Vodafone

steady__eddie

Please don't give up, I have been enjoying this debate for the last couple of days. All good things come to an end.......so it is said.

Paul_Herring

derrick wrote:

more money for the directors!

.. well that was going to happen regardless of what they do with the shares

cheerfulcat

derrick wrote:

OK let me try and put my point in words that even you 2 can understand.

It's not that we don't understand you; we do, perfectly. It's that you are wrong. Everyone still owns exactly the same proportion of the company as they did before; if you buy more shares now you will own more of the company than you did before, not the same amount. You are allowing the number of shares to cloud the issue.

Taking my first comment in this post, go to the next level, the pension funds etc, who have also had shares compulsorily sold but in much higher volumes, if they do the same as my suggestion and buy back to their original allocation, we again have no difference to the situation before the con!!

But they probably won't because unlike you they know that their share of the company remains unchanged.

derrick

cheerfulcat wrote:

But they probably won't because unlike you they know that their share of the company remains unchanged.

But the monetary value is not, i.e. they have less shares at a lower price than what they where sold at,(todays price £1.16), but are now holding a cash value that they never wanted, otherwise they would have sold the shares themselves.

Chrismaths

Look, read this
If you still don't understand, then no-one can help you.

This is simply a special dividend payment - if you don't like dividends, select a share that doesn't pay any.

derrick

Chrismaths wrote:

Look, read this
If you still don't understand, then no-one can help you.

This is simply a special dividend payment - if you don't like dividends, select a share that doesn't pay any.

From your link:-

Share consolidations
These are exactly the same as splits, except that you will have fewer shares worth more each rather than more shares worth less. Consolidations can be driven by events such as National Grid’s return of cash to shareholders, through takeovers, divisional sell-offs and so forth.



But they have DROPPED since the consolidation so makes a complete mockery, all my previous comments stand.

Charlton_Taz

Can I attempt to maybe explain this in a different way....

Treat the 15p you got per each of your original shares like a normal dividend (forget the fact it was called a B share - that was just for the convinience of shareholders for tax planning purposes)

If they hadn't have done the consolidation the share price of you orginal shares would have gone down by 15p each i.e to about £1.01. Why? Because the company was worth less because the company was paying out some cash held within the business as dividends. In all companies the share price will go down when a dividend is paid out.

Instead they consolidated the shares to achieve the effect that the share price wouldn't flucuate so much (not withstanding any other news relating to the company) e.g

3,014 original shares x £1.01 (new reduced share price) = £3,044

or

2,637 consolidated shares x £1.16 = £3,059

i.e. roughly valued the same!!!!

Therefore the shares you own are worth the same in both scenarios whether or not they did the consolidation...and as many other people have pointed out you own the same proportion of the company as you did before.

The only reason they did the consolidation was so there was a sharp fall in the share price.

Hope that helps!!

derrick

No because whilst I have the same capital I have compulsorily been forced to relinquish 377 shares and therefore amongst other things will not receive the same amount of divdends unless I repurchase the shares, costing me money in DEALING CHARGES.

The share price has been less (98p) and they did not consolidate.

Chrismaths

Note to all: Please do not post any further in this thread. Despite multiple explanations, derrick will not accept that he has not relinquished any shares and seems incapable of grasping the simplest concepts. YOU ARE WASTING YOUR TIME.

cheerfulcat

You will receive exactly the same share of dividends as before because you still own exactly the same share of the company as before.

Edit: Oops, sorry Chrismaths but I'll let it stand and say no more.