# AIB - BOI shares a buy ?



## YoungCUB (7 Sep 2009)

I have about 5k to invest. I can't help thinking that when Nama takes over the Banks' Bad Loans, that they will pay over the odds, leaving AIB-BOI off the hook. If this happens, I suspect their share price will surge.

Its just intuition however what's the point of Nama unless it leaves the Banks' balance sheets looking good, while the taxpayer takes the hit albeit on the never never.

Anyone agree ?

Prepared to take a risk, as even mid to long term I can only see their share price rising. Or am I foolish and mis-guided ?


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## John Rambo (7 Sep 2009)

Discussion of the prospects of individual shares is not permitted on AAM...


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## John Rambo (7 Sep 2009)

However, you should avoid concentrating your investments in one area (e.g. Irish banks). There's still massive risks involved...NAMA may not work, shareholders could lose it all etc etc. Aim for a diversified balanced portfolio. If you want to invest in the stock market the likes of Dolmen and Merrion (and others) do ISEQ funds. Do not invest money you'd be devastated to lose.


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## YoungCUB (7 Sep 2009)

Thanks John Rambo - but would not be devastated to lose this amount...would take the risk. I don't think its a question of whether Nama will work but what will happen irish Bank Share prices after the deal on Bad Debts is done. 

If the price Nama pays will be the 20% discount on book value being mooted, and I believe the Govt/Nama will have no option but to leave the Banks in good shape, I reckon those Bank shares affected will increase.

I know its like putting money on a horse...just wondering what others think the odds are ?


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## DrMoriarty (8 Sep 2009)

Thread closed. YoungCUB, read the posting guidelines please.


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