LLoyds Open (Exchange) Offer NOV 09

anna42hmr

if i buy shares through halifax online share dealing does any one know if they charge their usual dealing fees to take up the rights issues???

lotsadogs

sabretoothtigger wrote: »

lloyds and barc recommended here

http://www.telegraph.co.uk/finance/markets/questor/6496141/Lloyds-investors-should-take-up-rights-in-turbulent-time.html

Thank you for posting that.

Becasue I have no spare money to buy into the LLoyds rights issue and didnt want to suffer the innevitable price downturn with my existing holding, I sold all my LLoyds shares on Tuesday. I didnt see I had a choice.

sabretoothtigger

Im not sure any more is lost on rights issues inevitably, their prospects are improved this time at least but banks might go down anyway in which case you did good

anna42hmr wrote: »

if i buy shares through halifax online share dealing does any one know if they charge their usual dealing fees to take up the rights issues???

I expect no charge

Rollinghome

lotsadogs wrote: »

Becasue I have no spare money to buy into the LLoyds rights issue and didnt want to suffer the innevitable price downturn with my existing holding, I sold all my LLoyds shares on Tuesday. I didnt see I had a choice.

When the shares go ex-rights their value goes down by the value of the rights which can then be traded independently of the shares. But the value of the shares plus the rights together should be worth roughly the same as before (ignoring normal movements). It's that splitting of the rights from the shares that makes it look as if the price has dropped.

If you don't want to exercise the rights you can sell them or the company will sell them for you. The price always gets jittery when there's a rights issue and there can be a hit to the price if a large chunk of the rights aren't taken up due to the overhang or, alternatively, there can be bit of a boost if they fly off the shelves.

anna42hmr

sabretoothtigger wrote: »

I expect no charge

thanks for the reply, i appreciate it

blues4ever4

as a complete newbee [joined forum today] I have a letter offering me 312 x 37p shares for £115.44. Does anyone think this is a reasonable punt medium term or a complete waste of money? thanks

ANGLICANPAT

My 90's++ yrs young mum has also been sent an offer for about £167 worth of new shares at 37p. Im having to do her business now (not worth an IFA)and know little about shares, all I do is a little bit with equities in funds. Her original shares were free from a takeover. Opinions seem to say taking advantage of these rights is a good idea, but that it will take a long while to show any benefits. Anyone feel strongly they will fail?
When she dies do the original shares, with or without these new ones, continue as they are ,transferred to her inheritor ie me, or do they have to be sold automatically on her death.
Im tempted to do nothing, but last time I did that ,thinking everything would resolve itself with roughly the same financial result , I held on to her shares for NR and she lost around 7k, so Im feeling obliged now to makea greater effort to make the right call although not a lot of money involved. If I want rid now, I cant work out whether its financially better to actively sell them now thro' the method offered, or let the shares offer lapse and get paid the average price. Any advice welcome. Thanks.

dzug1

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.

sabretoothtigger

Someone in their ninities shouldnt hold shares, not unless its a hobby and money to spare. There nothing reliable about lloyds prospects or dividends. Anything like this should have been sold twenty years ago or as soon as it was acquired I guess but right now sell the rights is probably best rather then put in even more money

a reasonable punt medium term or a complete waste of money?

Probably best to read a newspaper on this, rather then ask strangers on a forum but I reckon its a reasonable offer.
The bank loaned too much on poor near term prospects, they can 'borrow' from government at unreasonable and disadvantaged terms but luckily everyone is optimistic right now and the private sector has already said we will back your fundraising lloyds.
Your yay or nay doesnt alter anything except your own prospects really, selling rights reduces your ownership or if you contribute to the fundraiser you will stay fully invested and benefit fully from any long term rise.
In my opinion uk house debt will not duplicate the losses of america but if it does now might be the time to take some money out I guess though 1 year ago would have been better!

Could always sell the rights and buy shares after xmas if need be, maybe the share price will drop more or maybe not


Is lloyds doing a scrip dividend at any point, or is it zero for two years?

I cant work out whether its financially better to actively sell them now thro' the method offered, or let the shares offer lapse and get paid the average price.

The perfect time to sell rights will be sometime before the end I guess. The rights price varys like an option or mostly it works off the price of the main shares. Rights will be worth more as the shares rise, what shape will the graph be before expiry?
You want to sell rights as the shares peak, also options are worth more near term, as they come closer to expiry the volatility premium of an option is worth less as the final price becomes more certain

As I understand it, its better to sell rights sooner but also as close to the share price peak as possible. Its not totally simple unfortunately and I might be wrong anyway


The value of rights varied by 41% yesterday, here is the price - http://finance.yahoo.com/q?s=LBGN.L



http://thescotsman.scotsman.com/lloydstsb/Rights-and-wrongs-of-taking.5823933.jp


http://www.fool.co.uk/news/investing/investing-strategy/2009/03/12/how-to-deal-with-rights-issues.aspx?source=isesitlnk0000001&mrr=0.33


http://www.google.co.uk/search?hl=en&safe=off&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial&hs=zi6&q=investor+glossary+++rights+issue&btnG=Search&meta=cr%3DcountryUK|countryGB&aq=f&oq=

ANGLICANPAT

Many thanks, that was most helpful. Another question , related, if I may. You say the price can vary 40% within a day. Surely then , if things are that quick, isnt it just a pig in a poke as to what value you get as you dont when you send your Lloys form back ticking the 'c' sell of your rights box, know what day they will recieve it, never mind process it?