RBS Shares

anna42hmr

mrposhman wrote: »

I bought at 60p per share so I did quite well, though I feel really sorry for those who bought at the last rights issue as I'm not sure it will be any time soon that you will see a return.

beleive me my decision to buy them at £2 (and more earlier on over the last couple years) seems to not be such a good value now, but shares are always a gamble, besides thankfully the origional shares were bought at a discount from the price at the time via the sharesave scheme, and another batch were from profit share so even if long term they drop 30% of the value that i bought them at, i would have still got the same as i would have done had i took it in my paycheque. looking long term i hope that they recover, i cant sell some of them for a couple years anyway without being liable to income tax on the profit share ones any way so i knew when i had them it was for at least 5 years.

mrposhman

anna42hmr wrote: »

beleive me my decision to buy them at £2 (and more earlier on over the last couple years) seems to not be such a good value now, but shares are always a gamble, besides thankfully the origional shares were bought at a discount from the price at the time via the sharesave scheme, and another batch were from profit share so even if long term they drop 30% of the value that i bought them at, i would have still got the same as i would have done had i took it in my paycheque. looking long term i hope that they recover, i cant sell some of them for a couple years anyway without being liable to income tax on the profit share ones any way so i knew when i had them it was for at least 5 years.

if you are in it for 5 years you probably have a decent chance of getting somewhere back to those price levels and possibly make profit on them.

anna42hmr

mrposhman wrote: »

if you are in it for 5 years you probably have a decent chance of getting somewhere back to those price levels and possibly make profit on them.

thanks i hope so, the profit share ones, theres about another 4.5 years till i can sell them without tax and ni implications

i am still considering wether the new issue of 65.5p is worth while doing, which is why i am monitering the share price on a daily basis between now and the forms coming out to make my mind, also depends how much they are asking me for

sabretoothtigger

I think the only reasons not to buy would be if you think they will suffer even more in future to wipe the 15 billion out or maybe you dont have the money spare now.

I wouldnt put any big amount of capital in but at 65p you shouldnt have to, as was pointed out above the price doesnt relate to their asset value at all just fear of their unknown debts - 10c in the dollar sub prime, etc

chopperharris

sabretoothtigger wrote: »

Not five years, the preference shares are a five year term but can be repaid early then you would get dividends on all the other shares

Selling this for solid stocks would be good except they havent halved in price so cant double back, I'd rather move the money sideways to standard chartered who have dropped 60% but have more money on deposit then lent out, increased their profits 30% this year over last, increased their dividends and other fine fundamentals.
Also browns plan was formulated by standard chartered

The only thing missing from this with regard to rbs is assets , they are about to sell off the insurance arm for example at 6bl sterling.Add to this another ri then around half of the 40b thats been banded about is already easilly covered.I forsee fund managers buying this long.

Any divis will no doubt be based on length of holding on their return , and those with ri ones before the others.This wil be the best bank on funds in the long term , both growth and income , for early adopters....ie now.

The 100 bl loan v deposit isnt all mortgage loans for the most part , so feasibly safer than a mortgge lending based bank.In this loan you have biz , pers , and the like.

The only thing missing from this is the name buffet , either his personal investment or the bh fund.But then again he is known to milk a dying cow.

sabretoothtigger

Seems the market agrees 65p is stupidly cheap, its up quite alot today

[SIZE=+1]Standard Life lines up for bank share issues[/SIZE] [SIZE=-1]LONDON, Oct 20 (Reuters) - Standard Life Investments, one of the largest investors in Royal Bank of Scotland (LSE: RBS.L - news) and HBOS (LSE: HBOS.L - news) , said on Monday it is likely to increase its stake in both banks as part of a UK government recapitalisation plan. [/SIZE]
[SIZE=-1]Investment director Euan Stirling said: 'It's looking more likely that we will and I say that because of the scale and the extent of the support package that was put in place over the last two weeks.' [/SIZE][SIZE=-1]Under a rescue plan unveiled last week, RBS will boost its capital by 20 billion pounds ($34.96 billion), with the UK government taking 5 billion pounds in preference shares and underwriting a share issue of a further 15 billion pounds. [/SIZE][SIZE=-1]The government will also provide up to 17 billion pounds to Lloyds and HBOS, underwriting share issues worth 13 billion pounds and buying preference shares worth a further 4 billion. [/SIZE][SIZE=-1]Stirling told BBC Radio 4 that last week's announcement on 'the scale of equity raising was surprising to us and to most other investors'. [/SIZE][SIZE=-1]He added: 'We're still trying to assess what the future looks like as a co-investor with government ... but the valuation case is becoming pretty compelling, most of the domestic banks (are) trading at half of their book value.' [/SIZE][SIZE=-1]Commenting on Lloyds' proposed takeover of HBOS, he said: 'From an HBOS perspective, you would need a huge appetite for risk to want to see it trading independently again, but I also think that Lloyds has made a very good case for the value that accrues to it from the deal. [/SIZE][SIZE=-1]'... ticks many of the boxes that you would look for as a shareholder or as a customer.' [/SIZE][SIZE=-1]Standard Life Investments is ranked as the second-largest shareholder in RBS with a 3.18 percent stake and the fourth-largest shareholder in HBOS with a 3.47 percent stake, according to data from Thomson Reuters [/SIZE]

http://uk.biz.yahoo.com/20102008/323/standard-life-lines-bank-share-issues.html

calash

Is there anything you can do if you have lost alot of money - or is the answer just keep them and see what happens

sabretoothtigger

You havent lost or gained any money till you sell them, they didnt issue a dividend this year and probably wont for a while thats the loss you have to account for so far.
All you can do now is make sure you dont have to sell in the next 4 years, also some would buy lots of shares at 65p to lower their average cost and bring forward the time & price they could sell at a profit but you would have to buy alot more then you presently hold to pull that off

500 shares held at £2 cost

Buy 2500 shares at 65p cost (£1625)

Average cost becomes 87.5p'


If you are holding 5 years anyway you dont need to increase your risk/profit/loss/timescale like this, as obviously you are making an even bigger bet the price wont go down further

anna42hmr

looking at yahoo finance, the shares today closed at 84.50 p

anna42hmr

theyve dropped a bit today, closed at 79.30