I have shares in the banks

sabretoothtigger

iziizi wrote: »

Sorry tigger, could you explain this in slightly more layman terms!? When will they issue 100% more new shares? Also what does share offer mean?

Sorry for highly noob-esk questions.

The [share] Offer is subject to shareholder approval and further details and the terms and conditions of the Offer will be set out in the prospectus which is expected to be published in late October 2008. The Offer is expected to close in November 2008.

http://www.investors.rbs.com/investor_relations/announcements/ReleaseDetail.cfm?ReleaseID=339926


They are issuing £15bn of shares at 65.5p so thats 23 billion new shares?:eek:
They have a market capital today of £14bn at 84.5p so that would mean they presently have 16.7bn shares on the market now. So end of nov the total shares will be about 40bn with a market capital of £29bn or 72.5p a share.
Not sure if its that simple, but thats how it looks

gozomark wrote: »

if the share price is 85p with rights, and the rights are priced at 65p, then the price will fall to 70-75p, all else being equal, once they go ex-rights

Is that like Ive worked out above?

gozomark

sabretoothtigger wrote: »

Is that like Ive worked out above?

yep, thats how its done.:T

iziizi

sabretoothtigger wrote: »

http://www.investors.rbs.com/investor_relations/announcements/ReleaseDetail.cfm?ReleaseID=339926


They are issuing £15bn of shares at 65.5p so thats 23 billion new shares?:eek:
They have a market capital today of £14bn at 84.5p so that would mean they presently have 16.7bn shares on the market now. So end of nov the total shares will be about 40bn with a market capital of £29bn or 72.5p a share.
Not sure if its that simple, but thats how it looks



Is that like Ive worked out above?

OK, i think i get it a little!

I bought 200 rbs shares this morning at 71p. Should i just get rid of them tomorrow morning, take the 20 quid and re-invest in november for the long hall? Or just not bother and wait it out?

sabretoothtigger

Dont know but if theres any certain money you can be sure others have already covered it. The ftse should rise tomorrow to reflect the usa markets,

Just_landed

DocProc wrote: »

Don't you mean Gordon Blair?

Tony was there first.:rotfl:

opinions4u

iziizi wrote: »

OK, i think i get it a little!

I bought 200 rbs shares this morning at 71p. Should i just get rid of them tomorrow morning, take the 20 quid and re-invest in november for the long hall? Or just not bother and wait it out?

The main problem with your strategy is that your dealing costs will be eating away at your profits. If it costs £10 to buy and £10 to sell, £20 is eaten away. From a risk perspective there are decent gains to be made, but equally hefty losses too!

Buy a little / gain a little / sell a little costs money that wipes out a proportion of the gain and actually makes the game hardly worth playing. And leaves you with the same risk factors for little reward short term.

It does, however, give you knowledge as to how to time larger share deals in future. I made about £800 on HBOS shares when they were between 490p and 580p by buying and selling at the peaks and troughs. I then held rather than realise my gain. Such is life.

[Deleted User]

happywarmgun wrote: »

I think these *are* extraordinary times.... you are of course right there are bubbles every decade (everyone on here will surely be old enough to remember the dot com bubble, the last asia bust, the property bust of the early 90s and the 87 'crash'.) - All very cyclical and always blindingly obvious with hindsight.

What is different here is that the bubble isn't tulips, or property, or high tec promises of jam tommorow that are vanishing - it is the banks themselves!

This is another bubble. But it IS also extraordinary.

Nope the bubble was property and it wasnt the biggest bubble, for the property bubble to be equivalent to the tech bubble or japans commercial property bubble you'd need to have seen the average house at 50 times average earnings.

During the great depression the banks made huge profits still. The difference now are the accounting rules make things seem worse then they are. The real effect on bank profits is between 1 and 10% on UK banks. Just another excuse for market mayhem.

sabretoothtigger

If anything Ive read the banks have been offered looser terms of accounting, maturity value rather then market value for mortgage debt to make their balance sheets look better.

The Fed allows this and now the ECB says its ok too. Hopefully we're no where near the Japanese mis valuation

These allow European banks the same powers as their US peers to reclassify loans and securities as hold to maturity assets, rather than trading book securities.

http://www.breakingviews.com/2008/10/21/Accounting%20standards.aspx?sg=breakingstories

domcastro

KorkyKat wrote: »

Wait until Tuesday.

What's happening Tuesday?

elizw

still no further news about HBOS and Lloyds - everyone seems to think it is a bad idea for Lloyds to take on HBOS - does anyone now think that this will not go through - in which case - what about us poor HBOS shareholders - have we lost all our money?