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?????????????

I believe after the rights issue a fair valuation would work out at 270p range, please correct me if wrong.

RBS should be given credit for full disclosure; setting a benchmark for other banks.

Spitfire: at sp of 360p, price after dilution should be 18/29th*160+200, i.e. about 300p. The key question is what level the dividend will be set at. Any thoughts?

Eric

Whilst agreeing that they have probably now made full disclosure, just remember they said that last time.
Don't wish to keep repeating this but whilst some posts still appear to state beliefs re full honesty by RBS, it obviously still requires repeating.

I think Collins Stewart and another broker have said ex rights is 307p.

When you say divi, do you mean the next interims or do you still think they will change the full year in the next few days?

when is the last day you have to hold RBS to take advantage of rights issue.[has it gone?]

They haven't said. A prospectus to SH is being sent out early May.

thanks. looking for long term prospects and expect banks to go up ultimately so seems like a cheap way to build up a stake. this wont be without its pit falls especially short term so am wieghing up the risk in my own mind.

Anyone care to pass an opinion feel free and i shall use/ignore at MY own peril

Alex

agree with you. Surely once the credit crisis has passed there will be consolidation within the sector which will push up Bank's sp. Only my thoughts.

My 300p is projected price at current sp, down on the day so it ties up with Collins Stewart.

Clearly won't go ex-rights until after prospectus sent out; maybe mid-May. So buying now is with rights.

Greekman. Understandable viewpoint. But I think its fair to say that they are attempting to get all the bad news out of the way. I believe they will be given credit for that. Good too that they are selling the insurance activities (or some of them); the 4bill is better used in core business.

Current yield is around 9%. A lot depends on what dividend they are able to pay on increased capital. Even if same total, then yield only drops to 6%. I think they will bust a gut to increase it, the write-offs being taken as one-off. Really a buy at current levels, IMO, but there could still be a lot of volatility to come. I still think RBS are head and shoulders above Barclays, Lloyds TSB and HBOS, looking up only to HSBC.

I stand corrected, 307p would seem about right. Believe RBS have done the right thing in being first to announce rights issue, would expect Barclays and HBOS to follow. Must be best option rather than using BOE facilty, which if i understand correctly can't be used to offset all types of debt from overseas.

RNS released by RBS states 2007 final dividend will paid in cash subject to shareholders approval. As regards 2008 it is the intention to pay the interim dividend in shares and the final dividend in cash. Future dividends will reflect profits before exceptional provisions and gains made on sale of investments.

The best thing RBS have done is to beat their rivals to the punch. There will be several others beating a path to the rights issue door and the later they are the harder funding will be to obtain.

sometime in MAY.

My target is 150p within 12 months.

If we see 150p then we are in trouble, I certainly see more weakness ahead in the sector, but am I brave enough to go short. I will have to think about that.

It might happen spitfire if things turn really nasty and they issue a profit warning you just dont know today.

if they go ex-rights at some point in May, then would seem logical to hold off until a bit nearer the time. i assume they will announce a date with an RNS and i will have until the end of the day before that date to hold, in order to qualify for the rights issue. i think it may pay to hold off for a while longer as i think the SP will drift slightly lower. i know this runs the risk of missing the boat.
How is my logic?

i dont currently hold but am thinking about doing so
Alex

Good thinking Robert no point buying now wait till just before the right issue and that way you cut down the risk of losing money between now and the ex right date.

I'm with you Alex

I don't hold any RBS but am waiting for a pullback to take advantage of the rights issue, you can never be sure but I would think a good entry point would occur before they go ex rights.