Lloyds Rights Issue

[emicen]

So Lloyds are planning a rights issue to raise extra capital. This I know and understand the allocation of 1.4 new shares per ordinary share held.

My question is, is this why the share price has nosedived in the last couple of weeks as the market prices in the new value of shares? (ie guestimates the value once your holding has been diluted) Or is it more to do with whats going on in Dubai?

(seems like Lloyds prices have tumbled more that the others in recent weeks)

[Zod]

your first thought is correct.


Read this if you feel inclined ot learn more

[emicen]

fesuvious said:

eerrmmm, planning?

Its happened chap. The shares went 'ex rights' Monday last week. The new shares come onto the market on Monday.

The Lloyds price hasn't dived as such. Its about 4p off where it should be.

Today, fears over Dubai and a rumour about RBS spooked the market

Yeah, I said planning since the closing date for applications is tomorrow, maybe "the rights issue is imminent" would have been a better choice of wording

I took up my allocation you see, but I'm not yet convinced about keeping it as a long hold.

[emicen]

I've got two blocks, effectively an inherited chunk and then some that I bought earlier this year.

Think I'm going to hold on to the extra ones that I've bought off the back of my own investment and just flip the ones off the back of the inheritance as soon as theres a decent enough percentage to be made.

[Rufus]

fesuvious said:

I took up all of mine.

In for the long haul

Here here! Fingers crossed hey.