Annual Cash Dividends Per Share

Question: Do you think I will ever get my money back?

Do you think I will ever get my money back?
I have about 5300 shares of AIB purchased at $8.59. Right now it is $7.62. I am down about 11%.

What do you think about AIB- Allied Irish Banks.

Should I sell or hold?

It seems that the fundamentals are right, it is just the market is being irrational!
Thanks

EPS excluding extraordinary items (TTM) -2.21
EPS Normalized (MRFY) 2.30
Rev per share (TTM) 17.66
BV per share (MRQ) 39.36
Tangible BV per share (MRQ) 36.81
Cash per share (MRQ) 7.10
Cash flow per share (TTM) -2.76
Indicated Annual Dividend (US) –

Answer: I don’t know if it is a good stock or not. However, why hold onto a stock that you aren’t sure about, when there are so many others out there that are doing well and have better fundamentals? Many people get attached to a stock and won’t sell – it is finance psychology – they hold on even when they lose money because they hope to get back to even. As you indicated, it has negative earnings per share. Why hold on and hope you’ll get back to even? Why not sell, take the loss, and buy something you could make a real profit on?

I won’t tell you to buy, sell, or hold, but I do think you should consider why do you want to hold onto this and hope to get back to even? Is the company sound? What are the projected EPS? What is the target price? Could you do better taking the tax loss and buying some other stock that could do a lot better? Don’t hang on to a company just because you lost money and can’t bear to sell it.

Good luck.