Standard Life flotation

Katykat

I've been allocated 854 shares. I have a SMALL pension due which I could take anytime as I am over 50. The only reason I've not done so yet was to hold on until SL demuted. They tell me that if I hang on to my shares for 12 months, I will get bonus shares ( 1 for every 20), but if I sell after that, I'll have to pay to sell them, so that would soak up some profit. My OH tells me it all depends on the share market, could go up, could go down. Now it's estimated the share price MAY be between £2.40- £2.90 at flotation. SOOOOOO, any experts have any views on which way the share price will go? Should I sell on flotation, or should I hold on for 12 months. OH thinks I should keep half, sell half, but I'd rather keep it simple.. I wont be reliant on the pension as I now have NHS pension due when I'm 60 ( in 7 yrs) plus I'm still working, so think I'll draw my SL pension( or at least shop around for a possible better annuity)

EdInvestor

Suggest you repost on the thread in the Savings forum.

rich_the_moneysaver

It appears that you may be counting your chickens before they are hatched.

Firstly the votes need to be 75% YES for the floatation to go ahead and reading some financial forums, it appears that it is not going to be that straightforward!!

If all goes well however your shares would float around £2.60, and if I was you ( THIS IS NOT ADVICE) I would keep them and enjoy the dividend twice a year (possibly about 3- 6% earnings).

You could still draw your pension anyway and bearing in mind the stockmarket/ FTSE100 is still undervalued at its current state, those shares would possibly be a future asset for you. Obviously not all demutialisation shares are winners however reading this article will provide you with an informed decision:- WINDFALL ARTICLE

The article states windfall shares ARE winners and even more so if you reinvest the dividend!!:beer: