HBOS Rights Issue

missymouse

i still don't quite understand the tail swallow. Do you sell some of your shares and buy these new ones so you don't pay anything out. If so do you start with the same amount of shares again. could someone please explain.

I too have the right thing of 44 shares and currently own about 120 i think

thanks

earlgrey_3

Unless your shares are in an ISA which is already fully invested or possibly if you have vast number of shares then you don't need to worry about tail swallowing.

The only thing you need to worry about is whether you think HBOS shares are a good investment at 275p and want to invest more, in which case take up the rights, or you want to reduce your investment, in which case sell the rights (or let them lapse and have them sold automatically).

If you sell the rights then your investment will have reduced by about the amount you get for the rights, if anything.

The other option is to dump all your shares. The shares go ex-rights tomorrow, 27 June.

ad44downey

If you want a gamble, buy a lottery ticket, it's lots more fun.

earlgrey_3

ad44downey wrote: »

If you want a gamble, buy a lottery ticket, it's lots more fun.

"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor - the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know." William Bernstein

Which one are you?

napoleon

How low do these turkeys have to go before people realise it's time to get to **** out!!

earlgrey_3

napoleon wrote: »

How low do these turkeys have to go before people realise it's time to get to **** out!!

Depends. W S Atkins fell from 670p to 68p within a couple of months before some people got to **** out. Unfortunately for them it closed tonight at 1051p. With your crystal ball guess you knew that would happen.

TRUSt_NO_1_2

Tim Awfully Rich told me to buy bank stocks,as the worst is over,and the economy is improving.
Inflation now 3% will fall to 2%.
I tried to phone him,but he was in the Caymen Islands on some sort of business,and could not be reached.
If Tim says it,that's good enough for me.

napoleon

earlgrey wrote: »

Depends. W S Atkins fell from 670p to 68p within a couple of months before some people got to **** out. Unfortunately for them it closed tonight at 1051p. With your crystal ball guess you knew that would happen.

I just hope you weren't saying the same thing when Northern Rock and Bradford and Bingley were going down the swanee!!

ad44downey

napoleon wrote: »

How low do these turkeys have to go before people realise it's time to get to **** out!!

This is the bluntest yet most insightful comment I've read on these forums for quite some time.