bills, which means that they are not classified as 'bad debts' by the banks"[14]. Furthermore, Bank of Ireland's impairment provisions are not being increased correspondingly on their balance sheet. Their accounts for the last financial year states a bad debt provision of only €46 million which is a reduction of 8% from the previous year[15]. This does not appear to be consistent with the real negative changes taking place in property market fundamentals. It should be said, however, that this is in line with most financial institutions' projected figures; doubtless a more realistic estimate will be made when next their accounts are published"

The Bank of Ireland has something great going for it, it's a bank in Ireland! I spoke with some investors and they claimed to have seen a rainbow near the bank's headquarters. One can only guess that they have a Leprechaun guarding the bank.

That in itself gives a thumbs up.

My arguments are very simple low PE.

That’s my real portfolio

1/3-MTL,

1/3-AIB,

1/3-IRE,

My sister in the UK tells me all her friends are putting their savings at IRE due to the government guarantee

Irish & UK regional bank that was a market darling a little while back & has fallen out of favor for no apparent reason. 11.2 PE, 24% profit margin, 26% ROE, 4.5% div yield (5 yr avg is 2.7%), 25% payout ratio.

seems really inexpensive, what the heck is going on across the pond.....did our friends have too much to drink?

As foreign stocks go, this one has been a winner for me. I've owned it for some time, now. It is a fairly fast growing bank in a country where the financial outlook is bright. At this point it seems to be undervalued with substantial growth potential.

The Bank of Ireland is one of the best ways for small investors to gain access to the Emerald Isle - a country with phenomenal economic growth and stability, and no communist regime. Did I mention the 4+% yield? (I have no financial interest in this company.)

The Bank of Ireland's stock price has been hit like all of the banks from the sub-prime mortgage fiasco. However, there is exposure is not that great. They give a good dividend, and can hold out until the price of the stock corrects itself to its actual value or even greater. I think all it will take is a good annual report, and buyers will start seeing that this bank is different than all of the other banks that are in crisis.

Cheap and on the up. And a much safer buy than Allied Irish Bank.

If this stock can ever get back to the range it was it, with the dividend it had, cha ching!

IRE is the number one bank in Ireland. It is trading within spitting distance of its 52 week low and it's yield is 10.6%. P/E raio is 3.98. This is a solid bank that is not going to go away. Pure value play and you get to collect a hefty dividend while you wait.

a strong bank with a cheap stock, even if the stock only comes back to 25% of it highs, that is still double of where it is now. plus it has a great yield and dividend.

Really tempted to take profits on this, but if it is really a good bank it could turn into much much more. With a PE of less than 1? they have the ability to reach for the previous highs or 50 - 90 $.

Target - 1,000 points!

Another great valuation although it is exposed to mortgages in UK and Ireland. Good dividend. I would suggest buying it on the LSE, due to higher dividends.

So far off the 52-wk high. I don't anticipate returning to those levels anytime soon, but I do think this has strong growth ahead, especially as buying interest has increased recently. I would say go long.

buy low / sale > over $10.00 by >June ,2009

Boo-Yah Skee-Daddy!!!!

If you have a while, this one is just silly. The P/E ratio is just stoopid, spelled with two O's. (Like the word Fool. My own addition to the vocabulary.) True, it is a bank, so for crying out loud, earnings are going to go down... but with a divident like that, it will likely still be better than putting your money INTO the bank. (Oh, the irony.)