ANYONE KNOW WHY THE ROYAL BANK OF SCOTLAND IS SHOWING A SHARE PRICE AROUND THE 6.59 MARK WHEN IT WAS 18.00 OR SO THE OTHER WEEK OR AM I GOING STRANGE?????????????

Todays Times says hold/sell.

Average of 9 brokers (I think) is average on Hemscott, i.e. a hold. Press comment in Times suggests that they would never have gone for this elvel of write-offs if it hadn't been a rights issue, i.e. taking the most pessimistic view of outcome. I suggest there should be a good buy opportunity once the rights issue is out of the way. Clearly, from values put on insurance investments, the sum of the parts is much greater than the whole. Back to the upper regions in two or three years time so it would buy and go away opportunity.

Eric

Its the same every day why do we bother..

Just to keep informed anyone interested.

The RBS document has arrived today.

Record date for Rights Issue entitlement is 9 May (so presumably already ex?)
Dealings in new shares, Nil Paid 15 May
Last date for payment for rights 6 June
Dealings in new shares fully paid 9 June

Bought some shares today @ 241p taking a longer term view. My guess is that advisers have allowed for extra funds when considering the size of the rights issue assuming that conditions may deteriorate further. Once the rump has been placed, the sp may stabilise but short term sentiment is also effected to a degree by the outcome of the insurance sale. This issue will strengthern the balance sheet and hopefully a new conservative approach to banking will ensue in future. Mr Goodwin will no doubt go in a year of so.

RBS extend deadline to sell insurance business looking increasingly desperate to raise capital.Perhaps seriously bad news on the cards?

who knows Halifax, perhaps due diligence takes longer or other party may enter at later date. Asset at end of the day is quality so if it is price that is the problem, then they will not sell it. Yes they would like the cash but, not at any price.

rbs will fall further on monday

"rbs will fall further on monday"

really highly intelligent comment based probably on your wind!

There is a deliberate attempt by the market to destroy the rights issue of not only RBS but also B&B by trying to drive down the sp to below the rights price. It won't work my friend because greed will get in the way. When you see the price down there you will be the first to buy.

i actually know something will happen with rbs on monday.

to be honest, its tempting to buy rbs already as it hit 224p today. so its hardly that far away from 2 quid.
b and b.....lol, now that is a shit share.

rbs is a quality bank and will be 4.50 quid in next year or so

If you're right, you're right.

I'm not posting my check till monday night so we will see.

Please don't tell me now it'll be Tuesday!

just post your cheque dealer......you wont lose from the right issues i'm sure

double bluff eh..

Interesting ...

RBS would tank below 200p by end of next month

A note of caution about the sp graph. The big daily form was, presumably, when the share went ex-rights. So, first, buyers acquire a smaller piece of the company; second, some buyers would go for the nil paid shares.

The news earlier in the week was that there would be six preliminary bids for the insurance holdings so if one drops out that is no big deal. Doubts also raised that sale wouild only bring in 5bill rather than 7bill; but that still looks a good sum when the holding cannot be that material to the share price in the first place.

Eric

My guess would be that the sp may fall towards say 220p, then we will see a rally on the back of institutional buying closer to the rights take up date, enabling the rights issue to get away with the rump placed. After that the sp may well decline but there must be many shorting this stock and I am not so sure they will continue to be a good short once the balance sheet has been strengtherned. Rbs have bitten the bullet and institutions I suspect are looking to replace the management at some stage. Perhaps Barc will then be the next in line to raise funds. The market remains a little suspicious about its position.

News today of another possible bidder pulling out:

"LONDON (Thomson Financial) - Chinese insurer Ping An dropped out of the bidding for Royal Bank of Scotland Plc's insurance business on Thursday, according to a report in the Independent.

Warren Buffet's Berkshire Hathaway Inc. and Italy's Assicurazioni Generali SpA have also pulled out of the bidding, which leaves five possible bidders: Zurich Financial Services, Allstate Corp, Travelers Co, American International Group and Germany's Allianz."

At last somebody talking some sense.

Agree with everything you say Guscavalier.

There are suggestions that the investment banks underwriting the rights issue have short positions to cover any "rump" of shares they may be left with when payment has been made by shareholders. If that is the case it is possible the sp will recover somewhat thereafter.

Yes, I heard that.