Member Info for Gerry557

Well there is still a little bit of time for confusion over the rights and for the prices to go to kilter. What price fall area would interest you.

I think I'd watch the buy yield to see if it gets over 7%. Still the underwriters must be happy paying a quid less per share. Currently nearly 70% profit and a 10% yield on the new shares so would be interesting to here from sellers.

What is the concern with JP Morgan and BOA

If you think the retracement is over done shouldn't you be buying more for when they kick back up

From the SSE trading update

"Generation output from SSE Renewables over the first nine months was 26% higher than the same period in prior year, reflecting the impact from capacity additions and weather conditions. January has seen the renewables fleet continue to experience periods of variable weather conditions. "

So Weather is still weathery but we have built more. Im not too sure how to read this across to UKW apart from the weathery bit

I note the price for the rights GB00BT3MB248 has dropped to 176. Is that because everyone is selling.

My instant profit from the top up is slowly draining away and I might end up underwater, puns intended. It's a bit ironic buying water shares when I have no water and a potential fix is being talked about in terms of weeks.

I still haven't got my head around the GB Energy thingy but thought buying some of these, UKW TRIG etc would be part of the plan maybe. Then again that sounds fairly logical so they will probably do something else completely.

M32

You might want to contact your broker and make your own arrangements and confirm what they would do

M32

If you let them lapse then they will be sold

Lapse - If you decide to take no action your Rights will expire or lapse after the Offer closes.

The Company will arrange for the shares that these Rights entitled you to buy to be offered for sale in the market. Any premium obtained above the Rights Issue price, less expenses, will then be paid to you. The total number of shares you will own will stay the same. However, the proportion of the company you own will reduce as more shares will be in issue.

Any rough ideas on what Pennon shares might trade at after rights issue on 18 Feb?

In theory it should make any difference to now as its fully underwritten. You might find there is a temporary dip in the SP as a few sell up to gain the instant profit and the underwriters try and offload any not taken up but it should soon return to normal.

MDEEBEE, you should be able to split the rights, buying those you want and selling those you dont. They were selling for under £2 though so dont expect to get the full price of 263p.

I don't know if this will continue to fall but with the possibility of BoE rate cuts this should start to pick up so I have added another tranche. 11% yield is toppy.

Just need Ed Milliband to try and "fix" green energy now

MDEEBEE

If you plan on taking up the rights then make sure you have your funds cleared by the date they specify. This is likely to be a couple of days earlier than the PNN prospectus.

My broker is midnight on the 11th oh and dont forget to click the accept which you can do earlier before funding if necessary.

The corporate action is now available and the "rights" are available to sell if you desire but the price is much less than you can buy them, which is to be expected.

I got my figures slightly wrong and maybe I dont lose out on part holdings so can get a few more shares than first thought. I have take up the rights.

MDEEBEE, you need to check where your shares are held, this will be your broker. They should provide you with your options via a corporate action. You have to decide if its right for you but as stated earlier you can get the shares on a discount and with a 10% yield. Unfortunately for this privilege your current shares have been devalued.

It's now up to the market to weigh up the value and there might be outside factors that play more on the SP than what pennon is doing. Trump, the markets and interest rates.

You still have the option to sell them all if you decide they are not for you. Still if everyone sells prices tend to fall. Hopefully my broker will provide details today.

MDEEBEE

You could do nothing and be diluted. I haven't seen the corporate action details yet but you might be able to sell the "rights" to offset the dilution and the dividend will be less going forward.

Take up the rights. You need the funds available to do this and room in the ISA if held in there. Currently a discount to the SP so instant profit and potential 10% dividend yield on those shares to offset the original rebased ones. This assumes you are happy with the plan going forward.

There might be an option to split and sell some and buy the rest. This might depend on your Broker and what they offer you as options. Some will allow "tail swallowing" selling some of your shares to buy the cheaper rights shares. Some do this if they dont have funds available or space in ISA.

Sometimes the rights issue causes the SP to drop towards the rights often when there is more time to the ex rights date or not underwritten so keep an eye out for a situation that might be beneficial. I suspect some of the bigger holders might have offloaded some shares to enable to buyback cheaper now its announced.

Im likely to take up the offer currently

Roy, I think you missed that I had my tongue in my cheek. It was more a comment regarding the distain of the board with regard to the private investors, many who might struggle to get further cash into their ISAs at the end of the tax year.

I suppose they could have waited a few more weeks so everyone has a new allowance but hay. Having experienced similar issues previously and the juggling of different shares to comply and take part, I dont know why it not a factor in the decision making.

The good news is the last trance are in profit :)

I wasn't planning on adding anymore of these just yet but like all plans, things change on contact. I didnt expect them dropping so close to the ex divi date in 10 days time.

Buy yield now back up to over 6% with the lower added inflation upgrades to be added. Im going to start adding again in tranches

Im so glad that they are doing this at the beginning of the tax year when everyone has spare room in their ISAs .......

The tax year starts 6 Feb right :(

It proposed a rights issue of 185.9 million new shares at 264p each, on the basis of 13 new shares for every 20 existing shares.

A rebased dividend. I cant see a figure but it looks like the same amount but over the increase in shares. What happened to the word "cut"

So looking at bit better now from the top up days on a current snap shot.

The increase in buybacks looks like it's gonna happen. Summer still a long way off but how times have changed in just a month. Doom and gloom swept away and replaced with more optimistic prospects. Still you pay a higher price for a rosy outlook.

So what about the next month?