Royal Bank of Scotland (RBS)

[winston]

not vested

British Banks Are Cheap

The Royal Bank of Scotland (RBS) is no stranger to wild swings, even though it happens to be the fourth largest U.K. bank by market cap.

The stock has been pummeled since the global financial crisis:

Although RBS currently has no dividend payout, there are some huge factors that outweigh this grievance.

The first is from fabled investor Peter Lynch: “Whatever the queen is selling, buy it.” After the rescue of RBS by the British government in late 2008, the Crown now holds about 73% ownership in RBS. The sale of these shares to the public will be a firesale, and savvy investors love nothing more.

Secondly, Royal Bank of Scotland is currently selling at 35% of its book value, the value of the assets it can lay claim to as a business.

The fourth largest bank in the financial capital of the world selling at 65% discount to what its underlying assets would fetch on the open market? Sign me up. Not only are we getting the banking business for nothing, we’re literally being paid to invest in it!

Yesterday’s losers are often tomorrow’s winners, and RBS could very well be the cream of that winning crop. This is truly a window of opportunity, as buying pressure from the Crown’s selling, diminished worry over the state of the U.K., and a possible dividend institution at some point in the future will make this stock an easy bet.

Why miss out on a stock that will triple just by being fairly valued?

Source: Daily Trade Alert

[winston]

not vested

Blue-Chip Stocks to Sell: Royal Bank of Scotland (RBS)

by Elliott Brown

Royal Bank of Scotland Group PLC (NYSE:RBS) was one of the biggest suckers in the financial crisis. Through greed and ignorance RBS bought a huge amount of the credit default swaps and collateral debt obligations that were the repackaged subprime mortgage debt.

It was also found to be manipulating the markets a number of times in the past eight years. Last month it was reported that RBS was looking at a $27 billion legal bill this year. And that’s a decade after the financial meltdown.

There are some serious problems here that have yet to be addressed. And that doesn’t even include the challenges of this weakened bank successfully navigating Brexit.

RBS is off 30% in the past five years and it’s of 46% in the past 12 months. This is a slow motion swan dive. Avoid.

Source: Investor Place

[behappyalways]

RBS biggest failure in Bank of England stress test
http://www.bbc.com/news/business-38135133