NEW YORK - Warren Buffett owns two financial institutions in Ireland but the legendary investor known as the "Oracle of Omaha" has never said which two. He has said that he made a mistake in buying them. Shares of Allied Irish Banks have rallied 40% in the last day while Bank of Ireland has lost 5% in the same period. As Buffet would say "be fearful when others are greedy." Despite the stock being down 99% since 2008 it is still not a time when one should be greedy.
AIB has seen several 40% rallies in the last year, in December 2009 when the stock rallied from $3.17 to $5.00 or 57% in 2 days. In April 2010, the stock went from $3.20 to $4.49 or 40% in two days. In June 2010 the stock rallied from $2.17 to $2.94. Unless you are lucky enough to time the run, then their is little value in Allied Irish Bank.
Investors often rally the stock around a news point, such as AIB transferring loans to NAMA (National Asset Management Agency). A sort of buy the news mentality. The loan transfers are neither positive nor negative. They are widely known and has little effect on AIB's intrinsic value. Its stock value may wildly swing.
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