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Poleax much clearer now thank you for your help on this, seems right s ssue are like you said give with one hand and take with the other. This for me now is the long game. I guess the safe bet was to check out last week at 68.
Well said Poleaxe.
Another nice clear explanation.
I'll know where to come, when i'm not understanding something!
I'm sure that you provide useful help to many.
RRN are the nil paid rights. They trade at 32p below RR. If you're only taking up the rights with the intention of immediately selling to "take a profit" you might as well sell the RRN now.
If I understand him correctly then RRN is diiference between current share price and Nil paid rights, so you can sell these for 39p and pocket the money or alternatively can exercise right to buy shares for 32 and sell it for 71 to pocket 39p difference.Either way it is same , a simple thing he is trying to overcomplicate.
Keepcalmncarryon, sounds like you originally had 1,260 shares at 238p = £3k worth.
You've now received your rights. You got these in the form of nil paid rights shares. As these were issued in the ratio 10 for 3 you've received 4,200 nil paid rights shares.
These shares are tradable under the RRN ticker. If you wish you can sell them on the market. At close yesterday they were priced at 39p. Alternately you can pay an extra 32p to convert them to fully paid RR. shares. You're not really buying RR. shares for only 32p because you already own the the value of the RR. shares, less 32p.
You're down because Rolls-Royce is not valued as highly as when you bought the shares. That's tough. That's the investment risk you took. Taking up the rights will only help you to get your money back if the share price rises. If it stays where it is, you'll be no better off. If it goes down further you'll be worse off through taking up the rights.
No-one can say for sure where the share price is going from here. IMO it could easily halve or double in the coming weeks, perhaps both. It's your call.
Shares 1260 4200 5460
sp 2.3 0.32 0.71
£ 2898 1344 4242 3876.6
loss -365.4
Hi Poleaxe yes this rights issue just isn't making sense to me I guess. I have 4200 currently valued at 0.39 does this include the 3 for 10 at this point? If I sell the rights now at 0.39 I will have lost approx 20% of my original value, original value £3K. So 2 pots now exist original pot £3k now £800 pot 2 RI £1600. Phone HL but useful info was lacking.
I suppose it's the number of Rights Issue shares you was allocated ? 32p =£225 so must have got a lot of RI shares for that amount of money?
Does anyone know if the shares in issue now already includes the RI shares? Thanks
OK, I got it, 225 pounds for 32p each share. sorry for mis-understanding the broker's note. I guess most of people will take the RI offer.
I got confused, why my broker said it will cost 225p to take right issue shares instead of 32p? the 225p is highly above 70p on the market. could you or someone explain this out ? if the market is 70p, what is the point to buy right issue shares with 225p ?
Thanks.
Keepcalmncarryon, you've still not got it have you?
Instead of paying 32p to take up the rights in order to sell for 70p you could simply sell the rights.
Have a look in your account. You should see your nil paid rights shares. They should be valued at 39p. Why would you want to pay another 32p in order to sell your fully paid rights at 70p? Why not just sell them now, nil paid, for 39p?
Take up the rights if you think the shares are a good investment, not because you think paying 32p for them is going to give you a nice quick earner. It doesn't, because you're throwing away what you could have otherwise got selling the rights.
Yes guess so, I'll look to regain on the 10 for 3 if the price stays around 70 could be a nice little earner.
So I had £3k in shares the rights issues went through and within 2 days my £3k was worth 2.3k at this point I have existed no rights. Is this supposed to happen the only way I see recovering some losses is to buy more share 10 for 3 to recoup some back. Feels like well ive been shafted. Any advice.