Fliujniligui

Allied Irish Bank: Diversified Earnings, Compelling Valuation

Wonder why the CEO is so berserk at denying capital raising needs. More and more we see on website that the loans quality is deteriorating and that this is imminent that the capital may need a massive increase. Some talk about the need to sell M&T Stake which is a crazy idea that I dislike, I prefer being diluted instead. BZWBK Stake is interesting too and should not be sold. CEO saying "We would rather die than raise capital" made me doubt that he is maybe too stubborn and that it may cost shareholders a high price if capital need is needed later. This guy should do as ING did, take the cash now, reassure everybody about the solidity of the bank (AIB is solid but doubt is weakening it) and all that without diluting actual shareholders.

At 7$ an ADR, this bank is a crazy value deal, that is why I feel compelling to clear the clouds with a capital raising diluting me 50% without any problems. Selling M&T or BZWBK won't dilute shareholder but they will hold a less fat and complete company.