qatsi (qatsi) wrote,
qatsi
qatsi

Knowing your Rights

A small rainforest devoted to the HBOS rights issue arrived today.

I do find the whole principle rather astonishing, that an established business which has in essence burned its cash has the nerve to ask its investors for more. And that it will, in general, get it.

My shares are "windfall" shares from the original Halifax floatation. It's not quite that they are more trouble than they are worth (though who knows, it could end up that way), but I am disinclined to fund them any further. There is, however, a "tail swallow" option in which you sell sufficient rights to someone else in the market, in order to buy the remainder of your rights allocation, which sounds appealing. In the current climate, I can see that it's highly dependent on the share price whether the rights would sell at a notional profit or a loss, but it seems the best option to preserve the overall value of the holding in the increased share pool without digging into my pockets.
Tags: economy, money
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