As the subject line says....
And I've done a quick google search but turned up nothing that would 
give me a clue as to the worth of the deal.
(And yes I've really not much idea what the deal is....   :-)
mikej

On 22 Jul, 12:38, Mike James  wrote:
> As the subject line says....
> And I've done a quick google search but turned up nothing that would
> give me a clue as to the worth of the deal.
> (And yes I've really not much idea what the deal is....   :-)
> mikej

If you take up a rights issue like this you are being asked to throw
good money after bad.

If you don't take it up you lose as well because either your
shareholding is diluted or it becomes crystal clear that it is
worthless.

There have been months of dire predictions about B&B - the only people
left holding shares (present company excepted of course) are the the
very lethargic and the terminally stupid.

The latter will take up the rights issue and the the former will sit
on their hands.

Troy Steadman wrote:
> 
> If you take up a rights issue like this you are being asked to throw
> good money after bad.
Ok that's clear enough...

> If you don't take it up you lose as well because either your
> shareholding is diluted or it becomes crystal clear that it is
> worthless.
> 
> There have been months of dire predictions about B&B - the only people
> left holding shares (present company excepted of course) are the the
> very lethargic and the terminally stupid.

er or a third possibility they didn't know they had any B&B shares until 
an email arrived to say would they like to take up the offer....
I can't even remember how or why I have ended up with them.

> The latter will take up the rights issue and the the former will sit
> on their hands.

Also presumably its too late to get rid of them....
mikej

The email that you received, I trust it didn't come from B & B.

"Mike James"  wrote in message 
news:lq-dndwjZK3hThjVnZ2dnUVZ8t_inZ2d@eclipse.net.uk...
| Troy Steadman wrote:
| >
| > If you take up a rights issue like this you are being asked to throw
| > good money after bad.
| Ok that's clear enough...
|
| > If you don't take it up you lose as well because either your
| > shareholding is diluted or it becomes crystal clear that it is
| > worthless.
| >
| > There have been months of dire predictions about B&B - the only people
| > left holding shares (present company excepted of course) are the the
| > very lethargic and the terminally stupid.
|
| er or a third possibility they didn't know they had any B&B shares until
| an email arrived to say would they like to take up the offer....
| I can't even remember how or why I have ended up with them.
|
| > The latter will take up the rights issue and the the former will sit
| > on their hands.
|
| Also presumably its too late to get rid of them....
| mikej

Stickems. wrote:
> The email that you received, I trust it didn't come from B & B.
> 
> 
er no it didn't - the shares were put with Hargreaves Landsdown for 
management (not by me) and they emailed.
Why would an email from BB be of any interest?
mikej

Because they would not have sent such an email.


"Mike James"  wrote in message 
news:DbGdndXofbAomBvVRVnyigA@eclipse.net.uk...
| Stickems. wrote:
| > The email that you received, I trust it didn't come from B & B.
| >
| >
| er no it didn't - the shares were put with Hargreaves Landsdown for
| management (not by me) and they emailed.
| Why would an email from BB be of any interest?
| mikej

Stickems. wrote:
> Because they would not have sent such an email.

Could you clarify & expand please.

Do you mean they wouldn't have informed the OP that either, he had shares
or that he was eligible for the rights issue?

Ta
Dave F.

Mike James wrote:

> As the subject line says....
> And I've done a quick google search but turned up nothing that would
> give me a clue as to the worth of the deal.
> (And yes I've really not much idea what the deal is....   :-)
> mikej

The rights issue lets you buy shares for 55p.  You can buy them on the
market for less than that, so it isn't a good deal.

Jonathan Bryce wrote:
> 
> The rights issue lets you buy shares for 55p.  You can buy them on the
> market for less than that, so it isn't a good deal.

That's what I first thought but wondered if there were any "hidden" 
perks. Clearly it really is this simple.
Thanks
mikej

Not by email.


"Dave F."  wrote in message 
news:W9idnQD6rrW50BvVnZ2dnUVZ8gOdnZ2d@brightview.com...
| Stickems. wrote:
| > Because they would not have sent such an email.
|
| Could you clarify & expand please.
|
| Do you mean they wouldn't have informed the OP that either, he had shares
| or that he was eligible for the rights issue?
|
| Ta
| Dave F.

>> The rights issue lets you buy shares for 55p.  You can buy them on the
>> market for less than that, so it isn't a good deal.

So "nil paid rights" have zero value too ???
I'll bet all the idiots that ran this bank had healthy bonus last
year.

Jonathan Bryce wrote:
> Mike James wrote:
> 
>> As the subject line says.... And I've done a quick google search but 
>> turned up nothing that would give me a clue as to the worth of the 
>> deal. (And yes I've really not much idea what the deal is....   :-) 
>> mikej
> 
> The rights issue lets you buy shares for 55p.  You can buy them on the 
> market for less than that, so it isn't a good deal.

They seem to be hovering around 55p at the moment.

Do I understand it right that, all things being equal, it would be better to
take up a rights issue at 55p rather than buy them on the open market for
55p, because the rights issue has very low (or zero?) commission and is free
of stamp duty?

I presume this is why, even at a share price of 55p, the nil paid rights
have a value greater than zero?

Reece

Reece Bythell wrote:

> They seem to be hovering around 55p at the moment.
> 
> Do I understand it right that, all things being equal, it would be better
> to take up a rights issue at 55p rather than buy them on the open market
> for 55p, because the rights issue has very low (or zero?) commission and
> is free of stamp duty?

Basically, yes.

> I presume this is why, even at a share price of 55p, the nil paid rights
> have a value greater than zero?

No.

To expose yourself to the movements in B&B shares, you have two options at
the moment.  You can either buy a share at 56p (correct at the time of
writing), or buy a nil paid right at 2.5p, and keep the rest of the money
in the bank.

If the share price falls to 30p at the date the rights are exercised, then
if you bought the share, you would lose 26p; whereas if you bought the
right, you would lose only 2.5p.  On the other hand, if the share price
rose to £1, you would gain 44p if you bought the share, or 42.5p if you
bought the right.  People are happy to take a small hit on the upside
potential gain in order to substantially limit the downside risk, so that
explains the rights price.  Or alternatively, you could put all 56p in B&B
rights and have a much bigger potential upside in exchange for a much
bigger risk of losing everything.

HBOS rights had a non-zero value even when the shares were below the rights
price, and this is the reason for it.