Member Info for adeg1

LTI - the "chaos" will be caused by shareholders who don't know how the market works and who take no notice of the information available to them. All they do is look at their portfolios and pounds & pence they have lost or gained.

On Monday the trading platforms will show that you have made a loss on your investment and the general public will panic and I expect some will sell driving the price downwards.

Individuals are intelligent, but the general public is not.

I think the period to buy is from Monday when the chaos happens and before shareholders get their money later in the month.

Fully expect someone to come on here on Monday asking why their shares have disappeared and say that they are selling out because Aviva don't know what they are doing and are stealing money from them.

On the 16th of May I am expect to see that my 100 original AV shares have been replaced in my broker account with 76 new consolidated AV shares and 100 b shares @ 101.69p each. The B shares will then be sold back to Aviva on the 31st May and I will receive the cash to do with as I wish.

I will be able to trade in the new consolidated AV shares from the 16th and I may even be able to trade the B shares, if the MM's are willing, in order to release the cash earlier.

The gap between the 16th and the 31st is key and IMHO will provide the best buying opportunity as investors struggle to understand what has happened to their money and sell forcing the price down short term. But we will just have to wait and see.

Following these transactions, Mark Radcliffe holds 152,079,642 Ordinary Shares, representing approximately 46.78% of the Company's issued share capital.

No, they are not paying £5 per share.

Professional investors have paid £5.04 for 1 share and £1 for two warrants to purchase two more shares for free in the next 5 years. Therefore they have paid £6.04 for 3 shares, or £2.01333 per share.

yes they are privy to more information than us which is why I am happy to hold.

if you are confused you need to read up on something called efficient market hypothesis. The current information and dividend is already built into the price and has been since the first announcement was made. Share prices only really increase or decrease on new information and this is not new information.

The issue with your calculation is you assumed the share price was £4.20. The calculation only works at 75% if you assume the share price is £4.00. They will clarify the exact maths nearer the time.

Assuming all other things are equal the return of capital and the consolidation should leave you in exactly the same position as you are now, except you will have more cash and less shares.

good luck explaining that to the taxman, there will be a gain and you will need to pay capital gains tax on your gain unless you have it in a tax wrapper such as an ISA or a SIPP or it is under the tax free amount.

Not a muted reaction just already built into the price

It won't be £68 per share at to get to £1bn market cap we will require investment and that will dilute your shareholding. Don't get me wrong I still expect a good exit but it won't be at £68 a share.

The share buy back will have zero impact on the share price, do the maths assuming all other things remain the same. Increased future profits shared across less shares will increase the share price.

They paid 504p for 1 share plus 2 warrents at 50p each. So essentially they have paid 604p for 3 shares, so the price per share should be 201.33p.

The last investor paid 157p back in September so the investment price is gradually increasing.

price is up 6% on volume of 185k vs 900k plus for the last two days. Looks like they are short of shares to trade so will keep on rising.

But if the share buyback had not happened what would the shareprice now be? If they had paid a dividend of the same amount the market capitalisation would still be the same but with more shares in circulation so the share price would be even lower than it is.

Right the shareprice is below £4 so they just need to put an order in for 10 million shares at £3.95 into the market and lets get that average down below £4.

I hope not happy for this to drop to £3.50 so they can pick up loads more shares from this buy back at cheap prices and so I can pick up some more on the cheap next year.

They have an average buyback price of just under £4.02 which is a little disappointing when you look at the last 3 months share price chart and see how much of the time we were below that average.

No thank you, I am more than happy to keep picking these up at 377 myself. This is why you keep cash reserves in your account so you can take advantage of market overreactions.

Yes, the dividend is the big plus for me, as shareholders we need to benefit in this upturn in business. If the 72% increase feeds into the final one as well we are looking at a total dividend of 13.76p for the year a yield of 2.8% based on the current price, much better than before.

As a shareholder you benefit from a buy back as you now own more of the company so you get a larger share of the future profits and the assets. Usually this is insignificant as companies only buy back small percentages, but if a company bought back 50% of its shares, this would double your future dividend payments.

It isn't a saving to the company as I expect that the total dividend payment will remain the same but it will be shared across less shares. So we, the shareholders, benefit with increased dividends per share.