value and opportunity

Warning: This is not investment advice. The author recently had a very disappointing track record so you might want to stay away as far as possible from this stock. DO YOUR OWN research.

Some three and a half year ago I briefly looked at Metro Bank, then the much hyped “Apple of Banking” and I didn’t like it that much. My summary back then was as follows:

Fundamentally, I do think that at the current share prIce the stock is already very “richly” valued as I don’t see a sustainable business model to earn the required returns on equity in the long run.I see a large risk that Metro Bank is rather a “one-trick pony” which worked well once but most likely not a second time.

At some point in time in the future this could even turn out to be an interesting short opportunity when growth is slowing and defaults start catching up.

In the meantime a couple of things happened:

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