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Investment in the UK
Anyone here a bit savvy on stocks? This might be the wrong forum, but as there is such a diverse bunch, I thought I would try it...please move if needed! Thanks.
I am in a bit of a quandry as to the best way forward on this one...to be honest my head is telling me just to forget it and take what I get...but sometimes my head is not the best judge.
I have shitload of Lloydds Bank shares, that I bought when they were a "bargain" about 8 years ago - about 3 and a half quid, they went up to about 6 quid over time, but I didn't really look at them as they were paying a dividend compared to my buy price of 8%.
Sadly, they are now worth about 60 P on a good day. (and no divi!)
They have issued a new rights issue where every one share you currently hold entitles you to buy 1.34 "New Shares" at 37P
What do you think? Will the rights issue force the entire share price down to near 37P, or do you think it will climb?
Personally, I am steering towards cutting my losses, but other than not diluting your share holding, do you think their is any mileage in taking up the offer?
Or, as I am thinking at the minute, just letting the options go and get the difference in cash...I have already been "BURNED" or "FUCKING DEEP FRIED" might be a better description.
Any Lloydds shareholders out there with any advice...like when will they be worth 25 quid a share? in this century or not?
I was probably a complete prick for even pissing around with shares when I know bugger all about them, but they have up until now coughed up some decent dividends..
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I would buy more.
The government are currently lending Lloyds money at what? 0.5%?
Have a look at their current personal loans charges....about 13%? They are making money across the board on spreads like those.
Lets face it, your in for the long term whether you like it or not. Selling near the bottom is what the ordinary man on the street always does....and its invariably always the wrong decision.
Three years from now those shares you can get at 37p will be worth a lot more.
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i bought 10000 shares at 98p in May this year shortly before they announced another rights issue. I purchased another 8000 at 30+p (RI) although the share price dropped to 65p. It has since risen to 109p and although the current rights issue has dropped the SP to 58p i have already taken up my RI of another 27000 shares. The bank aims to raise £13.5 billion and should be in a better financial state as a result (eventually). No dividend payments until at least Jan 2012 but the share price should rise again in the next few months. Basically if you can afford to purchase the additional shares offered to you under the RI they will currently be worth 21p per share more than their buy value. Risk? Is it likely that the largest banking group in the UK will go under? Unlikely but of course possible.
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There's a book called "The Naked Trader" well worth a look.
Cheers
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Carry on gambling.
May as well put your money on a gee gee in this day in age.
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are they simply warrants (rights) ? or just new issues ?
regardless, it will dilute Shareholder ownership even more, so you are buying into a sinking ship
selling what you have is too late, you missed the boat. If the warrants are in the money, buy them and trade them, else stop your losses maybe ? you are fucked either way. How much money were you planning to add under their plan ?
