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Hi,
Your £4000 investment is reduced by the £2450 dividend payout and so it has now cost you £1500 to buy 500 shares... ie £3 per share
Hello
I am quite new to this consolidation stuff. So if I am getting this right if one has 10,000 shares, the current holding value would be around £4k. The dividend payment will be £2450, so far so good. However, based on this consolidation process the new shares will amount to 500 (10000/20). What would be the value of the new share after consolidation? In this scenario it must be at least around £8 per share or am I missing something her? Would appreciate some advice on this. Thanks.
Sorry, I understand.. net.. ie 24.5p (490p in consolidation)per dividend probable reduction in SP. Apologies
How is tye 305 mentioned calculated please... I am really confused..
If share price is say 39p and consolidation 1 for 20, why would not 1 share be worth 780p? Ie 20 X 39p
Thanks AngelsOneFive,
Tax should be ok as its in a SIPP with HL.
I was massively concerned that the shares would also drop at xd by the divi amount as well as the consolidation of shares. If it does move to over c 305, it'll be breakeven.
Cheers
Hi, if you read the RNS from 5th April, you will understand better. You’ve already bought your shares. Once market closes on 22nd you lock in your entitlement to 24.5p for each current share. At markets open on 23rd the number of shares you hold will have been reduced x20. eg, if was 1000 shares now will be 50, but you’re still getting the 24.5p divi based on your 1000 shares. Hopefully you’re holding PINE in a tax wrapper otherwise the jumbo divi might incur a tax liability at year end.
The assumption is that net of the dividend the share price will multiply by x20 as well, so somewhere up around 305p based on today’s close. atb
New to all this and have just bought in based off the SD being issued, however also read that there will be a 1 for 20 share consolidation happening. Not sure when - before or after XD date - but would like to hear about what impact this will have post XD / Consol date(s). Anyone have an understanding of this and offer comments please?
Hopefully not regret the impulse buy.
Lithia's revised proposal provides shareholders with a total value per ordinary share comprising: (i) expected 24.5 pence in cash, to be received by way of a dividend; (ii) a retained c.83.3 per cent. ownership in the continuing Pendragon business (including Pinewood) valued initially at c.10.3 pence per share; and (iii) an indirect interest in the North American joint venture valued initially at c.0.6 pence per ordinary share.
In aggregate, it's the equivalent of a 35.4p per share offer, and thereby outbidding the Penske/Hedin 32p per share bid.
Pleased that 24.5p divided is likely to be paid on 7th May following AGM. Aim is also to consolidaste one new share for every 20 shares.
Deal agreed, stated equivalent to 35.4p. Any news/ideas when points (ii) and (iii) as above will be actioned to make up remaining 10.9p per share??
I just looked up the UK tax free dividend allowance on HMRC.
Amazed to see it’s now only £500 per year.
Above this the tax kicks in.
It’s 33.75% for a higher rate earner. Ouch.
Hopefully most have theirs in an ISA or SIPP.
atb
Well if there’s a good increase before 22nd 6pm I’m out, forfeiting divi.
I’m pleased to say that mine are in a tax wrapper, otherwise I’d be staying out until after the xd date. I’m interpreting the “special” dividend designation as signifying its one-off nature. Otherwise it would make it appear as having a >60% yield. atb
Don't understand the special dividend meaning, they sold part of the business and the payment is the proceeds of the sale, share price will reflect that.
Not just any old Divi but a stinking 24 p a share mate!
RNS today.
Divi to be paid May 7th
RNS today.
Divi to be paid May 7th
I’d really like to have sight of this promised 24p/share payout from the Pendragon car business sale. I don’t have the exact date when the sale completed as all the PDG RNS’s have disappeared from LSE since the ticker changed to PINE, but it must be at least 6 weeks now. It’s a bit frustrating.
Trades after time are they buys or sells any one know what's going on
Massive trading after hours anyone know whats driving this
Lots of big value trades today think more sells than buys is something happening in the background must be news coming soon
Definitely not putting the buyers off, lot more buying than selling, haven't heard any news 1 buy 50k so someone confident
Anyone buying now is basically having to stump up the equivalent of 24p per share to cover the future payout from the car dealership sale (of 24p). That’s a bit of a pain. When the payout is announced and then goes XD I wouldn’t be at all surprised if the SP falls by less than the 24p as an investment in PINE will be a much cleaner option. atb
Enjoying the rise in SP last few days any one know what's driving this when do we get paid from pdg sale
I have been watching this share with interest as I have been involved in the Automotive industry for over 20 years. The Pinewood DMS is best in market (I have reviewed DMS products for clients and it consistently scores top). The link posted by Angels below from Oak Bloke gives a pretty good summary. It is a no brainer, Lithia who are the new JV partner are the biggest US dealer group so they are gong to sign up all their dealers to the Pinewood product. Lithia have quite an aggressive acquisition strategy, so as they continue to acquire groups they will also sign them up to the Pinewood DMS
The PDG car business sale already completed and I’m assuming PINE (formerly PDG) is currently sitting on the cash awaiting distribution. You will notice a big fall in the share price at ex-dividend date whenever that happens. We will get an advance RNS from PINE with the date. PINE is essentially already trading as a software only business, because the car business is already sold. Hopefully was sold along with any possible liability to mis-sold car loans, should that turn out to be a developing problem.
atb
Maybe the cash was from divis elsewhere??