one taste

Allied Irish Banks: With 9% Dividend, This Bank Could Thrive

Another reason I had confidence in Wachovia was that the Dodge & Cox folks, local to the high housing prices and the large loan book there, had WB as its largest bank holding. They were aligned with the view that current data showed trouble loans were at a level that was manageable. Until they weren't, of course. Hey, I'm talking myself out of AIB!

Anyway best of luck with your investments,

One taste

Allied Irish Banks: With 9% Dividend, This Bank Could Thrive

Thanks David for a very nice write up.

I'm considering AIB here and you gave me a great head start on my research. I have to admit alot of the positives of AIB remind me of Wachovia when I bought it "really cheap!" at $42, with great management, conservative loan practices, solid dividend easily covered by earnings, etc., etc. I sold when it bounced back up to $33 -- even though the questions then were "how much lower could it go?" Today at $16.

The overheated home market, exposure to construction loans and the leveraged nature of banks make me very cautious approaching AIB, even at the "cheap" $24.