What if HBOS Goes Ahead with a Right Issue?

missymouse

so really the message is sit back and do nothing because there is no point buying shares which are no cheaper than on the stock exchange and to keep our money.

I hope they will go up again too as we all do. Perhaps we should have all sold last year. It is a bit of a bummer

earlgrey_3

ianmr65 wrote: »

Good Posts EG!! I'd put money on HSBC coming out of this even higher up the food chain than they are now. They've been consistantly bullish throughout, and were the only bank that spoke out against the BoE liquidity measures... Sounded like they were positivley keen for some competitors to go to the wall!!.

I suspect you could be right.

The biggest gains though could come from the unlikeliest candidates, today's down and outs who boot out their current execs and find a fresh face who really takes them places. Plenty of down and outs to choose from.

ad44downey

vido wrote: »

yea - a total bummer - but they WILL go back up (I hope!). You've just got to BELIEVE

Oh errrr...... remember Northern Rock , or Bradford and Bingley even.....

ianmr65

missymouse wrote: »

so really the message is sit back and do nothing because there is no point buying shares which are no cheaper than on the stock exchange and to keep our money.

I hope they will go up again too as we all do. Perhaps we should have all sold last year. It is a bit of a bummer

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...

helensb

missymouse wrote: »

yes something girl. That is my query too. Did you get something in the post about this before today. I had a clear out last week but i am sure it was only general AGM stuff.

I am also concerned that if i do nothing i am losing out. I have been given 44 shares to buy but i am not sure i want to spend out on them

somebody please help

There was a mailing last week (or so) with a voting form to say whether you agreed with the Rights Issue, or not, and whether you agree that they don't pay you a dividend next year. (There were three questions, but I don't remember what the other one was). I voted NO to all the questions.

ad44downey

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...

As you say there's a good chance the share price will drop below 100 pence and then someone will take pity on them and buy them for a pittance.

I can't believe people aren't selling them in the hope they'll go back up again. Don't they remember Northern rock? It weren't that long ago! :eek:

earlgrey_3

ad44downey wrote: »

Don't they remember Northern rock? It weren't that long ago! :eek:

If stock picking was as easy as just comparing what happened to another company in totally different circumstances for totally different reasons then shoeshine boys would be as rich as Warren Buffett.

Doesn't look exactly rosy but what investors in HBOS need to do is decide whether they are still a good investment at the price they can now sell at. They shouldn't hold because they paid more, better to forget that, or sell because every shoeshine boy recommends them to.

aHullKingstonRover

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?"

Banderman

At the moment, zilch - The rights issue has flopped. Trust HBOS to !!!! it up.

TRUSt_NO_1_2

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!

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 !

The UK government is already running on empty...so where are the bail outs coming from ?

BUY SHARES IN HBOS...?
TOZER IS...THAT'S ONE...ANY MORE VOLUNTEERS ?