Lloyds 37pence right issues

Lakeuk

The following link explains the 3 options available:-

http://www.thisismoney.co.uk/investing/article.html?in_article_id=495105&in_page_id=166

cashbackproblems

Share price will keep on falling until the 14th of December when all new shares will have had to be taken up or released to the market tho this has probably been factored into the price. I sold out last week when the sp hit 95p as even though you get extra shares for 37p as pointed out it simply stops ur holding being diluted, in the short term you are gaining nothing.

ANd if the sp drops much below 45p it would have confirmed my decision to sell pre RI.

Rollinghome

Lakeuk wrote: »

The share price has already dropped to reflect the additional shares that will be entering the market

The primary reason for the drop is simply because the shares went ex-rights last week.

sabretoothtigger

Underlying share price has fallen about 20% thanks to dubai and just the depressant factor of the rights I guess but this is similar to last time and it rose back then and was the best performing share on the ftse100 for while in summer.
Looks pretty dismal at present though

Rollinghome

I made the underlying price down 15.7% from the day before the Dubai news and including the 4% fall during this morning at noon - but that might be due to my fumbly fingers or inadequate arithmetic.

p1tse

do i or don't i...hmmm

sabretoothtigger

It rose back up some from noon. Shares not bought by smaller investors will go to the stockmarket behemoths to hold I believe, you get first choice so you cant complain about being sold out unfairly
A volatility dip in the price meanwhile is fairly normal plus normal variation, news, etc


I personally sold to buy some later on as I hold other banks too but I might have speculated wrongly. Some broker rated them for 100p