It seems to me that it is the right time to sell HBOS shares as I suspect they will fall when the new issue is taken up. Can someone please tell me if I am correct or not?

I don't know the exact terms of the new issue but I would imagine that the value of the shares before the issue, plus the value of the rights to the issue will equal the value of the shares after the issue. Of course, if sentiment changes, the value will change. Personally I would stay out of the banking sector but that's just my view. But for a long term, you could do lots worse.

As I understand it, the value of shares will go down as there will be more in circulation.

No non banking company could get away with a rights issue after messing up as badly as the banks have done without at least firing the culprits at board level, bringing in respected names and providing a credible plan for the future. More likely if the non bank was of value it would be the subject of a ‘cheap’ takeover/rescue bid. Banks, at present are not even allowed to consider anything because it could affect confidence so one is in the ludicrous position of being asked (or if you are an underwriter told) to support a management of proven incompetence. The value of their shares is therefore more technical than fundamental at the moment.

I used to be in stockbroking and know “The City” well BUT I wasn’t good on predicting short term movements in shares. Having given you the ‘health warning’ I imagine the market in bank shares/all shares will continue to be supported by the institutions for selfish/ indirect instruction reasons until the last bank rights issue is out of the way – it may or may not need continuing support. I suggest you keep an eye on the more respected share tipsters in the National papers with a view to considering jumping before the end, so to speak.

Help- to understand and any opinions?

I am a customer who was 'given' shares when Halifax Buidling Society went PLC. So.. not an expert and maybe should have sold them last year considering todays price.

Can anyone explain in Plain English what they are proposing?

1. To increase the companies authorised share captal and authorise the allotment of shares.

a) will i have to buy more shares? b) will the issue devalue my current shares

2. To disapply pre-emption rights?

a) what are pre-emption rights?, b) do they have the right to buy back my shares?

3. The Capitalisation Issue. To increase the Company authorised share capital, to capitalise reserves and to give the directors the authority to allot ordinary shares in lieu of dividend. (i understand the last part)

a) surely the first part is a repeat of this resolution is a repeat of the 1rst resolution?

Any opinions on these would resolutions would be helpful.

Thank you

As I said previously, the experts say that the value of the current shares will definitely be de-valued - not that that would make much difference with the price as they are currently!

"the experts say... " - where would we be without the "experts"?

Seriously if you ever hear anyone saying that a share will definitely be devalued, you can be sure that they are no expert.