- This topic has 8 replies, 6 voices, and was last updated 10 years, 9 months ago by
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(Reuters) – Wilbur Ross, the U.S. billionaire who has made 65 percent profit on his 2011 investment in a struggling Bank of Ireland (BOI) (BKIR.I), said he is likely to bid for banks or financial assets in Spain over the next few months.This news is basically quite positive about the medium term outlook for Spain. Recovery will start with investors like Ross. You have to assume he is a smart guy with a smart team that know what they are doing. He wouldn’t invest if Spain was a basket case or this wasn’t the time to buy 😉
If you go long on Spanish banking assets you are implicitly going long on Spanish property.
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This article in the WSJ is also midly upbeat (or at least not downbeat 😉 )
European Commission: Spain Banking Program Remains on Track -
Certainly better than this today. Who to trust the EU or the IMF
http://elpais.com/elpais/2013/07/09/inenglish/1373382482_032153.html
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Exports up, tourist figures up, car companies scrambling to open new plants in Spain (just today Opel announce they are to build a new model in Aragon)….
I’m quite tempted to invest in a business in Spain myself now (I’ve actually expressed an interest in 2 this week). Worrying thing is the level of tax extraction. Maybe Gib is a better bet… -
Then there is this one
http://elpais.com/elpais/2013/07/10/inenglish/1373468879_596912.html
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@angie wrote:
My money’s on the IMF forecast 😉
Marcos, what sort of business interests you in Spain and if you did invest would you then make your long awaited move there, ie purchase a business and a property in Madrid or Valencia, did you visit Malaga recently as you said that was also interesting you? 🙄
Angie, I’m hardly going to let you (or more importantly anyone reading here) know what I’m looking into, am I? Last thing I need is competition bidding up the asking price. However I will state that one is a mainly terrestial business (although expanding into the web) that would need me to be present in Spain – the other is a mainly web based biz that can be run from anywhere. I’m not saying either is anywhere near definite yet, and a lot will depend on the asking price.
Incidentally I’ve recently become aware of the MAB (mercado alternativo bursatil). Always a risk with that type of investment (let’s face it all shares are, and these are small-caps companies). But it seems that a company on there, Gowex (a company I’ve noted on Twitter and in web articles), has increased share value by 157% this year!!! A lost opportunity… 🙁 From now on i’m going to pay attention to the likes of @juanst
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I wonder what percentage on their book value will Mr.Ross be paying for the properties that the banks have for sale?
Less than 50% for sure, probably closer to 25% which will allow him some room to either bulldoze them down and sell the land or sell the better properties. If a bank has a property that they are listing for sale at say 200k, how much would anyone offer – half ? Perhaps less, bearing in mind that they have a huge inventory of unproductive capital tied up in real estate. -
With the constant bailouts, those bank assets belong to ‘the people’ and yet they are being sold at incredible discounts to the wealthy – who profited from and caused this problem.
It is the perfect scam, designed to perpetuate misery. Why discounted properties are not being offered to people interested in homes or even vacation homes and not to investors and speculators is a mystery, unless the motive is to prevent the poor and middle classes from potential profits.
I am not a communist, but this is how radical political systems take root: Disgusting and immoral abuse.
The wealthy investor class better be prepared to pay expensive bribes to politicians to keep this scam going.
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