Metro Bank - MTRO - Share Chat

Accounting issues appear all of a sudden, that is what “shocks” the market and you get mass selling. They can happen to any company, that is why it is always good to look out for, “honest, strong and able management”. Usually larger companies have better management than smaller companies, not always though. This is why there is always a negative market shock when the CEO, CFO or COO resigns all of a sudden, the market doesn’t know where the skeletons are.

Yeah of course, I just thought perhaps you noticed something before others with Kraft, or Metro when I read this comment

so just being inquisitive.

Basically buy stocks with as low P/E as you can (don’t buy stocks with a P/E above 40 unless you are certain the company can deliver amazing earnings growth), apply a large margin of safety in the purchase price, look for a strong moat against competitors, look for strong, able and honest management and look for several years of rising earnings per share.

The higher the P/E, the more the market will punish the stock if it doesn’t deliver on EPS growth. Remember P/E should equal the growth rate in earnings per share, this gives the PEG ratio.

25% down now, tanking as we speak. Something shady going on.

I have a feeling that this might have something to do with that -

Metro Bank Shares Plunge to Record Low as Regulators Circle - Bloomberg

(Bloomberg’s story from yesterday)

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It’s because of the new share offering, it’s going to dilute existing shareholder equity and the market doesn’t know what price the new share offering will be offered at. Would not touch with a barge pole.

Metro’s facing more scrutiny now, around it’s award from the RBS fund -

The company assured BCR the mistake would not affect its bid for a share of the funds, which were being paid for by Royal Bank of Scotland as a condition of its bailout in the financial crisis. However, less than a week after receiving the award, Metro announced it would cut its growth plans, issue £350m in new shares, and was being investigated by regulators over the accounting error.

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They should take the money off them and give it to Monzo :grin:

It’s not a good look awarding that money in the circumstances

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Top 10 shorts… as at 8 March 2019 :chart_with_downwards_trend::

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Metro Bank down 18% today!

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Just can’t see how Metro can compete with Monzo or Starling etc. The way people bank is changing, just natural evolution and besides I can’t stand the Metro colour scheme! :nauseated_face:

Rubbish results :sob:

Their loan to deposit ratio is 100% now. About £500 million in deposits has been withdrawn. Then there’s the £350m rights issue launching in Q2. A lot of uncertainty when you combine all of this together.

At least they still have that £120m they won from RBS Remedies Package, or at least for now.

My average price is about £8.15, let’s see what happens :cry:

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Do they? I thought RBS pulled the funding, although I might of imagined this

There are some people out there pushing for it to be clawed back or pulled, but nothing has happened to it yet.

Ah that’s annoying! Would of loved to see Monzo get the full whack!

Thanks for letting me know

I don’t think Monzo even applied for the first tranche. But if it was pulled then what does that mean for other winners? Could theirs also be pulled?

£5.30

Geez. A year ago 30 quid.

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I wouldn’t read too much into that, it’s quite natural in cases like these. When a high-profile stock (which, to be fair, I’m being generous in classifying Metro as) goes bear, it naturally attracts attention.

Short traders grab their surfboards try to ride the negative wave.

Long-term holders exit through fear (booooo)

Prospective scalpers put their gloves on and attempt to catch the falling knife.

Volatile stock indexes add Metro to their basket and gain exposure.

All sorts of things, really :slight_smile:

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