Northern Rock - Shares [Merged Threads]

Browntrout_2

The shareholders are last in line and the queue is very long, they have just announced one third of their workforce is being paid off of, over the next three years, with the majority of these in the first year. Those employees redundancy pay is somewhere near the top of the line, if not the top.

Don't shoot the messenger, but in my opinion you should write this investment off, that way any payment will be a bonus if it happens.

I am getting back £30 from the collapsed telecom firm Ionica in which I held shares, this was last century sometime!

0.1p per share something like that!

benood

Don't hold your breath, it took a fair while after railtrack I think, the hedge funds have funds for litigation so it will drag on for ages until they(?) determine 400p per share (if only)....

Aegis

benood wrote: »

Don't hold your breath, it took a fair while after railtrack I think, the hedge funds have funds for litigation so it will drag on for ages until they(?) determine 400p per share (if only)....

I think 40p is more likely, unfortunately (unfortunate for investors anyway, not so unfortunate for taxpayers in general).

meester

Aegis wrote: »

I think 40p is more likely, unfortunately (unfortunate for investors anyway, not so unfortunate for taxpayers in general).

40p would be absurdly generous.

The precedent from Bear Stearns would be more like 10p.

Money_Saving_Forever

Hi all, does anyone or has anyone donated to the UKSA in relation to NR? They are planning legal action and need donations to the tune of £25 per private shareholder (more if you had 1000+ shares). SRM are a hedge fund who are launching legal action regardless and they are looking for about £4-5 per share compensation as they believe the government has rigged the valuation of NR.. I don't mind giving UKSA a donation but would like to know fellow MSE members opinions .. Apparently to date, £6bn of the debt has already been repaid to the BoE and the rest is planned to be paid back by end of 2010 which angers me as something doesn't quite add up considering the original pay back date was like 2014?? Usual government tricks? :eek:

Aegis

Personally I think it would be an absolute waste of money. SRM's figures for what they consider "fair" compensation are ridiculous. NRK crashed down on its own, and many people (including SRM) chose to buy in, ignoring the old adage "Never try to catch a falling knife". They got burned for it, but now they seem to think that they should be paid for their bad investment decision. At the expense of the taxpayers, who have all already had to provide large quantities of money to this failed bank.

I feel sorry for the shareholders who didn't have a clue what they were doing, or who followed the bad advice of a few tipsters scattered around the web, but this is the way the investment world works. If your shares go bust, you can't just sue someone to make it better. NRK had a terrible strategy for low liquidity situations, and paid the price for it.

If you ask me, the end result of this legal process will be a lot of wasted money in legal fees and a compensation amount of less than (certainly no more than 10% above) the 90p value that trading was suspended on.

napoleon

meester wrote: »

40p would be absurdly generous.

The precedent from Bear Stearns would be more like 10p.

I agree 10p is quite likely. And that would stlll be 10p too much. :j

benood

I've got a vested interest but SRM & RAB have a point - as I recall when the trouble with NR first broke and before customers started queuing up there was a lot of reassurance from government along the lines of "bank still solvent, nothing to worry about"

Going by the precedent of Railtrack you're looking at around 90p

meester

Money_Saving_Forever wrote: »

Hi all, does anyone or has anyone donated to the UKSA in relation to NR? They are planning legal action and need donations to the tune of £25 per private shareholder (more if you had 1000+ shares).

Sounds like a con to get your money.

Banderman

to the top.

A timely reminder to all those who think share prices that go down have to go back up again. And that B&B , HBOS, etc. must be excellent value as they've fallen in value so much....