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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Asymmetric who wrote (31505)	8/25/2008 12:15:23 PM
From: Paul Senior	Read Replies (4) \| Respond to of 78748

Almost all of the financials I own or watch are down today. Which enabled me to get a fill on a small entry amount of Irish bank, AIB. As mentioned here, some analysts are predicting large AIB loan defaults in '09 as Irish economy slows and housing values there remain down or continue to decline. That's possibly already reflected in AIB's stock price. Stock is at about a five year low. Dividend yield - as of now - in future who knows? - looks like $2.54/24.20 = about 10%. Latest (Aug. 6) div. was an increase from corresponding prior year's dividend. Company has raised dividends every year since 1998 (except it was kept constant 1999-2000). Looking couple-three years out, it seems to me people are still going to want the services banks provide, and AIB is positioned okay (it being part of a duopoly) for the Irish market (with ancillary business in Poland and USA). P/bk is now .77. (Has averaged over 2.0 every year in past ten.) Buying the stock now, I would be expecting a reversion-to-mean by 2011. Meanwhile, dividend (if it holds) is nice. finance.yahoo.com