RBS Shares

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

qamwc1

Papers received yesterday. Decisions, decisions!

anna42hmr

well ive just got them, the postman out them through nextdoors letter box this morning by mistake, good job its today he did it as there away for a few weeks from tomorrow lol!

i am still undecided slightly, though i am leaning more to taking them up than not, especially as those the shareholders dont take will go to government in preferrence shares and the more they have the longer till the dividends get paid

sabretoothtigger

The share issue is underwritten by the government so they will buy any ordinary shares not bought by others.
Regardless of that outcome they will separately buy pref shares but the majority of the money will come from these ordinary shares which only give a normal dividend, or not in this case

The government holding ordinary shares wont stop dividends being paid. They are going to setup a holding company and may sell off their holding in that separately anyway

anna42hmr

sabretoothtigger wrote: »

The share issue is underwritten by the government so they will buy any ordinary shares not bought by others.
Regardless of that outcome they will separately buy pref shares but the majority of the money will come from these ordinary shares which only give a normal dividend, or not in this case

The government holding ordinary shares wont stop dividends being paid. They are going to setup a holding company and may sell off their holding in that separately anyway

thanks for clarifying that i appreciate it

anna42hmr

qamwc1 wrote: »

Papers received yesterday. Decisions, decisions!

have you made your mind up yet? its been a hard one hasnt it?

i have decided to take my options up. for a few reasons

1. it will water down the average price i have paid per share

2. 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.

3.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 from the open market, it may be worth a gamble

4. with interest rates low, doubt i would make much interest from the amount as no doubt interest rates on savings will be hit at some point

chopperharris

Im new to the shares game , bought 4000 at 90 p a few weeks ago and put in my isa ,I see it as a bargain long term , although other greedy sods see that price as a loss in the short term.

I havent recieved my papers on this rights issue , which is a pity , I want to buy more.Ironically I now need to close off an account to fund it , as the account is now boe interest rate based with rbs.

The problem now with these shares is they wont go anywhere price wise with a ri at 65.5p and until that dust settles. Day traders are in and out because they know this , they have fill or kills buys from 50p to 70p....which if holding large amounts makes them money every day.Theres good money to be made there for those traders with a large holding in that range.

I do feel sorry for those that seen a bottom before then , and the previous ri buyers....but if short flipping is your game then no I dont.

Trading and investment are imo totally different.I have banked with rbs for nearly 30 years , and are "investing" in them with a view to profit long term.Its still marked as a undervalued company , has substantial assets and a good loan to deposit ratio.....where is negative other than what every bank has been exposed to in the last year.

My opinion is if you dont need your money for the next 7-10 years , then buy as much as you can of these NOW.Especially so if you havent used your sns isa.

anna42hmr

chopperharris wrote: »

Im new to the shares game , bought 4000 at 90 p a few weeks ago and put in my isa ,I see it as a bargain long term , although other greedy sods see that price as a loss in the short term.
I havent recieved my papers on this rights issue , which is a pity , I want to buy more.Ironically I now need to close off an account to fund it , as the account is now boe interest rate based with rbs.

-.

when did you get the shares, as it is an offer of 18 new shares for every 13 held on 31st October, so if you or any one else bought after this date, i dont think you will be able to take part in the "open offer", if you bought before this date i should imagine the papers will be on the way soon

if you do want to take part make sure you can get the money quick as the cheques have to be sent back within a matter of weeks (if you want to vote at the general meeting they have to be in for 17th november, and if you dont want to vote but just partake in the open offer if its voted through, then you need to send the cheque so it reaches them by 25th november)

there is a telephone number for queeries if you want to ring them to see if they have or should be sending the papers - 0870 702 0109

jingle68

current share price 61.00, should i buy more now & ignore my pref share offer (65.50) ?

Will they go lower?

sabretoothtigger

Depends how much you will buy I guess as I think the open offer is free of dealing costs but still charges stamp duty?

I dont think theres any specific reason why rbs should fall further but the market is probably going to fall tomorrow and the day after but nobody knows that really. I dont think it'll reach a new low but if it does it'll be a big one maybe

50p is their previous midday low