Investors bounce back from B&B with some insightful trading

Angus Rigby, Chief Executive Officer, TD Waterhouse comments: "TD Waterhouse customers will have had mixed feelings to the news that Bradford & Bingley (B&B) is to have its mortgage and loans book nationalised and the bank's savings business and branches transferred to the Banco Santander group (Santander).

"Up to Friday last week, trading in B&B by TD Waterhouse customers had been mixed as the share price fell to an all time low of 20p and the bank's future as the last independent former building society was thrown into doubt. B&B shares were finally suspended on Monday, leaving thousands of shareholders wondering what will happen next.

"When Northern Rock was nationalised in February of this year the HM Treasury appointed an independent valuer, BDO Stoy Hayward, to value the bank and assess what compensation would be due to those people holding Northern Rock shares immediately prior to the bank's transfer into public ownership. It is expected that the Treasury will do the same for B&B, although this has yet to be confirmed.

"Although the demise of B&B is a sad end to over 150 years of banking heritage in the UK, it has not dissuaded our customers from continuing to seek opportunities across UK and international markets. The admission of EU and US stocks into our top ten trades table in recent weeks indicates that customers are continuing to take advantage of TD Waterhouse's access to international trading services, with US stock fast becoming a regular fixture following AIG's entry last week and Lehman Brothers' appearance two weeks ago.

"This week, it is the turn of US mortgage lender Freddie Mac (Federal Home Loan Mtg) who feature in our top ten sells after the stock experienced huge percentage swings on Monday. Careful observers of this market trend had the potential to make great gains if they had timed their sells correctly.

"Outside the banking sector, Tanfield Group, the industrial ‘cherry picker' and electric vehicle manufacturer makes an appearance as a top five sell this week. TD Waterhouse customers were quick take advantage after the company results on Tuesday showed a 91% rise in profits, causing the shares to rise 46% on the day.

"Tanfield's previous appearance in our tables was as a top five buy back in July of this year after the company issued a profit warning citing production issues and a drop in global demand for its products, and resulting in the share price to fall 83% in a single day.

"At the time, this was another company priced to go bust but their appearance in this week's top ten sells proves that despite the risks involved, there are still some opportunities to be made through insightful trading."