Have Royal Bank shares been oversold?
A report from Exane BNP Paribas today sheds a whole new light on Royal Bank of Scotland with the broker expressing an opinion that the shares have been oversold after being ignored by many during 2009. The broker believes that things can only get better for Royal Bank of Scotland in 2010 and while a planned disposal in Pakistan has collapsed due to regulatory issues it appears that investors are now willing to give the company another chance.
The positive research note is based upon the fact that the UK economy is on the verge of turning, there are more asset disposals planned for the future and indeed there is still a relatively strong underlying business within Royal Bank of Scotland. It is easy to forget that Royal Bank of Scotland was seen by many as the largest financial operation in the world at the height of the banking boom but has now fallen away to relative obscurity.
It is possible we will see investors regain their trust in Royal Bank of Scotland as and when the company delivers profits growth and a detailed plan for the future. However, until we see confirmation that this difficult period in the company's history is now over it is likely that investors will err on the side of caution and wait for positive news in the future.
Share this..
Related stories
Lloyds bank reports better-than-expected figures
Lloyds bank today reported better-than-expected figures for the year ended 31 December 2009 although there was still a pre-tax loss of £6.3 billion. This compares with a loss of £6.7 billion for the previous year and is markedly better than the £7.4 billion loss expected by many analysts. While this is certainly a step in the right direction there is still much work to be done with the group's...
Read MoreAward-winning fund manager Anthony Bolton calls a bull market
Award-winning fund manager Anthony Bolton has this week confirmed his opinion that the UK stock market is on the verge of a "multi-year" bull run. He believes that UK base rates will remain at historically low levels for the foreseeable future which should force more and more investors to look elsewhere for their income and increase investment in the UK stock market.
While there are...
Investors 'need to diversify'
Investors should consider diversification as the best way to ensure a sound financial future, an expert has claimed.According to Jason Butler, partner at financial planners Bloomsbury Financial Planning, an investor looking to secure good long-term gains should see a diverse portfolio and the passing of time as key to successful investing."Diversification and time are your two friends," he explain...
Read MoreEuropean Investment Bank approves $1.2 billion car industry loans
In a move which has been presented under the auspices of a green revolution in the European car industry, over $1.2 billion in loans have been cleared for EU car manufacturers. With the proviso that the funds are used to cut CO2 emissions and release cleaner cars to the car market, many car manufacturers will be relieved to say the least.
The likes of Nissan, Volkswagen and Jaguar L...
BSkyB places 10.4% stake in ITV
As expected, BSkyB has today confirmed the placing of 404.4 million shares in ITV at a price of 48.5p each. This now brings the company's shareholding in ITV down to 7.5%, a figure which the Competition Commission is happy with, although it does crystallise a £348 million loss on the 10.4% share sale. The company has confirmed that the residual 7.5% stake will be held in the medium term for inves...
Read More