Will you be buying shares in Lloyds TSB?

sabretoothtigger

no its not clear because the price of these shares operates parallel to reality.

Lloyds has some rumour about assessing its insurance companies for sale and that could be enough for it to touch 1 pound for all I know

Whats action date mean, not record date I guess as surely the price will adjust around that point

Hatone

I bought several hundred shares in Lloyds on Friday.

Am I eligible for this open offer???

Thanks

Decadent_Fool

Hatone wrote: »

I bought several hundred shares in Lloyds on Friday.

Am I eligible for this open offer???

Thanks

I'm not sure, as I spoke to them this morning and I think it was the 18th that was the important date. As I understand though, that was only to establish an entitlement, in theory everyone can take up these shares (I think). Give 'em a bell on the number and see what they say.

When I spoke to them this orning the confirmed that the 0.43 is incorrect, but couldn't say what it was going to be!

mrposhman

Decadent_Fool wrote: »

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

Someone else on iii.co.uk has a very similar email but then received a later one saying that it was wrong. The main issue with the entitlemnt figure stated in the email is that it dosn't make sense financially.

There are currently 16.5bn shares in issue, if the entitlement is 0.4347 then this means there will be an additional 7.2bn shares which creates £2.7bn.

This doesn't cover the £4.04bn that is required to pay off the pref shares and the entitlement should be more like 0.64 for each one in order to cover off £4.04bn.

I doubt anyone will know the proper record date before the prospectus is released. I would assume that any shares purchased currently would be subject to the open offer though that may change and a date in the past may be used, but IMO the only thing this will achieve is a mass sell-off by those not allowed to participate which would cause a reduction in the SP so I would think the record date will still be some time in the future.

Hatone

Decadent Fool,

Thanks for that. I contacted my broker. This was the response I received:

'' There is currently no information regarding this issue. As soon as the company makes a definitive announcement, we will advise all clients in the usual way. If you continue to hold Lloyds shares from now until the relevant entitlement date you will be entitled to take part in the issue''

So it appears I may be eligible as an entitlement hasn't been ''officially announced'''.

Decadent_Fool

Fingers crossed.

Anyone looking to snap up a few more over the following days? Dare anyone predict how far this current downtrend will go? I think there's a touch more profit taking, but mostly (imho) its panic now feeding the profit taking snowball.

Hatone

I agree. It is pretty miserable at the moment, but most importantly looking at this long-term is a must. I’m not looking to make a quick buck on these bank trades by profit taking. Today’s downturn (not helped by the fall in Asia overnight) has simply pulled a rug under Footsie and The Dow and sent a shockwave right across the financial world. [FONT=&quot]

[/FONT]The markets get unbelievably spooked so easily….[FONT=&quot]

[/FONT]My fear is, how long will it be before we see another last week’s rally?

I wish Barclays could make a bloody decision whether they'll join the Asset scheme and the sale of its iShares..

sabretoothtigger

They dont want to join afaik, read pestons blog. Its expensive and they consider themselves banking royalty or something :laugh: Its unlikely but maybe they even made decent loans

With the downtrend, it seems obvious to me that we're in a bear market and we've had a very strong rally.
So we've reached the top of the rollercoaster and the momentum is very much down from here. I dont know indivually or the timing but being a pessimist is quite easily the correct position on any trade


The usa markets gapped lowered and Im told this means they have lost the previous strength so it equates to falling through the ice, they have significant resistance to any positive move from here. There is no certainty but those are the odds

Decadent_Fool

April 1 (Reuters) - UK BANKS: * JP Morgan cuts Royal Bank of Scotland price target to 17P from 25P; rating underweight *
JP Morgan cuts Lloyds Banking Group price target to 14P from 67P; rating underweight *
JP Morgan raises Barclays PLC price target to 115P from 114P; rating underweight
((Bangalore Equities Newsroom; +91 80 4135 5800; within U.S. +1 646 223 8780))

Currently down 6.44% at time of writing, wonder if they'll really go to 14p? I don't think so, but we'll see...

Hatone

Sounds heavily undervalued to set the target price at 14p.

I wonder if JP Morgan are holding a short position......;)