ROYAL BANK ADS (RBS)

[txstockhound]

Suckers! As we say in Texas. MRBS (Em, Are Bu** Sh**).

First they RBS only had enough equity to settle 60% of the claims against them (costing them something like $800 million). For the rest they intended to sell additional stock. Which they canceled because their stock price was too low.

Second, sure they have a lot of cash around that could go to dividends. But it won’t because it’s all going to the partial settlement.

Third, they got in trouble in 2008 because they had to raise emergency cash. Look for them to end up back in trouble again because well, they could only settle 60% of their lawsuit, they need cash to operate and they have negative earnings, they need to settle the remainder of their lawsuit. So, this is an RBS (Ridiculous Stock Buy).

Fourth, They are projecting NEGATIVE 70% EPS growth. Which would be bad if you believed the $0.1 EPS reporting above. My broker is telling me the actual EPS is (NEGATIVE) -$0.02 so if you bought this stock as a dividend target you are indeed bought yourself an RBS (Rock bottom Sh**ter).

RBS as we say in Texas (Real Bu** Sh**).