TSB takeover #investments
This week TSB issued a statement: “TSB confirms that it has received a preliminary proposal from Sabadell which may or may not result in a formal offer for the entire share capital of the Company.” Banco de Sabadell SA has offered 340p in cash per share for TSB sending the share price up to 325p
TSB’s share price has hovered around 260p since it’s IPO last June and management plans haven’t excited the market very much. This news did make the week more interesting after 3 days of losses as dealers took profits following last week’s record for the FTSE 100.
I shall watching TSB very carefully now. I think it’s sad a British Bank that once had a great reputation goes to a foreign owner, but it’s hardly surprising.
On the back of the good news from TSB the rest of the market has been edging up too. RSA seems to be in the same position as TSB with little innovation driving performance. A merger between RSA and TSB could have worked. The bond market is a bit of a worry with interest rate rises predicted for the USA. I think that could subdue share prices in insurance, but could help the banks. I shall watch with interest, but RSA and TSB are both companies I could sell.
I don’t really want to buy in the AIM just yet, but I am watching Verona Pharma. I want to buy into a pharmaceutical so my portfolio will be more diverse. Immupharma also in the AIM is also a consideration.
Afren’s share price dropped by over 15% this morning. It’s been bouncing around a lot, but I think it could settle now, but will it drop further? One broker has given a target of 2p. It might be worth buying at 4p, the debt situation seems to be stable, for now…
Cable and Wireless
Before investing in any company it’s a good idea to do research. I research a few at a time and one I’m looking at is Cable and Wireless. It has it’s problems, but it’s a well known company with a lot of potential to make a comeback. I think we could see some innovation and they are in a sector that’s growing.
Graphene Nanochem and Solo Oil
Graphene Nanochem and Solo Oil are the shares I have with the most potential. Solo Oil will be a producer soon and Graphene Nanochem is looking for new customers and has some research projects going that could send the share price soaring. Both companies could be takeover targets in the future too. The AIM is always high risk for high reward, but adds a little excitement to investing.
Please remember, these are just my thoughts on investing. Don’t take it as advice, many pundits are predicting a stock market crash! I think some prices will crash, the ones that investors see as ‘safe havens’. Those are mostly the well known names. Some prices of well known companies look far too high. When they look over-priced, they probably are. I think TSB was under priced; but now? We will have to see, but I think TSB needs to be watched closely. TSB have promised IPO investors free shares after 12 months too. The other well known name I have is Tesco, again that needs close monitoring.
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GW Pharmaceuticals is up over 5% today. They are trying to produce drugs from cannabis and their price has gone from 100p to nearly 500 in a couple of years. Talk about getting high…