Smith (ds) Share Discussion Threads

[losos] 13/7/2018 10:41

churchtower - Yes you have mentioned it :-) I do also agree with you, disasters can always strike but no investement in shares is ever 100% safe, I learned this a long time ago haha.

Phillis - Some of the discussion above have really covered the various options, my broker sent me an e-mail which made it all clear. Maybe some people didn't get such an e-mail from their broker or maybe they are still holding certificates. I was the same 30 years ago and living abroad and what with the delay in post and being 'new' I had to work it all out by myself.

Bscuit - Swallowing ones tail haha I did that once and for such a small holding I wondered after if it was worth it. I think you have a sizeable holding so probably different in your case.

[churchtower] 13/7/2018 09:24

Have taken up my full rights entitlement. Acknowledge that I have said this before but apologies for repeating once again that I regard this as one of the best medium to longer term investments presently available within the FTSE 250.

[bscuit] 12/7/2018 23:24

I am "swallowing my tail" - for practical reasons.

[phillis] 12/7/2018 22:09

They are not designed to confuse the average punter, but they clearly do!

[gettingrichslow] 12/7/2018 20:50

Phillis, they are definitely designed to confuse the average punter who, 7 or 8 times out of 10 thinks they are somehow missing out on a 'special offer' if they don't take up their rights. This board is no exception!

[phillis] 12/7/2018 15:53

why do people have such difficulty with rights issues?

[losos] 12/7/2018 10:25

Dogwalker - "In that case you could reasonably take up your rights , paying no fees, & hope it'll turn out that you've got them 'cheaply'"

Very eloquently put, (better than I could have done haha) there are several 'tactics' one could adopt with RI's but in this case I am doing the above, time will tell if it was a 'good move'

P.S. Like your user name, I'm a dogwalker too :-)

[typo56] 12/7/2018 09:17

No apologies required at all Dogwalker. You've put it more eloquently that I could have done.

I think this probably kicked-off when I said the cost of taking up your rights isn't just 350p, it's 350p plus the sum you could have received had you sold the rights or let them lapse. I've not been swayed from that view.

[dogwalker] 12/7/2018 09:08

Apologies to you then, Typo56, for mentioning you in my rant - saw your post above mine belatedly.

[dogwalker] 12/7/2018 09:05

The issue Typo56 is highlighting - I think -is that there are 2 variables ( the 'main shares' & 'rights' prices) you're trying to combine to get the best result ...for your decision. Taking a theoretical or systematic approach, there's no advantage to be had one way or the other when it comes to knowing whether to take up your 'rights' or not. However, there is - an advantage of sorts - when you take into account a) the difficulty in predicting the future on a day by day basis & whether to let rights lapse or to sell them or whatever, & b)any possible view you might have about how terrific the company is etc.,in which case you might reasonably think that the share price will do well once the issue is over. In that case you could reasonably take up your rights , paying no fees, & hope it'll turn out that you've got them 'cheaply', the question of 'timing' your purchase having been answered implicitly.

[typo56] 12/7/2018 08:54

Ex-rights from 10 July (Tuesday). Record dates aren't really relevant, especially if you have a nominee account - you never even receive the paperwork.

Think we've rather lost the original plot here. At least, I have!

[churchtower] 12/7/2018 08:36

Typo - Record Date for entitlements under the Rights Issue was 4.30pm 6th July 2018.

[typo56] 12/7/2018 08:06

Why do existing holders take a knock when buyers could still buy cum-rights on Monday, post 20ppps drop?

[bscuit] 11/7/2018 23:03

typo,

My view was it had dropped about 20ppps by the time of listing the rights.

[descartes244238] 11/7/2018 20:15

Seems this epic has been hi-jacked in the good ole US of A

[marksp2011] 11/7/2018 19:50

The only "benefit" to the RI should be the fact that the company can invest your money at a better rate of return than you can from an alternative investment. the company is getting "cheap" money that it invests to generate a return that leads to further growth or, a dividend flow.

[bscuit] 11/7/2018 12:20

Typo,

I was looking at the figures on a pure investment basis. How has the net value of my holding adjusted between the date prior to the announcement and now - all other things being equal? Just my way of looking at the benefits.

[bscuit] 11/7/2018 09:52

etome,

If you're still here. The link to the company site in the header appears to have been hijacked by a US company. I clicked to logon to the company site to check a detail and was puzzled.

Looks as if the reference to UK in the webpage address is erroneous -certainly now.

[losos] 11/7/2018 09:28

Typo56 - Ref post 2382 well luck or not you got it just about right :-)

Also I have to agree with you and others that these 'rights issues' are kind of 'swings & roundabouts' in that you could just buy in the market today at an equivalent price but I'm a tight git and don't like paying commission haha.

Good luck to all, let us hope it's onwards and upwards for SMDS :-)