What if HBOS Goes Ahead with a Right Issue?

esbo

hazadaza wrote: »

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!

On the other hand they might end up worthless, I was not happy that I knew enough
about their finiancial situation to know what to do so I sold at just over 300p.
I tired readinig their annual reports etc but I soon realised they were just financial gobbdegook.
I might as well have had my money on the 3.30 at Newmarket for all I knew, and I have as much
confidence in the financial pundits as I do in the tipsters in the horse racing section of the
sports papers. It's gambling not investing so I sold my allocation as I would not put that kind of money
on a horse.

stewartg83

Just sold all my HBOS shares.

I found out at the weekend that my parents signed over their shares to me when Halifax first became a bank so I had a look at their situation.

Looking at their stock chart Im pretty sure I would have sold out in Feb-07 had I known I held them. Having a basic knowledge of how rights-issues work I decided that it was best to sell out completely. It is unlikely that the share price is going to recover much above the issue price and in my opinion it is quite possible that their share price will continue to fall.

I have a limited knowledge of the property market but I would imagine it is unlikely to recover sufficiently to halt the decline of HBOs in the short term

Personally this was an easy decision as I had no knowledge of holding the shares in the first place and the cash is very welcome. Obvioulsy it is more difficult when you have decided not to sell during the last 18months while they have been falling.

Does anyone disagree with me and believe that HBOS can recover? Would be interested to hear thoughts

ad44downey

HBOS's share price has gone down the drain like most other banks although HBOs has been worse than most of the others. So you made a wise move. I can't see things getting better for them anytime soon as house price crash is still in its infancy.

agent_orange_2

stewartg83 wrote: »

Just sold all my HBOS shares.

I found out at the weekend that my parents signed over their shares to me when Halifax first became a bank so I had a look at their situation.

Looking at their stock chart Im pretty sure I would have sold out in Feb-07 had I known I held them. Having a basic knowledge of how rights-issues work I decided that it was best to sell out completely. It is unlikely that the share price is going to recover much above the issue price and in my opinion it is quite possible that their share price will continue to fall.

I have a limited knowledge of the property market but I would imagine it is unlikely to recover sufficiently to halt the decline of HBOs in the short term

Personally this was an easy decision as I had no knowledge of holding the shares in the first place and the cash is very welcome. Obvioulsy it is more difficult when you have decided not to sell during the last 18months while they have been falling.
Does anyone disagree with me and believe that HBOS can recover? Would be interested to hear thoughts

Well you can safely say you sold out nearer the bottom than the top. But there, at least they never cost you anything to begin with.

cookie_monster

Still got my shares, will hold onto to them. Got them for nothing so doesn't really bother me what they go for.

knights

cookie_monster wrote: »

Still got my shares, will hold onto to them. Got them for nothing so doesn't really bother me what they go for.

I am with you on this cookie monster.

Although I am still considering buying in to the rights issue because even at today’s close if you add the dealing costs there is little in it compared with £2.75.

However I don't need to make a final decision until next week and further drops may change my view obviously.

With regard to my general holding, fortunately I don't need the money at the moment so I won’t be selling. I may sell sometime over the next 10 years. I suspect there will be a selling opportunity or two in that time frame.

regards

digger-2004

Can somebody help me, i have a number of HBOS shares and i am being offered new shares through the rights issue. The price is £2.75, today the price is £2.63 (approx), i cannot believe anybody is going to take up the offer!. I am being thick or i am missing something.

Banderman

digger-2004 wrote: »

Can somebody help me, i have a number of HBOS shares and i am being offered new shares through the rights issue. The price is £2.75, today the price is £2.63 (approx), i cannot believe anybody is going to take up the offer!. I am being thick or i am missing something.

no you missed nowt. hbos have fooked up big style. Why anyone would want to invest more money in this shambles of an operation is beyond me.

linz76_2

Hi,

Im really confused about this Rights Issue.

Apologies if this is a really daft question but what is the difference between selling all your rights using the free dealing service (option 3) and doing nothing and the right lapsing on the 18th?

Sorry if this questions has alredy been asked before!

Exo

linz76 wrote: »

Hi,

what is the difference between selling all your rights using the free dealing service (option 3) and doing nothing and the right lapsing on the 18th?

Sorry if this questions has alredy been asked before!

To save me typing, this may help explain.
http://www.fool.co.uk/school/sharesexplained/rights-issues.aspx

At the moment, the offered rights issue shares have some value. Unfortunately, they have already dropped in value from around 21p to 7p each and may well drop further. Not great but at least they have a little value at present.
http://www.hbosplc.com/investors/detailedshareprice_npr.asp

If you do nothing, then HBOS will sell your offered rights issue shares at some point after 18th and you will receive the value of these if they are worth anything. Any value less than £5 goes to charity.

The HBOS rights issue has somewhat flopped.