Ireland Bank, American Dep. Shares (IREBY)

[Huggy Bear]

Nice to see 52 week highs. However, IRE is trading at a premium again to BKIR.L

BKIR.L closed at .14 today. .14 x 40 x 1.3 = 7.28

7.28 is the intrinsic value of shares of IRE.

The premium over BKIR came back out of nowhere. No one has been able to explain this phenomenon as the market comprised of overall sentiment. I would actually prefer for IRE to be tracking BKIR closely, as we saw in the recent past. Historically, IRE valuations have been as high as 40% over BKIR and sustained.

As the British govt starts liquidating some of its position in Bank of Ireland it will be interesting to see how cautiously they do so - Will they be disciplined and have a focus on making a set profit margin, or will they dump en masse and let the market forces determine what profit the govt makes?

When BKIR can break and sustain above .15 we will gain some serious traction IMO. Until then, it is still profit protecting time.