Is This A Buy Yet??????????? @115p

I am hanging on a little longer

I reckon that, as it's already nudged above the 140 mark a couple of times in the past few days, it could well keep going up. I'm in this currently and will continue to hold.

the company has just been upgraded to 1.75p per share today. This is the reason for todays rise in price. the reason been the buy to let market has improved.

I hope you mean that to be 1.75 - or 175p Janet! Otherwise we're all done for!

it is 1.75

That's a relief, as I'm not into shorting!

114p now.

paragon was a firm buy with british bulls on friday at 1.20p

Managed to blag some pag at 60.25p, should I hold or sell?, dropping from 72p now

janetbennison
Are you still in.

Starting to look cheap, I think.

tempting ! 62 AT MO

so, whats the rights price..?

LONDON (Thomson Financial) - Buy-to-let lender Paragon Group of Companies said it is raising 287 mln stg through a deeply discounted rights issue in order to plug a funding gap left by the credit crunch.

Paragon, which lends to house buyers who aim to let out their properties, said the proceeds will be used to repay a 280 mln stg loan that falls due on Feb 27.

Under the terms of the rights issue, which has been fully underwritten by investment bank UBS, shareholders will be offered the opportunity to buy new shares in the group at an effective discount of 90.2 pct to its Jan 10 closing price of 102 pence.

Paragon, which relied entirely on the wholesale markets to finance its mortgage lending, has had problems raising funding since worries over rising defaults against US sub-prime mortgages prompted banks to largely suspend lending to each other in August last year.

'The board believes the rights issue will provide Paragon with a platform from which it can pursue further funding, so the company can return to writing significant volumes of profitable business when credit markets reopen,' Paragon chairman Robert Dench said in a statement.

so does it mean new shares will be 10p....? i don't get this..

I can’t get my head round this not holding so I’m not going to bother but on the other side they are saying this is expensive and should be @ 20p-30p some punters have lost a lot of money this morning there was sells of 100k earlier not nice to wake up to.

Missed the bounce, sold for small profit after costs, not worth the heart attack!!

At 55p 1 share gives you the right to buy 25 new ones at 10p I think ?? to early for me :)

Some stuff from the other side.





In your example your £1K bought you 1000 shares.

These will be consolidated on a 1 for 10 basis, so you will have 100 shares.

You will then be offered 5 new consolidated shares at £1 each for every 2 non-consolidated shares you currently hold (the 10p ones), you will therefore be offered 25000 new shares at £1 a piece. If you take up the full rights your holding will be 25100 consolidated shares at a cost of £26K. You would need the consoldated SP to rise to £1.036 to get your money back.

However, a £25K investment is a pretty sizeable committment if you only had £1K invested beforehand.


Davius is that right... its 25 share at 12p?



No, rights shares are effectively 10p per share, not 12p. They are priced at £1 per new share (a new share is 10 old shares consolidated).

And you don't have to find the money to take up the shares. You can sell your rights, assuming they have any value. But if the rights don't have any value, then PAG today doesn't have any value either!

Thanks Driver, I think I will stick with GCM :)