Northern Rock - Shares [Merged Threads]

bristolleedsfan

littlesaint wrote: »

I'm a small shareholder and I will vote in favour of the Virgin proposals. I just hope the big shareholders accept this is the best deal for everyone.

as a small shareholder ( like myself) do u recognise that when companies do share buy backs they reduce the number of shares in circulation which therefore increases the share price. :j

what virgin are proposing is to invite existing shareholders to buy additional shares at 25p, i await to be corrected, my belief of this is that this will have the opposite effect of a share buyback in that the market will be flooded with NR shares, result being a massively reduced share price at least in the short term and probably until bank of england have been paid of.

baby_boomer

bristolleedsfan wrote: »

as a small shareholder ( like myself)

I hadn't realised you were vertically challenged, blf .

You are right to highlight the dilution element to the Virgin deal, though. But what else can shareholders expect given that they are only propped up by government loans?

littlesaint

bristolleedsfan wrote: »

what virgin are proposing is to invite existing shareholders to buy additional shares at 25p, i await to be corrected, my belief of this is that this will have the opposite effect of a share buyback in that the market will be flooded with NR shares, result being a massively reduced share price at least in the short term and probably until bank of england have been paid of.

I realise that - but I think over the long term this will be better than cashing in my shares now. I got my shares when northern rock demutualised and would rather go the distance. Don't think I'll be increasing my shares, though. The past couple of months have been stressful enough for me!

isofa

littlesaint wrote: »

I realise that - but I think over the long term this will be better than cashing in my shares now. I got my shares when northern rock demutualised and would rather go the distance. Don't think I'll be increasing my shares, though. The past couple of months have been stressful enough for me!

I agree with littlesaint, as they worth so little at the moment (especially when you compare with the dizzy heights 9 months ago), so you might as well hang onto them and see what becomes of them, you never know, you need to be prepared to loose the lot, but the "lot" isn't that much now anyway!

I personally wouldn't buy any more though, even if you gave me the money to buy them with!

Aegis

isofa wrote: »

I agree with littlesaint, as they worth so little at the moment (especially when you compare with the dizzy heights 9 months ago), so you might as well hang onto them and see what becomes of them, you never know, you need to be prepared to loose the lot, but the "lot" isn't that much now anyway!

I personally wouldn't buy any more though, even if you gave me the money to buy them with!

If you wouldn't buy, then with the Virgin offer you probably shouldn't hold either. The continuing value of your shares seems to be dependent on your purchase of 7 new issue shares at 25p for each of your current ones. Otherwise you'll essentially watch your share value plummet down to whatever the shares are worth after the new issue, which sounds like it's not going to be much!


That's how I've interpreted their offer anyway...

bristolleedsfan

codger wrote: »

LibDem Leader Vince Cable has just said the Virgin bid is unlikely to succeed and The Treasury is aware of that so is drawing up plans now to "temporarily" (?) nationalise NR.

The bid won't succeed (says Cable) because of shareholder resistance -- and because Sir Richard is only the "front man" for a group which includes some of dubious character / background.

Huh????

nice to come across someone who takes notice of the lib dems, ive always seen them as an irrelevance. :rotfl:


heres a good lowdown on the virgin/NR position as things are atm. ( this isnt a reply to your quote just general reading)

http://news.bbc.co.uk/1/hi/business/7112830.stm

heres some chat from elsewhere.

http://www.lse.co.uk/SharePrice.asp?shareprice=NRK&openmessages=%5B70470%5D

catz1ct

I just hope its sorted out soon

codger

bristolleedsfan wrote: »

nice to come across someone who takes notice of the lib dems, ive always seen them as an irrelevance. :rotfl:

Grossly unfair.

Anyway, ever since the Monster Raving Loony Party was absorbed into New Labour (losing all its saner policies in the process) the lib dems have been The Only True Alternative.



And I like Vince Cable.
Perhaps because he dislikes Richard Branson.

littlesaint

Aegis wrote: »

If you wouldn't buy, then with the Virgin offer you probably shouldn't hold either. The continuing value of your shares seems to be dependent on your purchase of 7 new issue shares at 25p for each of your current ones. Otherwise you'll essentially watch your share value plummet down to whatever the shares are worth after the new issue, which sounds like it's not going to be much!


That's how I've interpreted their offer anyway...

Since posting yesterday, I've done some reading. I was under the impression that my shares would be devalued, what I didn't realise was how much by. Here was me thinking that I'd have a share in much less of the company - I didn't realise that if existing shareholders do not take up the discount share options they will only hold 6% of the company. I was basing my response on the assumption that existing shareholders would hold between 20 - 33% of the company.

Still, it's better than nationalisation or administration. But I would have to find my share certificate before selling - that's one of the things that prevented me from doing this earlier!

Phaelok

Hey guys,

A few days ago I decided to purchase some Northern Rock shares. Rather than doing the daft thing of investing several thousand pounds, I decided to purchase only £100 knowing that if all goes wrong then it wasnt that much to lose.

I wanted to find out how it is possible to purchase shares at 25p, does one have to be a shareholder up to a certain period, hold a certain amount to qualify etc?

I purchased them at 97p per share, nice to see that at present they are worth 1.20 each. Even if it doubles it would have been a fairly nice return

Thanks