Random punt: RBS in share competition

El1teTrader is running a 2015 Share Competition, so I thought it would be fun to publicise it and make my own entry.

For the Nicky Fraser Share Competition last year I chose LMI (Lonmin). What an atrocious choice that turned out to be!

Since putting together a thesis that looks good on paper and actually works out in practise doesn’t seem to be strong suit,  I’ve decided to abandon all that high-powered “analysis” and gone down the route of: What would JarJar Binks do?

My choice is: RBS (Royal Bank of Scotland). Why? Well, no fancy logic here. The share has excellent momentum on a 6m basis, and its on a PBV of 0.45. Its ROE is appalling, at -10%. So the theory here is that it’s a recovery share. ROE can only get better (in theory), and the  shares are cheap. I’m using  momentum is acting as a confirmation signal of its ongoing recovery.

About mcturra2000

Computer programmer living in Scotland.
This entry was posted in Uncategorized. Bookmark the permalink.

1 Response to Random punt: RBS in share competition

  1. Pingback: December 2014 | Mark Carter's blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s