LLoyds Open (Exchange) Offer NOV 09

Jake'sGran

dzug1 wrote: »

When she dies her executors will have the choice of selling the shares and giving the cash to her beneficiaries or transferring them direct without selling them.

I can't work out whether to sell the rights or let them lapse and get the cash (if any) either.

I sold my rights this week and the broker Share.Com charged their usual £7.50.
I can't think why I bought them in the first place and get annoyed with myself when this sort of thing happens but then I remember the profits I have made on many other equity purchases. "Can go up and down" as they always remind us!
Seems only people like Warren Buffet get it right every time.

cheekykid

Richard_DandR wrote: »

If I were to buy your rights, it would be at whatever the current market price is - say 20p making £2,696.60. I would then pay the 37p call (£4,988.71) giving me a total cost of £7,685.31 (average cost of 57p ie 20p + 37p).

The current market value of the fully paid shares is around 56p so I'd be losing 1p a share (£134.83).

The dealing costs on buying nil paid shares (and then paying the call) might be lower than buying the fully paid shares. Histoircally, Stamp Duty was not charged on nil paid rights so this would be one benefit (if it still applies) and isn't charged on the call payment. Not sure if the rules have changed re stamp duty on nil paid shares.

I understand the stamp duty point but we are talking about £20-30 here? There is really no real value for you from buying my rights in comparison to buy ordinary shares from other punters. Am struggling to see where's some clear value that worths "something" substancial(£200+).

Richard_DandR

Nil paid usually trade at a small premium to the fully paid, adjusted for the call.

A trader might buy at 17p and sell at 20p, making 3p profit (17%). A 3p movement in the fully paid share price would be 5.5%.

The fully paid would have higher dealing costs and require a larger amount to be spent to give the same profit.

Obviously, if the price fell to 14p, the loss in percentage terms would be greater for the nil paid than the fully paid.

sabretoothtigger

The final rights price was 18.5p roughly

http://www.heraldscotland.com/business/markets-economy/windfall-for-investors-who-shunned-share-offer-by-lloyds-1.992193

cardsharps

Don't put your chequebooks away just yet. It shouldn't be too long before their next rights issue.

Stewster

cardsharps wrote: »

Don't put your chequebooks away just yet. It shouldn't be too long before their next rights issue.

If you don't have anything constructive to say (either positive or negative), please don't bother to post.:mad:

Davidm99

I have some Lloyds shares which were with HSBC in an ISA.

I called them up to get my Rights Issue shares move from my ISA account, into a normal account and taken up to the full. Person on the hpone said they would do take care of this. I remember asking about the total buy price and how it would come out of my account, etc. At no time did the person say tell me i'd need to do anything rather that they were taking care of it.

Checking my account today it says 'LLOYDS BANKING GROUP PLC NIL PAID' and then a value of 21p x no of shares and a total cost. Maybe i'm wrong but I think this means the shares were not bought and i'm getting a value of 21p for my RI shares.

I get the feeling they moved the shares but did not exercise the buy. Am I correct or do I need to wait a bit longer! Really fuming here!!

cardsharps

Stewster wrote: »

If you don't have anything constructive to say (either positive or negative), please don't bother to post.:mad:

Ermm.... that's not how discussion forums work...

You should direct your anger at the board of Lloyds who're wasting your money, and not little ol' me.

Stewster

cardsharps wrote: »

Ermm.... that's not how discussion forums work...

You should direct your anger at the board of Lloyds who're wasting your money, and not little ol' me.

I'll direct my comments at who I like thankyou and I'm not angry - quite the opposite in fact as I have made a nice profit. Besides you're not discussing - just throwing the same old comment each time and its beginning to sound like a scratched record. If you put sound reasoning into your posts then they would contribute to the discussion.

sabretoothtigger

Davidm99 wrote: »

I get the feeling they moved the shares but did not exercise the buy. Am I correct or do I need to wait a bit longer! Really fuming here!!

Unless the trading account was funded with money required for the full purchase it does seem likely you sold rights instead.

But you could just buy now and get a cheaper price by the sounds of it. 21p rights plus 37p cost would have been 58p per share but lloyds traded today for 55.5p so fill your boots

Thats more then 4% discount to offset against any additional costs you may have buying this week instead