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Thanks for taking the time to reply. So what are the rules to winning or loosing?
correction: ...On 17th-Sep it'd be worth £382 ( £336{HMON} + £42{HMSO} )
rooblertwo - re: "... dummies version of this or explain like I am a total..."
I'm not sure if my calcs are correct but here's my version on what's going on with value:
(assuming you had 1000 shares on 01-Sep, your position' value would be £500)
------------------------------------------------------------------------
Date....Multipl..Q_HMSO..Q_HMON..sp_HMSO..sp_HMON..£_HMSO..£_HMON..£_Total..Gain/Loss
01-Sep....x0...........1000...........0............50p..............0p...........£500............£0.........£500.............~
07-Sep....x5(o)........200...........0...........270p.............0p...........£540............£0.........£540.........+8.0%
17-Sep...x24(n)........200.......4800.........23p.............7p.............£46...........£336......£382.....-29.3%(-23.6%)
------------------------------------------------------------------------
On 17th-Sep it'd be worth £336
Nobody knows the end game in a short-term though, let's wait till the end of month to find out (after RI is over, additional liquidity/equity raised {nil shares paid}, final number of shares is known and market puts value on the company)
I'm not a holder, just keeping an eye on hmso, normal investment platform will give you value anyways (historic monthly/quarterly statements, current value {hmso+hmon} )
Looks like this is the best price for the selling the Rights IMO
If you cant take up the rights, nows a great time to well them
Can somebody link me to a dummies version of this or explain like I am a total muppet.
Yeah tail swallowing is one of the options with my broker. This is a route I will most likely take. Keeping a close eye on HMSO and HMON in meantime to see if I can flip over to HMSO myself.
Start of week HMON 7p a share and approx 3k in , so if it had remained at that would have got approx 20k HMSO shares... Now at 9p would translate to approx 25000 HMSO shares.
In simple terms, a HMON nil paid rights share can be 'upgraded' to an HMSO share by paying 15p. If you don't have the cash, you could sell some of your HMON shares to help fund it. People call this tail swallowing. I'm in no position to advise on whether or not this is the best thing to do in your circumstances.
Thanks Poleaxe. My broker's message was very vague. It mentions buy hammerson new ord shares but not the actual share abbr. I assumed HMSO. I will be opting for maximum shares I can send over. I'm happy holding for long period as this is only small percent of my portfolio. Just was hoping for stocks that didn't require such actions.
If you do nothing the HMON rights shares will laspe (these are the nil paid shares). As long as you hold them as shares (as opposed to spread bet / CFD) then in 2-3 weeks from now you should receive proceeds from the placing of the rights that weren't taken up (the 'rump'). You may well get a better price by selling them before then, but that depends on market movements.
Unless you act you will not receive any more HMSO shares, just this cash from the rump placing.
You really need to be getting proper guidance on this from your broker, not from weirdos on bulletin boards!
Will we be buying in HMSO at the 15p price of another stock. Cos as I have said I never purchased the HMON stock , this was a result of the split
Na just wonder if that's was what was as occuring. As I had invested in HMSO not HMON . The HMON shares were just generated in my account as a result of split and total my nil share allowance. AI can't take up the full amount cos it would take extra funds. All my question is , is as of 21st will these HMON shares be sold to buy new HMSO shares at 15p. Or am I missunderstanding the 15p opt price for nil shares.
Clearly somebody with an agenda!
Hi all, was wondering if anyone could just confirm my thoughts. I was holding approx 1000 shares in HMSO before the split. But know I have those shares but they are seriously low in value per share. I have since been given the HMON shares which I believe total my nil shares. I have four options to take before 21st of this month. I'm I right in thinking the HMON shares will disappear after this point and be sold out?
Can't afford to take up all these nil shares at this time cos it would cost me around 5k. So was going to opt option 4 and sell off shares in order to buy the nil shares at 15p per share. My main question is am I right in thinking if I opt to take option 4 will all my HMON shares be sold at their share price which is currently round 9p and will this total be used to buy HMSO shares at 15p each. If this is so I am happy ..please someone tell me if I'm correct
Hello Poleaxe and other investers,
Now I have
400 hmso *~25p=10000
9600 hmon*~8p=76800
If I dont buy nil paid rights how much will I have share of hmso after 25 of sep. And what do you guess how much approximately price share of hmso.
Thank you,
Market cap of the company today is:-
153m x HMSO +
3,678m x HMON
From 25th September (when the rights trade fully paid) it will be:-
3,831m x HMSO
buy 500 shares at 50p = £250 then 500/5=100 * 24=2400 shares at 15p=£360 so total cost 610 (x2.44 initial investment)
766,000,000 in issue today @ 384m mcap = 50p per share.
consolidation for nominal value reduction @ 5-1 to leaves 153,000,000 in issue = £2.50 a share.
153,000,000 x 24 RI shares = 3,672,000,000 new shares to issue
15p RI price x 3,672,000,000 = £550,800,000 cash raised
3,672,000,000 + 153,000,000 existing shares = 3,825,000,000 (total issue)
Which gives the company post todays MCAP price...
£384m existing MCAP + cash £550,800,000 = £934.8m
£934.8m / 3,825,000,000 = 24.4p per share.
clear as mud?
Correction, should have said sell rights at 12p this morning, not 28p.
It'll be the price the bookrunners manage to place the shares at, which is often the low end of the price traded in the market on the day, if not lower.
If you don't plan on taking up your rights you may be better off selling them if you see a good price (e.g. 28p this morning) rather than take your chances in the rump. IMO lapsing rights is a bit of a 'backstop' for people with small holdings and/or unable to act before then.
Just to Clarify,
Lets say HMSO trade at 25p on the 25th and you did not sell or exercise your rights, will you then receive 25p less 15p
more or less 10p per share (not taking in consideration other Costs)?
They'll be placed as HMSO shares on 25th Sept. Several days later you'll receive your proportion of the proceeds, less the 15p rights price and costs (which normally aren't huge).
What will happen after the 25th if you have not traded your nil trade shares ?(Please explain the Placing of the Rump?)
How is the price calculated if you do not take up the Rights or sell our rights, is it the Closing price of the HMSO (On the 25th) less the 10p Rights issue price less brokerage and fees?