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Motley Fool Global Gains / GGS: Allied Irish Banks


Subject:  Re: AIB: finally exiting... Date:  12/25/2010  8:58 AM
Author:  anuragupta Number:  1195 of 1202


Why would you hold this if it is going to get delisted? Even without that I would have sold it as the govt ownership climbing up to 96% in next few months makes the game over here. Holding would make sense if there was any hope left. If there is let me know the rationale. I won't hold it for emotional reminders though.

Stocks like AIB were part of my high risk basket in my 200+ stock portfolio. The risk basket returns were good (not phenomenal as I had hoped for). In my risk basket of a dozen financial stocks, I lost on 6 - New Century finance corp, Imdymac bancorp, AIB, ACAS, NBG and LYG. The other six - USB, EZPW, OXPS, AINV, SCHW, PRAA recovered furiously. I am not listing my insurance companies in this basket - only banks and certain financial services that I deemed risky at one point. One could say that stocks like OXPS and SCHW were never that risky. But at the bottom of the turmoil they plummetted too and interestingly at that time AIB and NBG were not deemed as risky as today. Now since one can only loose 100% (mostly 70% after tax losses and counting all divs) and the gains are limitless the basket has a good chance of become profitable and it did since all the other doubled to quadrupled. If ACAS, LYG and NBG recover the basket would do even better. I did make one mistake that somewhat stunted the results of my risk basket. I invested about 50% more than my target in AIB (~$2000). The reason being this was twice rec'ced with half a dozen BBN listing at GG. This was never considered to be a high risk holding in my portfolio.

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