The voltility in the financial services sector will be great for stock buying, says TD Waterhouse.
Chief executive Angus Rigby says the recent woes seen by Bradford & Bingley will be positive news for TD Waterhouse’s customers.
He says: “Bradford & Bingley kicked off the reporting season for the banking sector with a mighty bang on Wednesday with its full year results. The company saw 23 per cent sliced off its share price after CEO Steven Crawshaw said bad loans had more than tripled to 22.5 million pounds in 2007 and alluded to further writedowns.”
He says in an already uncertain climate, investors and analysts have been rocked by news of its subprime exposure and even more bad news is looming.
Rigby says: “Despite these reports and talk of gloomy housing predictions, which could dent mortgage sales, our customers looked to profit from Bradford & Bingley’s woes and the stock equated to 23 per cent of all retail investor buys this week. The majority of these trades were made yesterday when the stock plummeted to an all-time low.”