Standard Life share offer ?

suicra05

I have been allocated approx 200 shares in the demutualisation offer. Should I a) keep the shares, b)take the cash or c) apply to buy additional shares. Will the share price appreciate long term?

slave1

appreciate thoughts on this also

okidoki987

Depends on your personal circumstances.
You will get the shares at a 5% discount (also up to extra 50,000 GBP).
That's a big plus.
Also if you hold the shares for a year you get a 5% bonus in shares as well.
Remember
You are getting the shares for nothing.
The shares will probably be oversubscribed.
You are getting a 5% discount on the issue price.

Then decide what you want to do with them.
It's unlikely they will go down seeing as they are a well extablished
insurance company (as opposed to a start up company).

Personal opinion
"Worth a punt but don't gamble with money you can't afford to lose!"

slave1

let me simplify my addon, I will not be selling my 211 "freebies"

What are thoughts on buying additional shares. Will the share price appreciate long term. This could be a good thread for combined thoughts.
Thinking of sticking €1-2k, not interested in the short term.

Hitchhiker's Guide to...

Historically new issues appreciate dramatically. And, in this case you are getting a discount. Definite buy imho (providing you don't have to borrow the money)

Cute Hoor

Just spotted this now.

Got a few freebies myself and bought some more, don't know how many yet.

This would appear to be good value, the discounted price for existing members was £2.185 compared to the £2.30 the institutions had to pay (5% discount), you will get one free share for every twenty you hold if you keep them for a year (another 5%), and a promised dividend of arounf 4%. Add to that the brokers fees & stamp duty (1 to 1.5%) you would have to pay if you bought on the open market, and you are getting a significant discount. Of course that does not stop them collapsing!

They closed at £2.425 today, an increase of 11% on the discounted issue price.

Good luck with them.

Sonnenblumen

True never borrow to invest-madman's folly. But apart from discounts the main appeal to me would be the EPS of 7:1, less than half industry average.

Sorry I'm not one of the lucky one's yet, but plan to buy shares. A no brainer and very good prospects for upside short-medium term.

Pile in!!

okidoki987

Closed today at 2.48 Sterling
but remember all the people who bought the discounted shares probably
still haven't got their forms off SL yet to allow them sell them so those shares haven't hit the market yet (if they are going to).
They should get them in the next few days and then it will be interesting to see what happens.

Hitchhiker's Guide to...

Sonnenblumen wrote:

True never borrow to invest-madman's folly. But apart from discounts the main appeal to me would be the EPS of 7:1, less than half industry average.

Sorry I'm not one of the lucky one's yet, but plan to buy shares. A no brainer and very good prospects for upside short-medium term.

Pile in!!

Lol - "pile in" is a very strong and emotive term, for what should be a purely financial-based decision.

New issues (IPOs) have almost always appreciated in their first few days (even Eircom), but tend to fall a bit after the excitment of their flotation fades off. There could be less interesting times ahead.

Sonnenblumen

Roundtower2 wrote:

Lol - "pile in" is a very strong and emotive term, for what should be a purely financial-based decision.

New issues (IPOs) have almost always appreciated in their first few days (even Eircom), but tend to fall a bit after the excitment of their flotation fades off. There could be less interesting times ahead.

Never paid for sex and never will! Making money is as good as sex, and sex is full of emotion! What do you want, a la carte guarantees, go to the post office?

As for IPO's I reckon you know little or nothing about them, and even less about financial stocks!!

Strong stuff- no way, Eircom as every sucker (sorry is that emotive also?) that participated knows too well, was a disaster. But hey you win some and lose them (like girlfriends). But give me one example of any IPO (financial) within the last 5, 10, 15 or even 20 years that has gone tits up (sorry is that another emotive term??)?

If Standard scares you, I'd go to mass, because science cannot help-get my drift (and there's no emotion here)??

Making money is real easy, making the decision is the hard bit!!

MortgageBrbr

Strong rumours these shares are going to plummit as soon as they go public....

Do believe they are still having trouble with accountancy practices and calculations....................

zokrez

MortgageBrbr wrote:

Strong rumours these shares are going to plummit as soon as they go public....

Do believe they are still having trouble with accountancy practices and calculations....................

I agree and I just had a sneaking feeling that times not a good and I never bought any - the first IPO I didn't buy !