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driftking, thanks for the comments and agree commodities are volatile hence I'm only investing 3% - 4% in this stock...but I also hold some Rio and have been adding to RDSB. If BLT starts to go badly wrong I'll cut losses early and can use same against CGT. Assuming dividend can be maintained dollar strengthening lifts payouts in sterling. I'd be interested to check the Times article if you can retrieve link - currently Digital Look shows the analysts' consensus that dividend would be raised a little next year (although the EPS predictions show it as becoming uncovered). I understand that BLT is more affected by the oil price than RIO and my feeling is that the oil price will recover further within a 12 - 24 month timeframe as the large scale stacking of land rigs in US will soon impact shale oil flowrates given that tight oil is subject to very high decline rates.
Bought 1st tranch when my limit of 1325p was hit this morning; plan to add more shortly.
I held BLT when price was around £20 last year and took a small loss when they headed down to £19 (a wise move in hindsight). Looking to buy back in shortly as, just maybe, they've found a bottom; in any event yield is now attractive.
wobo, the dilution due to the RI is already factored in the share price; future price movements will be determined by market sentiment, RSA / Insurance sector news etc and not by the RI itself. Having said that following a RI price can move lower if a substantial overhang of the new shares has been left with the underwriters - unlikley to be an issue in this case as there's over a 30p premium on the nil paid rights. I can't offer advice as to whether to take the loss or to hold on; you need to do your own research and decide what works best for you. If you've exceeded your CGT allowance in the current tax year it might be worth taking the loss by Friday close this week in order to reduce your tax liability.
wobo, the ex-rights date has passed therefore you can sell your nil paid rights, your original holding (or both) without affecting your entitlement to the 3375 nil paid rights.
I manage a relative's investments which includes RSA. We've added the necessary funds to her dealing account and changed the default option (which is decline) to accept. Funds have not yet been debited but they should be upon expiry of the 'take up' deadline. Once the RI is out of the way and any overhang left with the underwriters is cleared the SP may well advance a little. My relative will probably still be left with a small loss due mainly to a small percentage of her RSA holding being inherited some years back when price was over £3 - we can then decide whether to hold on or take a modest loss which will mitigate CGT on her other holdings.
I'd been watching AZN for some time as a relative inherited a few AZN shares some time ago and asked me to help sort out this investment. As far as I was concerned I was looking for FTSE100 stocks paying good dividends and took more notice following the DT Questor article in December. There was clearly an uptrend is this stock which started a few months earlier and I now try to buy stocks which are rising rather than to attempt 'bottom fishing' which more often than not turns out to be 'catching a falling knife'. Dividend yield apart the long term fundamentals for pharmas look good with ageing demographics and rising afluence in Asia etc. The yield was around 5% in December, now reduced to 4.2% following the recent price hike. It's always good if one can purchase a stock which has been out of favour for a while as once sentiment changes the price can adjust quite quickly as we've seen with this stock recently (and are maybe starting to see with RDSB as another example). Anyway I bought AZN in December and am very glad that I did and plan to hold for some time especially given that I've ran up a sizeable CGT liability were I to sell now. The other issue which may help the price of high yielding quality stocks over the next few months is the amount of funds effectively being injected into the UK market by the Vodafone / Verizon deal. Press reports suggest a figure of at least £20bn; even working on 35% of Vodafone stock held by UK residents / institutions the amount being returned is £18bn. VOD shareholders have been used to a very generous dividend yield and the only realistic alternative in the Telecomms sector, BT, currently has a yield around half that of VOD. On this basis many analysts suggest that stocks such as AZN, GSK, RDSB etc will be targeted by investors wanting to find a home for their Verizon cash. With regard to the timing of the funds being returned, 71% will be in investors' accounts on Monday Feb 24 when the Verizon stock (in CDI format) will be deposited and be available for selling via the UK market. The remaining 29% will be paid in the form of cash dividends and deposited to investors' bank accounts on March 04. Some of the recent FTSE100 rally may be as a result of this return of cash being anticipated and it will be interesting to see what impact there is on the price of AZN and others when the funds are actually available over the next couple of weeks. It should, at least, provide some kind of support following the recent rally as there are no realistic options for decent rates by placing the funds on deposit.