Will you be buying shares in Lloyds TSB?

sabretoothtigger

Pesto agrees

http://www.bbc.co.uk/blogs/thereporters/robertpeston/


He says its a good repayment for government but actually its more to the benefit of shareholders since no fat interest will be payable now afaik.
Except those non voting shares not yet issued will give 7% in future

ian-d

Sorry, someone just remind me, when do these shares get released on to the market, i.e. when it is most likely that the current share price will be diluted significantly enough for me to think about buying in for a long term investment?

sabretoothtigger

I dont know the date but in theory the new shares are already factored in, we saw a big drop after it went ex
Its not likely to dip or gap lower like that again for the same reason, might be the 9th but watch next week

sabretoothtigger

Just to update, the shares were credited today. I dont know about the placement exactly but tomorrow or next week i guess

LLOYDS BANKING GROUP PLC - Notification of Receipt of Entitlements



Following your election to purchase New Lloyds Banking Group PLC Ordinary shares under the recent Compensatory Open Offer, we can confirm that your election has been processed, in accordance with the terms of the Offer, on the following basis:

1 New Lloyds Banking Group PLC share at a cost of 38.43 pence per share. How This Affects You:
Your account has been credited with new LLOYDS BANKING GP shares

Important Information & Other Key Dates:
Unless we have notified you otherwise, your election was based on your Ex Date entitlement and cleared funds available in your account at the time we processed your election.

Any Lloyds Banking Group PLC Ordinary shares not taken up in the Compensatory Open Offer by qualifying shareholders will be placed in the market at a price no less than 38.43 pence per share. Any proceeds raised in excess of 38.43 pence per share will be distributed on a pro rata basis to those shareholders who did not participate fully in the Compensatory Open Offer.

Diversified

Like with all these things, I think you need to be aware of the downside- it could do a 'Northern Rock' (although, in my opionion, this is now unlikely). People who where buying Northern Rock right down the bottom didn't think it could possibly go lower either- I had a friedn who did that!

I think Lloyds is a punt, and risky- but the maximum downside is 100% of your money (nationalisation) and the potential upside, if you're prepared to wait, could be 300-400% if it evetually gets back to previous levels! I've taken an even bigger punt and leveraged it, though...:o

Thrugelmir

Diversified wrote: »

Like with all these things, I think you need to be aware of the downside- it could do a 'Northern Rock' (although, in my opionion, this is now unlikely). People who where buying Northern Rock right down the bottom didn't think it could possibly go lower either- I had a friedn who did that!

I think Lloyds is a punt, and risky- but the maximum downside is 100% of your money (nationalisation) and the potential upside, if you're prepared to wait, could be 300-400% if it evetually gets back to previous levels! I've taken an even bigger punt and leveraged it, though...:o

The upside of Lloyds is the merger savings of Llloys and HBOS into the future. In a normal market conditions there would have been no chance of the 2 businessess being allowed to join forces. Lloyds also currently dominates the UK mortgage market so can control market rates to an extent.

Also worth remembering that the Lloyds core business was profitable prior to the merger.

Kua

Thrugelmir wrote: »

Also worth remembering that the Lloyds core business was profitable prior to the merger.

Indeed. I want to stress again how uninitiated I am in these things, but Lloyds strikes me as a solid company that made a very stupid mistake.

I couldn't help buying in today. Seemingly the sale of those OO shares did drive the price down...

ave_a_ris

Kua wrote: »

I couldn't help buying in today. Seemingly the sale of those OO shares did drive the price down...

Is that what drove the price down today? The OO shares are being traded already?

mrposhman

ave_a_ris wrote: »

Is that what drove the price down today? The OO shares are being traded already?

Certainly are, just checked my platform and they have been credited this evening.

Kua

Aye. Almost half a billion worth of shares changed hands today. The share price will be pretty volatile for some time yet.