HBOS shares

kate705

Set me free,
Hi, I don't want to be rude or argue with you at all but I am wondering how much you are adding here to the discussion. Some of your posts seem to imply that you are really enjoying this situation. I don't know your own position and perhaps you have every reason to feel angry at the capitalist system that we have. It may not be helping on this thread however......

setmefree

kate705 wrote: »

Set me free,
Hi, I don't want to be rude or argue with you at all but I am wondering how much you are adding here to the discussion. Some of your posts seem to imply that you are really enjoying this situation. I don't know your own position and perhaps you have every reason to feel angry at the capitalist system that we have. It may not be helping on this thread however......

Well thanks for that Kate,
Now bearing in mind that i started this thread,i would say my input has been the same all along..perhaps you would like to read the whole thread before passing remarks.;).
If you do not find my remarks helpful on this thread,perhaps you would care to start your own.
£80 Billion of public funds has been ploughed into the Banking Industry,and what benefits are we all seeing for it nothing, in fact it now makes you wonder how long the Industry would have survived without all that funding.
An average of 119 houses will be repossessed per day this year, Does the Banking Industry care about those who lose everything.NO.. they just say you knew the risks when you took out you mortgage.
On that principal,no one who buys shares at a reduced rate should be compensated if their Bank falls foul, after all they knew the risks of buying shares in an unstable market;)
So my point of posting the share prices is to make people aware of what is really going on,and not what the Banks would like you to believe:D

Shares now at 277.25

Banderman

cargo wrote: »

I defiantly will not sell my shares at this price,why would one?
.

Perhaps because they could fall another 50%?

I'd say there's quite a few people who wished they'd sold their Northern Rock shares when they were £9, £6, £3, £1, etc.....They thought they couldn't go any lower too but they most certainly did.

setmefree

Perhaps now kate you will see what i mean

under the new share price, shareholders would now have lost nearly 12p per share 263.75 :eek:

setmefree

Share price now 271.00...well that's the reduced share price gone out of the window, perhaps Kate you will now realise that i am actually helping people and not taking the p**s;)

wolseley_2

So, what effect does the market price dropping below the rights issue price have? Surely there is no point taking up the offer if you can buy the same amount of shares cheaper on the open market?

EDIT: Just noticed this (but they are not really saying much):

http://www.guardian.co.uk/business/2008/jun/11/hbosbusiness.creditcrunch

setmefree

wolseley wrote: »

So, what effect does the market price dropping below the rights issue price have? Surely there is no point taking up the offer if you can buy the same amount of shares cheaper on the open market?

Hooray,someone on the same wave length, more to the point why buy shares in the first place when there is so much uncertainty.

share price now 268.50

Also another thing to consider is this
The European Commission is to start disciplinary proceedings against the UK for breaching its economic rules.
It says Britain's budget deficit, the gap between its spending and its revenues, is growing too large.
The disciplinary proceedings are in effect a formal warning to curb borrowing, cut spending or both.

That's the end of Hand outs

cargo

Course not going to buy if price is below market value.
Houses are best thing to buy well below market value.
oops. Another can of worms.
Any way it is a long term thing and in my opinion they will be back up in the future, but that could be in the very long future.
It's a gamble "shares" just like the lotto,horses,dogs or what ever you care to bet on.
I do none of the above so this will be my flutter for the year.

Hundreds of others will do the same

ianmr65

wolseley wrote: »

So, what effect does the market price dropping below the rights issue price have? Surely there is no point taking up the offer if you can buy the same amount of shares cheaper on the open market?

EDIT: Just noticed this (but they are not really saying much):

http://www.guardian.co.uk/business/2008/jun/11/hbosbusiness.creditcrunch

Well the rights issue is fully underwritten... Morgan Stanley and Dresdner Kleinwort have guarenteed to buy the shares at 285p, if the shareholders don't take up the offer in full- a scenario which is highly likey - as unlike RBS - hbos are in serious trouble, with their balance sheet, distressed debt, liquidity ect.
However as with B & B it's highly unlikely that the HBOS board is gonna want the underwriting banks to take the hit, as they then become large shareholders who are rather !!!!!! off...as they have just lost a shed load of cash. so as with B & B expect the rights issue to be 're-structured' and the shares to be flogged off to an asset stripper. at well below market rate.

Thus depresssing the share price even more.. 90p per share, or whatever the distress price the shares end up as, after the restructure- like B&B who traded at a peak of 600p and are now about 60p.

the net effect of the drop below 285p is that HBOS is the latest casualty of the Uk sub prime crisis, and they have effectively gone bust. And the shareholders and staff will get it in the neck as the asset strippers , break the bank up, and flog it off.


NB don't expect to read anything as blunt as this in the FT, or the serious papers. Financial journalsists can effect share prices, and right issues, and have to be very circumspect in their reporting.

Old_Slaphead

looks like there are going to be some great savings rates likely to be offered soon in addition to bargain basement house prices.