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I haven't seen these levels in a while so certainly feels like it. If it does land today happy days, if not I suspect we'll get 5-10% days now until it does (especially with the current whispers going around) :) GLA
I got in last week at 1100p .. I wish I had considered the US selling off from 2pm to bring it down further, however still more than happy with my investment. As Rob says, the US impact today should have the opposite effect, so strap in guys :) big day today then a steady climb from then on IMO
Hi Hexam - I believe you're making a mistake in your calculations and hence why you believe my "£504" statement is misleading.
Whether you sell the rights or take them up, what you have in your pot is £850 worth of shares (which I think we've agreed on). So when you say "If you take the rights you invest £264 more and your new total of £1264 grows to £1564 an increase of £300." - This is incorrect, because you're adding the £264 additional investment to a pot worth £1000, not £850.
Again thanks for your answers gents - I will need to look into details about the rights issue being fully underwritten.
Coming back to one of my previous points though.. using your "£1000 worth of shares" example (as it's easy to follow) -
If you had £1000 in shares, these are now worth about £850. However, from what you've said you now have the following options:
1) Sell the rights and be paid £150, whilst simultaneously still holding £850 worth of shares, which were previously worth £1000 (purchased in my case at 330p – so lets say 303 shares now worth £850).
or
2) Take up the rights and purchase more shares at a fixed value of ~£1.83. So if you had £1000 worth of shares at 330p originally, the number of new shares you’re entitled to would be ((1000/3.3) / 21) x 10 = 144 shares. At the price of £1.83, this would require you to spend ~£264.
So if you sell the rights then I agree, you’re not really out of pocket and if you take up the rights, you haven’t gain anything, YET. However, the point I’m making is, if you’re investing at these levels because you believe in the company has potential upside from here, then (if you're right) you will get more from your money taking up the rights. Continuing with the two examples above, lets say the SP increases from current levels to 350p,
In example 1 above; your £850 investment is now worth £1060.5 (you were also compensated £150 from selling the rights, so you actually have £1210.5 in total).
In example 2 above; your investment is now worth £1564.5 (£504 of this is just from the new shares purchased at the lower price, and with further % increases in SP, the gains will become even wider from example 1).
So, if you’re invested here because you believe your investment will grow from these levels, then it seems to me taking up the rights clearly gets you more for your money?
Hi Beatrootjuice - If what you're saying is true, then I don't understand how TUI have raised the ~£1.1Bn by doing this? As that was the whole point of the rights issue, to raise the money.. If you're saying that they are simply giving existing investors the difference so they are not diluted, without putting hands in their pocket, then it doesn't make sense how they are raising any money with these new shares..?
Hi Hexam - Firstly, thank you for the feedback you give out to everyone. You've clearly a knowledgably investor, so the time you take to help out newer investors is appreciated.
I have a question on one of your statements - "So just be a little patient until the value of the rights does appear (if they haven't already)".
Is it not the case that in order to not be diluted, existing investors need to exercise their rights to the newer (cheaper) shares - and basically put their hand in their pocket? I don't understand how we will get value simply for our right.. if we do, is this in the form of cash, more shares etc?
FYI, I sold ~20% of my shares yesterday to enable myself the funds to purchase the cheaper shares I'm entitled to - From what you were saying yesterday, I understand you may think this was a pointless move, but I fully expect these shares to keep on climbing into next year, so "x" percentage increase on a lower entry position (~£1.83) will mean mean more profit than if I kept all my shares in at 330.
Many Thanks
Hi Hexam - Yes exactly. So if we know the share price will drop to ~280p in the next day and right now I'm not that much in the red (almost even), then surely sell and get a better position is a no brainer? Long term, I'm confident we'll see >£5 again, so not too much of a problem for me to stay invested, but as I say, surely it's a no brainer to get a lower position if we know it's going to drop, unless I'm overlooking something?
I'm not sure what you mean by the following though:
"If you buy back when the share drops to 280p (based on current sp holding firm) you are not getting the shares at a discount or bargain price as you are not getting the rights attaching instead you are paying the ex-rights price". - Maybe this is the gap in my understanding? If I change my entry position from ~330p to ~280p with no too much of a loss, then surely I would be getting discounted shares if I'm confident it'll go up again?
Can someone please explain to me what this means for the shares that I have? Basically I purchased around 2k shares at the beginning of last week for around 330p. So I'm not sure with this rights issue whether I'm better off selling these tomorrow and buying back in when the price drops to ~280p the following day, or whether it's better to keep hold of the shares that I have for some reason. Any explanation of this would be appreciated - thank you in advanced.
Very conservative, perhaps even pessimistic IMHO.. Likely just derived from a trend chart and not taking into consideration other factors (like you say, one being higher rent collection over next 12 months).
I believe we're significantly undervalued when looking at the long game.
This is completely anecdotal but from what I've witnessed myself, 90% of shops have been open since the new year. I went shopping in Milton Keynes a few weeks ago and it seemed all shops were open (or at least most) and it was very busy! (although footfall does not equal "££", which I've previously seen implied on here)..
Call me optimistic, but I think results will show a strong Q1 for rent collection. Perhaps not as normal pre-pandemic levels, but better than some are expecting.
https://simplywall.st/stocks/gb/real-estate/lse-hmso/hammerson-shares