Lloyds shares...again

poolielad

I already own about 4400 shares @44.5p each.......

I am thinking of buying another 5ks worth, do you think they will go much lower than what they are now, or do you think now is the right time to buy?????
And What is you "guesstimet" (its anew word i have just made up, sorry) to thew highest these shares will go in the future????

welshmoneylover

Who Knows?

Suppose it's a bit like asking for this Saturday's lottery numbers.

sabretoothtigger

Afaik they'll be asking you for money soon, you dont have to buy more when they are offering new shares soon.

Wait for them to offer because the price will beat the market (currently)

Buddy195

sabretoothtigger wrote: »

Afaik they'll be asking you for money soon, you dont have to buy more when they are offering new shares soon.

Wait for them to offer because the price will beat the market (currently)

The 1 for 40 shares thing will go to those holding on the 8th (I think). But what's the score with the shares at 38p are they available to anyone or just shareholders and the gov?

sabretoothtigger

The government is a shareholder and the underwriter I think. So the shares will go to one or the other afaik, I think government will not take up the offer unless they have to which means other lloyds holders can.
Ive really seen zero details on it unfortunately

http://moneyterms.co.uk/open-offer/

Buddy195

sabretoothtigger wrote: »

The government is a shareholder and the underwriter I think. So the shares will go to one or the other afaik, I think government will not take up the offer unless they have to which means other lloyds holders can.
Ive really seen zero details on it unfortunately

http://moneyterms.co.uk/open-offer/

When they offer the new shares at 38p does this mean that the share price (if you hold some now) would fall a lot? Have seen various people saying they will sell after the 1 to 40 offer goes through.

mrposhman

sabretoothtigger wrote: »

The government is a shareholder and the underwriter I think. So the shares will go to one or the other afaik, I think government will not take up the offer unless they have to which means other lloyds holders can.
Ive really seen zero details on it unfortunately

http://moneyterms.co.uk/open-offer/

It was stated in LBG's APS statement that HMG will take up their full allocation. I assume there is an agreement that they can't apply for more than their allocation like other shareholders. They will just sweep up any remaining shares after allocations have been accepted / declined by all shareholders.

Buddy - I don't see why people would sell after the 1 for 40? I would expect the SP to fall a little and this would be counteracted by having more shares. Also, only shareholders can buy shares in an open offer. There are 2 differences between rights issues and open offers. A rights issue gives you the right to buy a number of shares at a certain price in the same way as an open offer, the differences are in a rights issue, you can sell your rights if you do not want to buy them to either non-shareholders or other shareholders, in an open offer you can't but you can apply for more shares than you are allocated, you may get your full request, you may only get your guaranteed allocation or you may get your allocation plus a number of shares that have been pro-rated if the offer has been oversubscribed.

sabretoothtigger

Without buying they would see their holding diluted so I guess that makes more sense but also it seems strange hmg are buying shares so lloyds can fund a payment to hmg

Will this increase government percentage holding in lloyds or just maintain it

mrposhman

sabretoothtigger wrote: »

Without buying they would see their holding diluted so I guess that makes more sense but also it seems strange hmg are buying shares so lloyds can fund a payment to hmg

Will this increase government percentage holding in lloyds or just maintain it

I think Buddy mentioned that they were selling after the capitalisation issue (1 for 40) which is due to all shareholders so should have neglible impact on anyones holdings.

I could understand following what you say for the open offer but not the capitalisation issue.

HMG will receive £4bn in cash whereas they will only pay back 43% of that (if all shareholders take up their offer) so effectively HMG will actually have less taxpayers cash in LBG after the open offer.

HMG's % will only change if the open offer is undersubscribed as they will pick up any remaining shares but if it is oversubscribed it will stay at 43%.

Ballyorca

Sorry to sound like a numnut again but here's an odd one:

My mother-in-law was issued 11 extra shares on May 11th for the 1:40 Capitalisation Issue. Therefore I assume she has 440+11=451 shares. She hasn't sold any, yet her Compensatory Open Offer paperwork that arrived today has her holding 257 shares. Am I missing something here?

sabretoothtigger

257 is how many shares she can buy extra