Share Dealing Discussion Area

joeypesci

I assume its possible to buy NASDAQ stocks like Google from an English broker? Also, being totally, totally new to all these, the prices are in pence right? So when it says 402.20 that's pence right? Meaning £4.02p?

david69_2

MacsReturns wrote: »

Hi TSMiggy - I'm in exactly the same position, had some FP shares from the demutualisation and just held on to them, then they were turned into Resolution. And now this rights issue comes up (which they will probably continue with even if the AXA deal falls through, by the way). You (... we ... ) should receive a communication soon to determine what to do with our rights.

What will happen is that your existing shares will be consolidated 30:1 (ie 30 old shares become one new share) and for each new share you hold, they will give you rights to buy 17 more new shares at a discount, at £1.50 per share.

There are a few choices you'll need to make - like do you want to and can you afford to take up your rights in full? In my case I have about 180 old shares, giving me rights to just over 100 new shares. If I exercise my rights then I will have to pay £150 for the new shares. Alternatively, you can sell on your rights, and I believe that would be around 92p each (so I would get £92 back, but my holding would stay at the consolidated position of 6 shares which is now worth a lot less as the stock has been 'diluted' by the new shares issued.)

It's a bit vague yet but you can expect (roughly) a market value of the new shares to be around £2.40 - so if you can afford to buy them at £1.50 there is a gain to be made.

If you just freeze in the headlights and do nothing at all, then I believe your rights will be sold on your behalf, and eventually a cheque will arrive!

There is a final option on offer which goes by the technical name of 'swallowing the tail' in which you can sell some of your rights (I think in this case it works out around 60% of them) and use the proceeds to exercise your remaining rights (ie ~40% - you need to sell 150 to pay for 92). This way you get part of the allocation at no extra cost to yourself - this will be one option you can choose when you get the communication.

If you want more detail, Resolution have posted up all the necessary regulatory notices on their website: www.resolution.gg - obviously the language is a bit turgid, but it explains it all in excrutiating detail

FWIW, I've decided to exercise my rights in full... but that, of course, is not advice in any way shape or form. Just my decision for my situation. But hope it helps, anyway. :beer:

Iam normally quite good at understanding shares etc but i dont know what to do .
I've got 1505 resolution shares i recieve a letter today detailing the rights issue.
Its says box 1 holding of ordinary shares as of close of business 16th july 1505.
number of consolididated shares 50
box 2 number of rights allocated to me 852
box 3 amount payable in full on acceptance at 150 pence per ordinary new share £1278.

help:eek:

sabretoothtigger

If you look up Questor he commented on Resolution.

They turned your old shares into 50 more expensive ones = consolididated

You have rights to 852 new shares at 1.50 cost each

sabretoothtigger

joeypesci wrote: »

I assume its possible to buy NASDAQ stocks like Google from an English broker? Also, being totally, totally new to all these, the prices are in pence right? So when it says 402.20 that's pence right? Meaning £4.02p?

uk shares are in pence and usa shares are in dollars I think. A uk broker would refer the business usually, not all of them handle nasdaq that way or at all

cue

joeypesci wrote: »

I assume its possible to buy NASDAQ stocks like Google from an English broker? Also, being totally, totally new to all these, the prices are in pence right? So when it says 402.20 that's pence right? Meaning £4.02p?

I know the halifax share dealing service allows you to as i bought apple corp shares through them. Albeit at a higher commission rate so it'll take a while for me to realise any returns.

tsmiggy

david69 wrote: »

Iam normally quite good at understanding shares etc but i dont know what to do .
I've got 1505 resolution shares i recieve a letter today detailing the rights issue.
Its says box 1 holding of ordinary shares as of close of business 16th july 1505.
number of consolididated shares 50
box 2 number of rights allocated to me 852
box 3 amount payable in full on acceptance at 150 pence per ordinary new share £1278.

help:eek:

Join the club,i have not got a clue what its all about.

box 1 909 consolidated shares 50
box 2 515
box3 £772.50 (i assume thats money wanted from me for something or other.

god knows what this is all about:eek:

david69_2

when i first read it i thought they are going to give me some money but no I've got to pay them £1278 to get some more shares which hopefully should be worth more than the old ones

tsmiggy

Thats all well and good,if you are in a position to buy the shares.To be honest i do not feel like splashing out £700 or so pounds right now.

david69_2

I'm the same I'm not in a position to spend that sort of money

turbobob

It is pretty complicated. Firstly, there has been a 30 to 1 share consolidation - i.e. as of today you hold 1 new share for every 30 of the old shares you had. Then there is the rights issue. This is to finance the takeover of Axa's UK life business. You have several options associated with this. You should have had a rights issue guide but if not you can get one here - http://www.resolution.gg/investor-relations/acquisitions/axa-uk-life-assurance-acquisition-final.aspx

The options basically are:

1 - Take up all of your rights. This will mean your holding (as a percentage of issued shares) in the company will stay the same. You will need to stump up £1.50 for each of your rights, so in David69's example it would be 852 x £1.50 = £1278. After this you would have 902 shares. £1.50 is a discount to the market value of the shares at the moment - they closed today at £2.46p

2 - Take up some of your rights through a cashless take up - basically some of your rights are sold and the proceeds buy the remaining rights. You will not receive any cash, nor need to pay anything. After this you will have more than 50 shares, but less than if you took up all of your rights.

3 - Sell your rights - you will receive cash for your rights. You will continue to hold 50 new shares. Your holding in the company as a percentage will be significantly lower than it was before the rights issue.

4 - Do nothing - rights lapse. They default to selling your lapsed rights and sending you the proceeds.