Member Info for PussyGalore

The buy price is but not the sell

IParsnip and do remember …. Just because you have the option to buy x amount of RI shares doesn’t mean you have to take them all… you can take a proportion without investing another penny… if you speak to your broker he will do this for you … that way you will still own the same proportion of the company that you did before.

IParsnip Personally I wouldn’t do nothing … if you do there’s a chance your RI will be worthless . You can buy a proportion of your RI by selling some and then using the proceeds to re purchase at the RI buy rate … you’d have to speak to your broker to do this but it means you don’t have to invest more cash , you’re just using what’s there already , It’s just another investment decision that’s all. But remember it’s only a loss once you sell … I too am looking at a paper loss of 70% and psychologically it’s very uncomfortable. However I believe Tui will come good in the future so I’m happy to stay invested . Personally I’m going to Tail Swallow a proportion of my shares so my investment is at a similar level as before.

iParsnip I understand your frustration you are sat looking at a big loss like everyone. It's currently a paper loss and is purely due to the RI. A lot of people are panicking and probably selling causing the volatility which always happens in this situation . Do Not panic... its a complicated process.

Once you sell your RI you can't buy them back. If you want to take them without investing more you have to Tail Swallow. To do this you have to phone your broker.

The ticker does give a buy price but when you click on deal... it only gives you an option to sell. The buy price is around 5.5 euros

I doubt that's correct. I'd call them to clarify. HL have told me they are at a fixed price of 5.55 euros and to keep approx £5.10 per share available

You either sell your RI and keep the cash if you feel the SP will fall below the current buy back price
Or you buy all you RI which means investing more
Or you Tail Swallow and sell a proportion in order to buy the rest taking your investment back to a similar proportion.

Thanks Hexam your advice has been very balanced and much appreciated, definitely time to take a break now. Tomorrows another day…. if in doubt do nowt … well until noon on the 11th anyway !

Hexam my head is spinning… probably like everyone else’s lol. I’ve just realised that theory wouldn’t work as you can only buy back what you’ve been issued. There really isn’t any clever way around this … think I’m going to stick to my plan and sell half my rights to purchase the other half. It’s such a bloody headache

HeadingNorth actually you're spot on, I've just worked out if I sell up totally plus tail swallow half my Rights I'll end up with 90 more shares than if I just Tail swallowed my rights

HL is by noon 11 April

That's a fair point however it depends on how much you are down from your initial investment. I'd gain a further 95 shares, they'd have to gain 70% for me to break even

Thanks Savage I hadn't taken that into consideration....this definitely feels like a game of Russian Roulette!!

Mikeln if you were to purchase all your rights you would be investing more money. If you just want to get back where you started I think the best option is Tail Swallowing, selling say half to buy back the other half. You will of course have less shares than you originally had but the value per share is more. Hope that makes sense

My Rights have just shown up and I've had an email from HL saying I can buy 826 shares at a cost of approx £5.10. If I don't want to buy them I can sell them and the price showing in my account to sell is £1.53 so the total value is £1268. I'm thinking the best option for me personally is to sell half and take up the rest which will be 248 shares to get me relatively back where I started. If I have understood correctly this is called Tail Swallowing

Hexham thank you I get it now. I suppose the decision I have to make now is do I want to invest more ?

Hexham thanks for the explanation… this one has had me scratching my head somewhat. So basically what you are saying is that we all have more shares but they aren’t yet showing in our broker accounts? I had 3000 then they became 300 …. Not sure how many I really have… it’s very confusing

Taken down on such low volume, lets hope the panic is now over!

HSBC to buy UK arm of Silicon Valley Bank https://www.bbc.co.uk/news/business-64937251