August 25, 2010 | In: Financial

Stay Clear from AIB

AIB is the stock symbol of Allied Irish Bank. Ireland credit rating was cut yesterday due to its weak economy, this only can only mean one thing, that the cost of borrowing will be higher. With a higher cost of borrowing, Irish banks will suffer and the government will find it harder to support them, in case they needed to be supported.

AIB does need government help right now, it has been losing money for a while now, and its latest numbers are very, very bad.

I know I have recommended the stock as early as yesterday, but things have changed after this report. I was going to buy about a thousand shares of this stock myself yesterday (just for fun). The stock has closed at 2.08 on Tuesday, and I expect the stock to close well below the $2 level today (the stock is trading $1.97 in pre-market).

I wouldn’t recommend the stock at all at the moment, regardless of the price.

2 Responses to Stay Clear from AIB


AIB, the Next AIG? « Fadi El-Eter

October 22nd, 2010 at 4:35 pm

[…] I don’t know why this stock in particular interests me. I have warned against buying it a couple of times, and it dropped almost 50% since the previous warning. Now at the current pricing of […]


Is IRE An Attractive Investment? « Fadi El-Eter

January 4th, 2011 at 12:19 am

[…] we should think of it as a loser, even if it’s an Irish bank stock. Ever since AIB started dropping below the $2 level back in August for known reasons, the market confidence in the Irish banking sector quickly deteriorated, and […]

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