Daithi

Luck of the Allied Irish: AIB's a Dividend Winner

AIB owned and own a US subsidiary which like all US banks is and was exposed to the sub prime market and the over leveraging craze in the US (and elsewhere by the way).

Their share price is now 5% of what it was at its peak in Feb '07 having recoved from about 2% in the past 6 weeks. It was trading at circa euro 20 on the ISEQ when this article was scribed it is now trading at euro 1.28.

The value models espoused in this article possibly may work some of the time on a steady state business that is churning away business as usual in fair equity markets but clearly do not work in an industry when companies no longer trust each other's balance sheets, when there is a significant change in the macro economic picture and markets that these companies operate in and when the basic underlying assumptions on a stock (i.e. no apparent exposure to US sub prime market and hence credit crunch) are clearly incorrect.