How To Buy Irish Banks On Capital Infusion (IRE, AIB) By Gary Cassady Benzinga Staff Writer February 07, 2011 9:29 AMSymbols: AIB, IRE Posted in: Long Ideas, Politics, Short Ideas, Emerging Market ETFs, Small Cap, Trading Ideas, Economics Share 0diggsdigg Email ArticlePrint Article In the midst of Ireland's attempts to stabilize after its first recession since the 1980s, several financials received a boost over this past weekend in response to rumors of a capital injection for the Bank of Ireland (NYSE: IRE). The Bank of Ireland climbed over 3% in pre-market trading, while Allied Irish Banks (NYSE: AIB) was up over 6% on the reports. Ireland experienced the worst recession in any developed country since the Great Depression. Economic uncertainty has been prevalent throughout the Irish economy as many foreign investors have backed out of the region. Ireland accepted an 89 billion euro bailout package from other European nations in November of last year. Recently however, Labour Leader Eamon Gilmore calls for a renegotiation of the bailout deal, saying it is crippling the economy and preventing the economy from making a full recovery, according to the Irish Times. Brian Devine from NCB Stockbrokers claims that Ireland is actually doing particularly well, especially in the export sector. Gross National Product (GNP) was up the last two quarters of 2010 and it was driven by net exports, according to a CNBC interview. Devine says exports has already beaten its peak from 2007. Perhaps a recovery is around the corner, and with the impending Irish elections, perhaps another economic jumpstart will occur for the country. The Bank of Ireland and Allied Irish banks are up over the weekend, and perhaps it is indicative of longer-term stabilization. . http://www.benzinga.com/trading-ideas/long-ideas/...aib#ixzz1DHsS94fW |
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