Ireland’s economy is slowing. It’s property and construction sectors are weak. This is already baked into the price of Allied Irish Banks, plc. (ADR) [[AIB]] , $9.11 (10/20/08). So I did the Costanza thing and bought some. I know, it makes no sense, given the state of affairs on the Emerald Isle.
However, the diversified business portfolio and conservative risk management of this Irish-based bank are positives in this environment. They will survive and become stronger because they’re just plain lucky, no? (Plus don’t count out their legions of leprechuans who have stashed away pots of gold at the end of the rainbow).
So if you’re thinking of buying this stock, you have to ask yourself one question, “Do I feel lucky?” ….(Well, do ya, punk?)
Target: $23 (12 mos).
Disclaimer: Buying bank stocks at the center of the current financial crisis involves risk. If you buy AIB without any due diligence on your part, a leprechuan might jump out of a tree and waylay your unlucky ass.
If you enjoy the content at iBankCoin, please follow us on Twitter
