B&B Rights issue.. take up the offer ?

Oblivion

bristolleedsfan wrote: »

Bottom share price level is Zero according to this.

http://www.ifaonline.co.uk/public/showPage.html?page=ifa2006_articleimport&tempPageName=803226

Seems it's worse than that. According to that article, Pali International calculate that B&Bs 'net present value' is minus 14p. Oh deary deary me.

Dave.

Masomnia

Trying to recover at around 35p, we'll have to see what they come up with at this meeting on the 17th...

jamie304

"The slide follows a wave of investor concerns yesterday, after Pali International, a stockbroker, cut its target price for the bank to 'zero' and calculated B&B's "net present value" to be -14p. In a separate note, banking specialist Fox-Pitt, Kelton said: 'We cannot rule out the possibility of an effective failure with shareholders receiving little or nothing for their shares.'"


http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/07/08/bcnbrad108.xml

ad44downey

Bradford and Bingley is just about to go the way of Northern Rock. All those buy to letters will mourn its passing I'm sure. :rolleyes:

greco_2

Meanwhile, A&L shares are taking a pasting too.

ad44downey

Total carnage. Bradford and Bingley shares finish down 18% today.

Oblivion

ad44downey wrote: »

Total carnage. Bradford and Bingley shares finish down 18% today.

I wonder how long it will be before dealing is suspended on the stock market.

Dave.

ad44downey

The government and/or other banks will have to step in very soon. If they delay much longer there'll be long queues outside their branches like there was with Northern Rock.

6022tivo

I still have my 250 shares, and am proud of them.

The balance sheets are nothing like Northern Rocks, and nor is the business model..

The -14p is just someone wanting them on the cheap..

I say BUY BUY BUY now at that price..

Or maybe take professional advice.

Masomnia

There won't be queues for some time yet, if at all, because the media has been a lot more sensible about its reporting of B & B then it was with Northern Rock.

Other banks have stepped in. Citigroup and UBS are underwriting the rights issue, Barclays, HBOS, HSBC, Lloyds TSB and RBS are also supporting it.

The situation is clearly not as bad as NR. If you got those 250 shares free when they demutualized, then I wouldn't think they'd be worth selling.