Taylor Wimpey share offer @ 25p

welshmoneylover

Hi

I'm dabbling in shares trying to build up a portfolio for the long term - 5 years +.

I've read that Taylor Wimpey are going to offer some shares ridiculously cheapish at 25p next month.

I'm just wondering if I need to register somewhere to buy them or can I just go straight through Lloyds share dealing service?

I know it's a gamble with buying shares right now, but there we go, it's a risk I'm prepared to take.

BTW, what do you think about buying these shares long term?
Worth a punt or waste of dosh?

Ta v much

FoxtonsRIP

Is it a rights issue. If so, you need to already hold Taylor Wimpey shares to buy them.

Also taylor Wimpey shares are low for good reason, the housing market is fooked and they're desperate for money.. They're no bargain.

savermonkey

Do you already have Taylor Wimpey Shares?
Its a righs issue, introduction of more shares to raise capital.

My understanding is you can buy up the same amount of shares you already own at the 25pence rate.

EDIT - think Foxtons anwsered 30 seconds before me.

welshmoneylover

Thanks both, no I don't have any TW shares at all. In fact, I thnk I might go ahead and buy a few at 34p. If they rise great, if they fall or go bust well I haven't lost a great deal!

mrposhman

I don't know why people say they will go bust. They have ensured that all their bonds have been rengotiated and the open offer / placing is in order to pay for their short term debt that is due next year. They have therefore safeguarded their future for the foreseaable future (at least to 2012) so should be an ok bet.

Don't assume they will rise to £5 like before though. There has been significant dilution so it won't get anywhere near this level but imo over a 3 year period should provide a decent return.

Ps. I have taylor wimpey shares too and am taking up the open offer.

adambro

There are two things happening. A 1 for 1 open offer to current shareholders at 25p and a placing of new shares also at 25p available to new shareholders. I don't know how you would go about buying at 25p if you don't hold any TW shares yet but it might only be open to the institutions.

I disagree with Foxtons' very pessimistic view though. Certainly the conditions are very challenging in the housing market but Taylor Wimpey has demonstrated that it is prepared to take steps to ensure they have a secure future. This is reflected in the share price that got down as low as around 5p but steadily increased to 50p as the company took action.

This certainly isn't a company that is going to go bust now in my view and will be well placed to benefit from the inevitable improvement in the housing market.

fergual2

Welshmoney lover - I am also bullish on TW. You can buy right now for around 30p as all stocks are currently 10-12% down. Be brave and you could see 80p by October. good luck.

6022tivo

I have 1999 shares in taylor wimpy, I have had e-letters today about this shares issue. Something about the I will get 1999 1p shares with the option of buying at 24p.

I don't know where my current shares are going to go...

Sounds like my 1999 shares will be changed to 1p shares and to get the same 1999 shares, I have to top up my account with 1999 x 24p???

I was stung by B&B and the rights issue a couple of weeks before Gordon took them at 20p, and never paid me back...

ad44downey

welshmoneylover wrote: »

I thnk I might go ahead and buy a few at 34p. If they rise great, if they fall or go bust well I haven't lost a great deal!

Surely in this scenario you've lost everything that you've invested?

adambro

ad44downey wrote: »

Surely in this scenario you've lost everything that you've invested?

Indeed. Presumably he wasn't intending to invest much hence his relaxed attitude to loosing it.

sabretoothtigger

He can buy the rights to it I think, its like a short dated options


I believe this share has been lower then 25p so you might be better off to sit and wait or use a regular investment plan to distribute risk over time

Day's Range:29.75 - 37.75
52wk Range:4.26 - 136.25