Will you be buying shares in Lloyds TSB?

sabretoothtigger

Surely you need to know the record date in order to be sure of being entitled or does open offer mean you can buy back as many as you like later

Decadent_Fool

mrposhman, have you had notification of your entitlement yet? I had mine on the 20th and 24th

mrposhman

Decadent Fool - No I haven't received my entitlement yet. What broker do you use? I've heard that some brokers have sent them out stating using 0.43 as the entitlement ratio, but have since sent out a revision stating that this was wrong and all they could say is there will be a corporate action. I'm not too fussed about receiving my entitlement yet, as I only really want to see it once I've heard it from LBG to be honest.

sabretoothtigger - I'd love to know the record date but it still hasn't been released. I'm hoping full details will be published this week, possibly with a completion date just after the scrip issue indicating that the new shares won't be part of the scrip issue. I seriously doubt LBG would do this to be honest. Why provide even more shares to the market when you don't need to?

I think the entitlement is likely to be around 0.64 / 1 so I can make an assessment based on this but whilst the SP continues to rise it would be silly to sell just now.

An open offer means that you are guaranteed your entitlement, say for example you have 1000 shares, and the entitlement is 0.64, then you are guaranteed to get 640 shares i you apply for them. You are allowed to apply for as many as you want but you are only guaranteed 640. So you could apply for say another 1000 but any remaining shares will be split pro-rata based on how many applications have been made for any remaining shares.

Say there were 1m shares not taken up, then this would be split amongst every investor who has requested more than their entitlement. For LBG whilst the SP is this high, its far better than a RI and why imo they went down this route, as at current prices I'm practically certain that there will be quite a high uptake and the remaining shares will be taken up by PI's and institutions rather than HMG. I reckon HMG will only have been allowed to take up their 43% and then sweep up any others as underwriters that haven't been taken up through the open offer.

sabretoothtigger

The insurance scheme must be done by end of the month I think so they must have some sort of ability to promise payment by then afaik just like barclays being pushed to sell assets in principal by month end.
Barclays deadline is tonight, its high noon for varley

Both will issue shares but scrip will not dilute or devalue but open offer will.

However when so much of the company price is speculative it seems they have acted in shareholders interest by avoiding government ownership by majority and so effecting a positive feedback in the price?
They issued a bond recently also

malik999

ozzage wrote: »

Just hit 75.5p How long will this go on...??

I was wondering that about these type of posts.

I do find it odd people are talking about selling/buying in again. IMO you buy these financials and leave them. They were/are a risk so people bought low volumes I find i hard to believe anyone here bought recently did so in extreme high volumes and is shorting. Although the percentage movement is high they are moving just a few pence. Those who have already bought these types of shares should simply be forgetting about them for a few years.

sabretoothtigger

Most money and maybe the only money will be made trading them. If they pay no dividend and maybe in the end return no capital then just holding would be a recipe for certain and absolute failure.

Why should be the only bet be the most extreme, nothing wrong with taking 10% gains imo especially if you can do it repeatedly

mrposhman

sabretoothtigger wrote: »

The insurance scheme must be done by end of the month I think so they must have some sort of ability to promise payment by then afaik just like barclays being pushed to sell assets in principal by month end.
Barclays deadline is tonight, its high noon for varley

Both will issue shares but scrip will not dilute or devalue but open offer will.

However when so much of the company price is speculative it seems they have acted in shareholders interest by avoiding government ownership by majority and so effecting a positive feedback in the price?
They issued a bond recently also

The insurance scheme is being paid through the issuance of the new 'B' shares to the government. It just so happened that the open offer was made in the same statement to pay off the current pref shares. I still think the prospectus will come in this week and will complete after the scrip divi has been "paid" as if its done before they will issue more shares through the scrip due to more shares being owned in the company.

I think its been taken positively by a lot of PI's and institutions and some will apply for more than their guaranteed allocation and therefore I think LBG will be keeping HMG below 50% out of ordinary equity.

The next move then for daniels is to slowly buy back the 'B' shares instead of paying dividends to ensure that less ordinary shares are flooded into the market when the price either stabilises above £1.15 or hits £1.50 as stated as the conversion time for the 'B' shares.

ozzage

malik999 wrote: »

I was wondering that about these type of posts.

I do find it odd people are talking about selling/buying in again. IMO you buy these financials and leave them. They were/are a risk so people bought low volumes I find i hard to believe anyone here bought recently did so in extreme high volumes and is shorting. Although the percentage movement is high they are moving just a few pence. Those who have already bought these types of shares should simply be forgetting about them for a few years.

I agree with everything that you wrote, and I fit squarely into your "low volumes because of the risk" brigade. I also plan to hold them now for years.

However there's no harm in being happy when a gamble looks like it might pay off! We're not there yet though...

Decadent_Fool

I actually found out through my stocks and shares isa broker, LloydsTSB! I'd hope they're right but who knows! My entitlement is .4347 to 1. My most recent message:

Security: Lloyds Banking Group Plc Ord Shs 25p
Account Type: Stocks and Shares ISA
Holdings: 10,000
Action Type: Open Offer (Entitlement)
Action Date: 17/03/2009
Entitlement: 4,347
Terms: OPEN OFFER: with reference to our message of the 18 March 2009, further details and the terms and conditions of the ordinary share offer will be set out in the circular and prospectus, as applicable, the availability of which will be communicated to Shareholders in due course.
Please keep this notice with your Lloyds TSB Share Dealing documents for future reference.
If you have any questions about your account or using this service, send us a secure message or call Customer Services on 0845 60 60 560
Yours sincerely
Brian Spickett
Head of Operations, Investment Services
Lloyds TSB Share Dealing
PO Box 28518, Finance House
Orchard Brae, Edinburgh
EH4 1WW

Decadent_Fool

Oh, and with Dunfermline going 'Pete Tong' and such a good week for banking last week, anyone else expect some serious profit taking today?