Lloyds TSB – Second Rights Issue
It will be the second time this year if the company has the go ahead to do another rights issue.
For those of you who don’t know, a rights issue is where a company will issue more shares into the market in order to raise more capital. In this case, Lloyds TSB needs to raise a substantial amount of money if it’s to opt out of the Bad Debt Scheme. It needs the money to pay a fee as well as neededing capital to improve it’s accounting books.
My Stance on this?
Now I’m very small when it comes to dealing in shares, I have lost money in cases and have earned money in other areas. Now when I heard about the potential rights issue I thought it’s my turn to get in on this. So I have purchased 634 Lloyds TSB shares so that when the time comes I’m going to be offered the new shares.
I think that in the Long-run the company will do very well and although I feel that HBOS was rubbish at the time when it was brought by Lloyds, I think that the increase in Market Share the both Businesses have now joined will come good in years to come.
If I get the opportunity to free up some money from other shares, I’ll have a punt and put some more into Lloyds.
I’ll post my calculations and working soon….
Current Share Price: 80.06p
- Potential of going as low as high 70s tomorrow….
