(BSCT)
www.bankofscotland.co.uk/
I would like to propose we buy £1000 worth of Bank of Scotland.
The banking sector is one of the very few that are tipped to do anything at
all during 2001. Bank shares normally benefit from lower interest rates
and with the recent reduction in US interest rates the move in the UK and
Europe is likely to be downwards to head off any threats of recession/slow
Down.
Bank of Scotland is involved in the three-way tussle with Abbey National
and Lloyds TSB. Whatever the result it is likely to be one of the better
performers in the sector. If it ties up with Abbey the earnings boost potential
is considered to be significant and if it does not it would seem ripe for
merger/takeover with another suitable suitor.
The CEO Peter Burt is well liked in the City and has a lot of supporters including HSBC!
Recently tipped by Mail on Sunday as one to have in the portfolio it would also bring some
much needed defensive/safe stocks to our portfolio to avoid our cash disappearing completely.
It also increases the spread of sectors within our portfolio.
