What if HBOS Goes Ahead with a Right Issue?

ianmr65

Tozer wrote: »

Cosmic. Can I have yours?

barge-pole or HBOS rights... i have neither. though i understand there's gonna be a run on bargepoles, as the banking crisis in the uk gets worse... so i'm off to buy one now... i'll get two if you like... we can have one each.:beer:

Tozer

ianmr65 wrote: »

barge-pole or HBOS rights... i have neither. though i understand there's gonna be a run on bargepoles, as the banking crisis in the uk gets worse... so i'm off to buy one now... i'll get two if you like... we can have one each.:beer:

Nope. I was after the HBOS rights but thanks anyway.:j

ianmr65

Tozer wrote: »

The rights issue is going to do little for the share price in the long run - particularly considering that the banking sector is heavily undervalued at the moment - for obvious reasons.

Yes and the reasons are to do with lack of liquidity and great big holes in the balance sheets, due to sub-prime, and toxic derivative exposure.

Not sure how your research would have uncovered the extent, of this being as the banks are completly secrative about there exposure.

Tozer

ianmr65 wrote: »

Yes and the reasons are to do with lack of liquidity and great big holes in the balance sheets, due to sub-prime, and toxic derivative exposure.

Not sure how your research would have uncovered the extent, of this being as the banks are completly secrative about there exposure.

I don't think they are being secretive at all. It would be a corporate responsibility to announce to shareholders funding difficulties and to make provisions in their accounts.

I see the problems as short-term. In fact the BoE has said so much today.

purch

means they may might make demonstratably excellent financial advisors or brokers

:eek:

I will take the high ground and ignore this monstrous affront to my integrity :rotfl: :rotfl:

ad44downey

Tozer wrote: »

Rights issues generally don't have a huge affect per se on the share price. It is the rationale for the rights issue. I think HBOS are doing the prudent thing.

I suspect the share price will actually rise before the issue as the market takes on the shares before they come ex rights.

I'll be taking my full allocation, thats for sure.

Think about it.

After the rights issue you own the same proportion of the company as you did previously. But your bank account is several thousand pounds lighter! So you haven't gained anything as you have been deluded into thinking (by HBOS press statements probably), in reality you've lost big time.

ad44downey

Tozer wrote: »

I don't think they are being secretive at all. It would be a corporate responsibility to announce to shareholders funding difficulties and to make provisions in their accounts.

I see the problems as short-term. In fact the BoE has said so much today.

Haha. You'd believe anything

Only a few weeks ago HBOS and RBS increased their dividend payments and said there was no funding issues. Now they're asking the shareholders for billions of pounds.So you think they've been telling the truth then???

purch

and said there was no funding issues

They have no Funding Issues.......until the BOE 'HM Pawnbrokers to the Financial Markets' wants it's money back....and that day is sooner rather than later.

Tozer

ad44downey wrote: »

Haha. You'd believe anything

Only a few weeks ago HBOS and RBS increased their dividend payments and said there was no funding issues. Now they're asking the shareholders for billions of pounds.So you think they've been telling the truth then???

No I don't "believe anything". But I am agreeing to differ. I will take up the rights issue in full. I suspect I won't be alone.

ad44downey

You're a bank director's dream. You believe what they tell you even though they've been exposed as liars in recent weeks. And then they ask you for thousands of pounds to put right their mistakes, you don't even question it but practically throw the money at them! Unbelievable.