What if HBOS Goes Ahead with a Right Issue?

bristolleedsfan

TRUSt_NO_1 wrote: »

Banks will have to learn to rely on savers again (and the taxpayer-that's you- as is happening in USA right now)

Why do you think Halifax are offering 10% to savers ?

How many people can save money now,never mind when gas,electric,petrol,diesel,food have gone up another 30% ?


The housing market is going down a LOT more..
Average house prices will go down to 3 times income=circa £70k

It will take a while...


Millions will be in negative equity...and many will 'walk away' from their mortgage.

Christmas time...oh dear...ooh not much cheer at all !

?

Meanwhile retail sales soared last month.

missymouse

my shares were free with savings, I did sell some about ten years' ago. I will hold on to them and see what happens as they are not costing me anything and i have not paid out.

on a downside i have an investment with them to pay part of my mortgage but that is another story.

earlgrey_3

aHullKingstonRover wrote: »

Presumably investors would receive very little in the way of cash but does anyone know how much would be paid per share "to sell your Rights and receive a payment?"

You'd get roughly the difference between the share price and the rights offer price (275p).

On Friday the shares go 'ex-rights' which means the rights and the shares are separated and can be traded independently. If you check on a stockbroker site on Friday you'll see the price offered for both i.e. your ex-right existing shares and your 'nil-paid new shares'.

You'll also notice the price of the HBOS ex-rights shares adjusted down by the value of the rights, if anything, because they won't have the benefit of the attached rights any more so don't be surprised. (All things being equal, the price of the shares + rights when separated will still be about the same as when they were traded together, i.e. 'c um-rights'.)

I see that HBOS is offering a free rights selling service. That's obviously because HBOS has a very high proportion of private investors and if they don't want to take up the rights it would help to get the rights into the hands of those who do as soon as they can rather than have shedloads on offer afterwards. If you have share certs you have until 18 July to decide which way the wind will blow. If you ignore the rights they'll be sold for you afterwards automatically. Good luck.

Banderman

missymouse wrote: »

my shares were free with savings, I did sell some about ten years' ago. I will hold on to them and see what happens as they are not costing me anything and i have not paid out.

on a downside i have an investment with them to pay part of my mortgage but that is another story.

It doesn't matter if you got them for free. The fact is they're worth something now but might not be worth alot in 6 months time.

earlgrey_3

Banderman wrote: »

It doesn't matter if you got them for free. The fact is they're worth something now but might not be worth alot in 6 months time.

Or still more important is what they're worth on the day she sells them. Yesterday someone was selling for 265p, today someone was buying for 291p. Both will be overwhelmingly professional fund managers, both with different views.

missymouse

no, but at least i did not have to pay out for them and they were a bonus. i would feel more fed up if i had actually bought them.

I am optimistic they may go up at some point even if not in the near future.

Banderman

The fact remains - just because the shares were free should not influence the decision of whether to sell them now or later.

also when N. Rock and B&B shares were going down the swanee people were saying they couldn't go any lower and would go up in the near future. They didn't.

missymouse

i suppose what influences me is whether i readily need the money from them at this point in time. Luckily i don't. I won't be selling at the moment.

in some ways i regret not selling them earlier in the year as i suspect many others do.

I don't see HBOS going the same way as NR and B&B but perhaps i am not clued up so i won't be offended if you contradict me

I am just glad i had a FD account and could secure a decent mortgage rate

hazadaza

ad44downey wrote: »

Exactly. The housing market is going into a downturn that's going to last at least several years and HBOS is the mortgage lender in the country. You don't have to be Warren Buffet to work out what's likely to happen to HBOS's share price in the future!

Forgive me if i'm wrong (i'm new) but it looks to me like if you would just stick around with HBOS for the next few years and sit out the slump in the market then surely you could be in for a nice surprise when confidence is restored and people go back to buy shares in HBOS!

esbo

earlgrey wrote: »

You'd get roughly the difference between the share price and the rights offer price (275p).

On Friday the shares go 'ex-rights' which means the rights and the shares are separated and can be traded independently. If you check on a stockbroker site on Friday you'll see the price offered for both i.e. your ex-right existing shares and your 'nil-paid new shares'.

You'll also notice the price of the HBOS ex-rights shares adjusted down by the value of the rights, if anything, because they won't have the benefit of the attached rights any more so don't be surprised. (All things being equal, the price of the shares + rights when separated will still be about the same as when they were traded together, i.e. 'c um-rights'.)

I see that HBOS is offering a free rights selling service. That's obviously because HBOS has a very high proportion of private investors and if they don't want to take up the rights it would help to get the rights into the hands of those who do as soon as they can rather than have shedloads on offer afterwards. If you have share certs you have until 18 July to decide which way the wind will blow. If you ignore the rights they'll be sold for you afterwards automatically. Good luck.

Thanks for that I sold my shares about a week ago and was not sure about the rights
bit. I tried looking at varioius new sites, BBC. Times etc..which supposedly explained the rights issue but none explained it fully. (maybe you should apply for a job with them!!).
Anyway HBOS shares have been looking more like 'wrongs' than 'rights' over the past few months. They may go back up but at least my money is safe now.