Section Items

The comments on this page are some of the thoughts that I had when considering this company and not a recommendation to take an action or to refrain from taking an action.

As you know we have no information about your circumstances, understanding of your investment goals or the level of risk that is acceptable to you. So it would be completely unreasonable to read these commentaries as recommendations.
Is This Just Pump And Dump?
I may or may not own the shares which have commentaries on this site.

Commentaries tend to be created when I look at a share and decide if it is one that I want to buy either now or when I next have an unallocated pot.
As companies often report numbers in slightly different ways there are a number of entries to cover this and as these are rough notes there will usually be empty items.

The debt columns are shown as positive values if there is any debt, all other negative values are shown within parenthesis and without a sign.

Commentary On Metro Bank plc

Title: Metro Bank – Are RBS Or Someone Else About To Buy Them?
Company: MTRO - Metro Bank plc
Share Price Then: 497p
Author: Ian Smith
Date: Tue 14 May 2019
Comments: Metro Bank’s problems are well known and there are now suggestions that the expected rights issue could be in the £500-£600 million range which is around the current market capitalisation.

However Metro Bank are reporting a lot of institutional support for a £350 million share issue and not talking about a larger fund raising.

Over the weekend there were rumours which caused customers to have concerns about their money and deposit boxes. Although the rumours were unfounded there have been headlines about another Northern Rock which could trigger more customers to move funds over the next few weeks.

Given these issues and RBS’s status as partially indirectly state controlled bank is a sale to RBS on the cards or under discussion as a last resort?

Clearly that is not what Metro Bank wants, not what the Government wants and probably not what the shareholders want.

The trouble is that it might be that investors are thinking no more money without management changes and the management doesn’t want to change.

If the rights issue is announced this week which is reported as being fully underwritten then business as normal can resume.

Or can it, has Metro Bank lost its credibility as a bank?

Under these circumstances the FCA/PRA etc may decide that words in ears suggesting that this is the way to go to avoid a failure, it does seem unlikely and is it even a possibility?

If you are trading Metro shares over the short term then this probably isn't an issue, but if you buy now or after the share issue with the intent of holding for a while it may be. If the buzz behind the bank has gone it could easily remain a similar size for a while and just gradually fizzle out.
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Read Count: 58

Commentary History