Share Dealing Discussion Area

1121122124126127273

Comments

  • tsmiggy
    tsmiggy Posts: 127 Forumite
    edited 21 July 2010 at 5:58PM
    Well its a little clearer now,but i cannot help but feel shafted.I am not in a position to buy anything so that options gone.To be honest i do find this a total bind,so my gut feeling is take option 4 and hope for the best


    The saying as clear as mud springs to mind lol
  • turbobob
    turbobob Posts: 1,500 Forumite
    Sorry - the end result of 3 and 4 is the same - you sell your rights and you keep the shares you've currently got. If that is what you want to do it might be better to go with the third option, although I don't know for sure.
  • tsmiggy
    tsmiggy Posts: 127 Forumite
    Thankyou you have been very helpful,i do have a few days to digest it.Its one of those things that you really do not know what to do for the best.
  • Does anyone understand why today's share price is 246p whereas yesterday it was 65p. If consolidation is 30 to 1 then why is the price not 30 times 65p?
  • shadowdog
    shadowdog Posts: 46 Forumite
    First Post First Anniversary Combo Breaker
    Just received my rights issue.

    A.existing shares=694
    b.consolidated shares=23
    c.number of new shares allocated to me @£1.50 each=393
    d.amount owing=£589.5

    therefore value of shares prior to today was 694 x 0.65p = £451.1
    value of consolidated shares today = 23 x £2.46 = 56.58 a loss of £394.52.?
    Why should i buy extra shares?. Any advice please
  • turbobob
    turbobob Posts: 1,500 Forumite
    edited 21 July 2010 at 11:31PM
    nigelj wrote: »
    Does anyone understand why today's share price is 246p whereas yesterday it was 65p. If consolidation is 30 to 1 then why is the price not 30 times 65p?

    A lot of the value is in the rights you have (approximately 17 rights per new share). If you held shares prior to today, the rights will be worth more than your current shareholding.

    EDIT On further investigation it appears that the rights are separately traded under the epic code RSLN - they closed at 95p today.
  • david69_2
    david69_2 Posts: 580 Forumite
    so turbobob would you say that if you have the money to buy the shares its worth doing ?
    and when is the earliest i could sell them
  • tsmiggy
    tsmiggy Posts: 127 Forumite
    Thats a good question,and i will interested in the answer.Of course if you chose to do nothing,and they were sold on your behalf,that would depend on what you got for your shares......... not worked that one out yet lol.Thats assuming you are thinking of looking for a quick profit.
  • turbobob
    turbobob Posts: 1,500 Forumite
    david69 wrote: »
    so turbobob would you say that if you have the money to buy the shares its worth doing ?
    and when is the earliest i could sell them

    TBH, I don't really know and I don't personally have an investment in them. There's some discussion on the III site amongst shareholders with various opinions :) - http://www.iii.co.uk/investment/detail?code=cotn:RSL.L&display=discussion&it=le

    It is a large commitment as basically it will involve doubling your investment to take up the full rights. Its investors are mainly institutions who have always been aware they could be tapped to fund takeovers. Its what the company does - it's mainly a vehicle for taking over and consolidating insurance companies, and hoping to profit from this.

    FWIW I think since it floated Resolution has not really rewarded investors as its share price has relentlessly trended down on the whole.. Historic chart adjusted for the consolidated shares below:

    2iax184.png
  • tsmiggy
    tsmiggy Posts: 127 Forumite
    Why cant things be straightforward lol.

    Right if i opted for .

    Take in some of your rights through cashless take up.

    What could be the outcome,and where would i then be lol.
Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards