What if HBOS Goes Ahead with a Right Issue?

Kaz64_2

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.

Same here..... If you don't need the money, just sit tight.

Banderman

Kaz64 wrote: »

Same here..... If you don't need the money, just sit tight.

Yeah, just sit tight and watch your investsment go down the toilet a la Northern Rock/Bradford and Bingley!

muymalestado

Banderman, and the other naysayers: listen to what is said - We got the shares for free! We did not invest! We are not on a hiding if things turn sour! We have enjoyed dividend income over the piece!

Now, though, there is a decision to make. Our money is being asked for. What should we do?

The naysayers are correct that the banking sector has managed itself abysmally. The banks position in our economy has allowed them to do that and return profits all the while.

The question before us is whether generally the sector will retain its position (unwarranted?) of trust and return profits in the future. Will there be good selling opportunities in the years ahead? And, of course will this single bank, HBOS, give shareholders continued dividends and a profitable exit point at a medium / long term point in the future?

Your bile might be interesting in small doses, but using solid information, hindsight and experience to make a judgement about the future is more important here.

ad44downey

Your shares are worth a certain amount now but may well be worth alot less in the near future. So it doesn't matter if you got the shares for free, you're still losing money if the share price goes kaput.

ianmr65

ianmr65 wrote: »

well i can't claim to have a crystal balll about these things or i'd be on one of my private islands calling the global stock markets on my laptop....

But if i had been holding HBOS shares, i would have sold them in march, as the writing was on the wall then, and they were at around 650p

The housing market has a long way to fall, in the UK, and HBOS have the worst exposure... i'm not at all sure they are going to come out of this intact,

If you compare them with B&B, who recently had a rights issue that failed their share price was 250p in march, and is now around 70p, and it looks like they are going to be taken over at a lower price even than that.

If HBOS suffers a similar reduction the shares would drop to around 150p, tho my guess would be closer to a 100p.

Still EG may be right, some bright spark could come in and turn them around...

80p at one point yesterday!, till the shotgun marriage that was no doubt arranged by Henk Paulson, & Ben Bernake* or one of thier teams, and blessed by Merv, and Gord.

*Before anyone starts jumping up and down, in the light of the $200bn liquidity push from the fed, boc, ecb, boe, boj, afr, ect... if anyone thinks that the fed, and the us treasury, are not calling all the shots at the moment, in the attempt to rescue western capitalism, they are seriously deluded.