Metro Bank has been a comedy and a tragedy of errors in recent months, the Fawlty Towers of the banking sector. Even now one feels that a revelation of losses or mishaps could be unveiled at any time. The story for the bulls up to now has been that the company could be taken private. But somehow given the state of the company, this concept does not really fit – especially in terms of what would be different for the group as a non listed entity. Far better is talk of Lloyds Banking (LLOY) being a suitor, particularly given the way that the impetus on the larger group to do something constructive has been pressing for quite some time.
Therefore, it may be no accident that after weeks of the stock of Metro dithering either side of 200p we finally have a major trendline break at 215p. An end of day close above this level today could be the sign that rumour is about to become fact. Even if this is not the case, a run up for the shares towards towards September’s 300p may be on the cards. The only proviso is to keep those guaranteed stop losses in place just in case this is another of the stock market’s periodic “spoofs.”