another rbs rights issue? - would you risk it??

anna42hmr

sabretoothtigger wrote: »

Discussion and interview with rbs here:

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

thanks for that link, i will take a look

anna42hmr

has any one received the papers yet as to how much they are offering specifically to you, ive not got mine yet and they seem to be leaving it late if the cut off is the end of this month

anna42hmr

oh well, my cheques are posted, may prove to be a mistake, but at least taking these options waters down the average price per share that i have bought over the years!

plus with the interest rates down i have a feeling my savings interest wont miss this amount they have asked me for (only just over £1000 has been asked from me as i dont hold many shares) plus if they end up halving the dividends when they are eventually paid, i will still get around the same amount as before, and this has doubled up my share holdings.

i am looking mid to long term any way so hopefully if i leave the money where it is for the next five years or more, i hope i wont loose, and break even at least, if not double the share price. at 65.5 p per share, and no dealing costs to buy new shares it may be worth a gamble

sabretoothtigger

No dealing costs means it might be worth putting a bit in as a gamble or to cost average it.
I think you should at least get your money back in 5 years, hopefully also be able to say you did better for not just leaving it in an interest account

RBS used to be such a powerful successful bank with their fingers on all sorts of profitable ventures. They were teamed with tesco banking, they setup direct line the first of its kind and many more excellent investment ventures.

It'd be a massive loss if just an inability to control risk on mortgages stopped that in future or even just the ability to collect money from their past sucess.
They dont need to do that much to do well just sort their books out and handle their debt.

On the plus side the new MD sounds the right bloke with a no nonsense approach

anna42hmr

another reason i have decided to take part is that it may be my last chance to get shares easily, as my shares have come to me via share save schemes and profit shaes, however as the insurance arm has been put on the market, i doubt we would have these options any more, so any further shares i want to perchase would be via brokers at a cost

plus if they sell off the insurance arm, then that would be a cash injection into the group which could improve finances.

gillsmills

Just received my booklet through post yesterday and I too am "chewing the cud" about going for it but as a medium to long term option say 8-12 year until I am able to take early retirement. I figure they have been good to me in the past with gains thru sharesaves and purchases so I may as well go for it. Will check with other holders next week and see what they think too.

FoxtonsRIP

napoleon wrote: »

They're having a laugh. What happened to the last £12 billion they raised in a rights issue a few months ago? and now they want even more. Hoho, they really are pulling our legs

They wasted 12 billion pounds only recently. How can anyone seriously consider giving tham a penny more money now? :eek:

anna42hmr

FoxtonsRIP wrote: »

They wasted 12 billion pounds only recently. How can anyone seriously consider giving tham a penny more money now? :eek:

several reasons, the personal ones for me have been mentioned above but other reasons to take into account

1. shares that arent taken up by the holders will be bought by the government and therefore until they are bought back will be a part nationalised company and many investors would rather not risk that

2. that common thought that the shares at the moment are undervalued and long term are likely to go up

3. fred goodwin has gone

4. i get the impression they have realised that they made a mistake in the price they bought abn amro from and are more likely to not make that mistake again

5. the economic climate has changed drastically over the last few months since they did that last issue

6. to dilute the average share price paid for shares, therefore meaning long term more likely to make some sort of profit/at least break even

7. wether we like it or not, 22.9billion new shares are being created, so shareholders may as well get in the act or the government will

8. when dividends re start, there there will be more shares that i own that will attract a divident

ad44downey

anna42hmr wrote: »

2. that common thought that the shares at the moment are undervalued and long term are likely to go up
t

Says who? The stockmarket obviously doesn't think so or the share price would be higher than it is now. Do you know something they don't?

ad44downey

anna42hmr wrote: »

5. the economic climate has changed drastically over the last few months since they did that last issue

Yes, exactly. It's got even worse!!