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Bank of Ireland (IRE) a steal?

Is Bank of Ireland a steal at current levels?

P/B of .08
P/E of 5.34

Can these guys and Allied Irish Banks (AIB) go any lower... yes there are debt concerns all over Ireland and this is a risky play.

  • Yes the beta is over 2
  • Yes they have droped almost 50% in the past 2 days
But are they a buy?

The currently are a 2.27 billion company and in the past were worth over 50 billion. They have been crushed and even if they are sold they are worth more than this current valuation. This reminds me of Bear Sterns, which just the building in New York was worth at least $10 per share when Jamie Dimon picked them up. Remember Citi dropping to $1.03 on March 6, 2010. Now they are up 400%

A little more about Bank of Ireland(NYSE:IRE)

Equity Tier 1= 5.8%
Core Tier 1= 9.3%
Tier 1= 10.2%
Tier 1 Capital= 13.4%

In terms of geographic breakdown Bank of Ireland has 30% of its opperations in the U.K. with only 50% in Ireland. Think a big player such as Banco Santander (STD) looks to steal IRE or AIB at such cheap valuations.

Never go with the rest of the crowd, as investors sell off Ireland and the risk look to snatch a steal.

Don't be a Pig!


Disclosure: None Yet
Stocks: IRE, AIBYY, SAN, C