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How Long Before Rbs Is Kicked Out Of The Ftse?

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Just done the numbers on the back of a fag pack..At around £ 5 a share in 12/2007, the market cap of RBS was around £ 44.5 billion. At the current price of around 11p a share, that would have dropped to under £ 1 billion. How long would it take before the company is kicked out of the FTSE? The exit of the 5th largest bank in the world from the FTSE would be an Enron like moment and would send other banking shares into a death spiral..

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Just done the numbers on the back of a fag pack..At around £ 5 a share in 12/2007, the market cap of RBS was around £ 44.5 billion. At the current price of around 11p a share, that would have dropped to under £ 1 billion. How long would it take before the company is kicked out of the FTSE? The exit of the 5th largest bank in the world from the FTSE would be an Enron like moment and would send other banking shares into a death spiral..

Next quarterly review in March, I believe.

RW

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Just done the numbers on the back of a fag pack..At around £ 5 a share in 12/2007, the market cap of RBS was around £ 44.5 billion. At the current price of around 11p a share, that would have dropped to under £ 1 billion. How long would it take before the company is kicked out of the FTSE? The exit of the 5th largest bank in the world from the FTSE would be an Enron like moment and would send other banking shares into a death spiral..

Hasn't the number of shares increased though since then?

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Shares Outstanding: 39,456,004,899

Closing price was 11.60 p

So cap was approx. £4.56 billion. 70% owned by Gordo i.e. only 30% of these are tradeable £1.5b

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Shares Outstanding: 39,456,004,899

Closing price was 11.60 p

So cap was approx. £4.56 billion. 70% owned by Gordo i.e. only 30% of these are tradeable £1.5b

Cheers RK

So would it be only the tradable value of a company that's used to value it for the FTSE 100?

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Cheers RK

So would it be only the tradable value of a company that's used to value it for the FTSE 100?

Gordo's shares are preference shares which are not tradable and have no voting rights..Only shares that can be freely traded can be considered when working out the market cap of a public company..

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Shares Outstanding: 39,456,004,899

Closing price was 11.60 p

So cap was approx. £4.56 billion. 70% owned by Gordo i.e. only 30% of these are tradeable £1.5b

Thanks for the numbers RK :)

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Cheers RK

So would it be only the tradable value of a company that's used to value it for the FTSE 100?

I think they look at the market cap of the bottom few shares and those just below the 100 and make a decision at the time. So number 101 doesn't automatically replace number 100 if it has a bigger market cap, but that's the general idea.

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I think they look at the market cap of the bottom few shares and those just below the 100 and make a decision at the time. So number 101 doesn't automatically replace number 100 if it has a bigger market cap, but that's the general idea.

Can we establish which stock/sector is most likely to move up - given that it is all but inevitable that RBS, at least, will move down?

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Can we establish which stock/sector is most likely to move up - given that it is all but inevitable that RBS, at least, will move down?

I just tried to find the data but gave up after a brief attempt with no joy. Would be interested to know which companies are there or thereabouts though.

Edit: Noel the the man for this sort of stuff.

Edited by Red Kharma

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The idea that RBS was ever the fifth largest bank in the world just shows how ridiculous the economy has been for the last decade. The ABN AMRO deal was the peak of hubris for this jumped up brat of a bank.....now it's lost 28bn and it's new CEO is on the radio achingly on message with his master, former chancellor broon. Really patherit, cowering display from the big brave bankers now giving in to meglomaniac broon.

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Can we establish which stock/sector is most likely to move up - given that it is all but inevitable that RBS, at least, will move down?

no its not going to move down... nationalised - or dead with a MC north of 4 bill its still in the top 40... the free float being 1.5Bil matters not

schrodes on the other hand... ftse.txt

ftse.txt

Edited by jonpo

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