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….

Related posts:

1. What is a rights issue? – effect on share price?
2. Would a Rights Issue Increase Share Value?
3. Speedy PLC – Rights Issue
4. Speedy PLC – How the Rights Issue Will affect Balance Sheet?
5. Are We Being Miss-Sold Speedy PLC Rights Issues?
6. Breaking Free from Toxic Asset Scheme
7. Speedy PLC – Slow Share Price Movement
8. Speedy PLC – Shares, What can be expected & Should I Buy?