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

gillsmills

Look just buy them! if you dont Big Gordy will!:eek:

ad44downey

anna42hmr wrote: »

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

This is nonsense economics. e.g. If you'd tried 'averaging-down' with bank shares in the last year or so you have thrown virtually all your money away! And precisely all of it in the case of Northern Rock or Bradford and Bingley.

ad44downey

anna42hmr wrote: »

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

??? ?????:eek: :eek: :eek:

There's no logic in that statement whatsoever. It's like saying Flash Harry is selling a 2nd hand motor. I better buy it because if I don't some other mug will buy it instead!!

ad44downey

anna42hmr wrote: »

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

If . And even it is when, you have no idea what measly amount they will pay. If you want to earn a good dividend then there's plenty of shares in the FT-SE 100 that are presently pay high dividends unlike RBS which pays none. So buy them instead if you want dividends.

sabretoothtigger

Bank shares are probably the 'cheapest' way to get high yield at the moment, the catch being you have to believe they will actually do this any time soon.

Lloyds have said they will issue 'free' shares to reflect the 2008 year end, even if preferential shares arent paid back

Obviously its a gamble to invest in these banks but theres a potential reward also, so its down to the individual to match their money to the risk. I agree it'd be wrong to invest anything substantial or essential in something so risky

You wouldn't intentionally put mortgage endowment or pension funds into this really, ironically many people hold tracker funds and will indirectly invest in all these shares via the FTSE100. Also insurance companies will invest in banks, etc

Many peoples investments will be partially affected by the performance of these shares whether they like it or not


The big question to me is how much will be written down further, if they have accounted for everything already its good buy but if they have only realised half their losses so far it would be awful.

One thing about having the government as a share holder is that they wont or cant dump their shares like the funds have done. If they own the majority of the shares, that is a fairly solid base for the price to work off.

I wont say it will rise but if the majority of shares are held long term and not available for sale at any price (or short selling/loan even), it does limit the downside to a certain extent