Next sale of Lloyds share

Fuzzythinking

Hi

I understand that the government is planning to sell the Lloyds share to retail investors in April 2014 and they will plan to offer discount to the LBG investors. But what will happen to our existing LBG shares?

Will our share be diluted?

Regards

Fuzzythinking

CLAPTON

Fuzzythinking wrote: »

Hi

I understand that the government is planning to sell the Lloyds share to retail investors in April 2014 and they will plan to offer discount to the LBG investors. But what will happen to our existing LBG shares?

Will our share be diluted?

Regards

Fuzzythinking

no, the shares already exist and are held by the government; so they are simply selling existing shares

Fuzzythinking

CLAPTON wrote: »

no, the shares already exist and are held by the government; so they are simply selling existing shares

This will shoot the price up like a rocket when the sale happens in April.

F

Biggles

Fuzzythinking wrote: »

This will shoot the price up like a rocket when the sale happens in April.

How would that work?

This isn't an IPO, like the Royal Mail offer, where new shares are issued at a fixed price.

If a load of shares are sold, that usually results in the price going down, in fact.

Fuzzythinking

Biggles wrote: »

How would that work?

This isn't an IPO, like the Royal Mail offer, where new shares are issued at a fixed price.

If a load of shares are sold, that usually results in the price going down, in fact.

It shows that the investors have the confidence in LBG as the profit will rise and the PPI compensation hopefully will go down eventually. The dividend will resume this year and it will rise in due course.

The CEO of LBG has bought a few hundred of thosuand pounds which is another good indication.

I reckon LBG is a good bet. :money:

F

brasso

Fuzzythinking wrote: »

I reckon LBG is a good bet. :money:

F

Do you mean LLOY....?

Biggles

Fuzzythinking wrote: »

It shows that the investors have the confidence in LBG as the profit will rise and the PPI compensation hopefully will go down eventually. The dividend will resume this year and it will rise in due course.

The CEO of LBG has bought a few hundred of thosuand pounds which is another good indication.

I reckon LBG is a good bet.

All of the above may or may not be the case with several shares, depending on one's assessment.

We don't yet know how much of a market there'll be for Lloyds shares; if anyone wants them at the current price they can buy them now, so there may have to be a cut-price deal to shift that many, which will drag the price down.

I was mainly wondering what you thought would 'shoot the price up like a rocket' in April?

But DYOR....

Fuzzythinking

brasso wrote: »

Do you mean LLOY....?

Yes, That is correct. Lloyds Banking Group.
F

Fuzzythinking

Biggles wrote: »

All of the above may or may not be the case with several shares, depending on one's assessment.

We don't yet know how much of a market there'll be for Lloyds shares; if anyone wants them at the current price they can buy them now, so there may have to be a cut-price deal to shift that many, which will drag the price down.

I was mainly wondering what you thought would 'shoot the price up like a rocket' in April?

But DYOR....

Funnily everyone had been told to stay clear of Lloyds share a couple of years ago when it was about 30 pence. On the other hand, I followed my instinct to ignore what everyone had been saying. The price rose steadily up to 80 pence.

Now everyone say Lloyds share is a good investment while other says sell them now. Again, I know 80 pence is far too cheap and I am confidence that it should be worth in the region of £1.30 and £1.80 from April to 2015 due to the fact that it is generating decent profit and dividend will resume like I said before.

Of course who know I might be wrong after all. I reiterate I am banking on Lloyds share will move above a quid and rise further between the late summer and autumn.

F.

sabretoothtigger

have you worked out the market cap of lloyds at 1.80
Like 230bn I think, one of the worlds largest listed companies. Impressive when they lost so much money

Glen_Clark

Fuzzythinking wrote: »

It shows that the investors have the confidence in LBG as the profit will rise

F

The Government is the biggest investor. How does an investor selling their shares show confidence in the company?