Jump to content
House Price Crash Forum
Sign in to follow this  
yellerkat

No Nrk Interim Divi

Recommended Posts

*******BREAKING NEWS********

Northern Rock announces that it will reposition itself as a design consultancy. Directors have been in secret talks with Sochi Winter Olympic organisers and are proud to present their new ski jump concept proposal:

http://newsvote.bbc.co.uk/1/shared/fds/hi/...3/one_month.stm

*******BREAKING NEWS********

Share this post


Link to post
Share on other sites
http://news.bbc.co.uk/1/hi/business/7012768.stm

Northern Rock will not pay the interim dividend it announced in July before August's market turmoil, BBC business editor Robert Peston has learned.

I should bloody well think so, too! What were they expecting? The B o E to pay shareholders their dividends? I don't think Darling could get away with that. At least, not so blatantly ...what he does undercover is another matter....

Share this post


Link to post
Share on other sites
I'm not a NR shareholder so I don't GAF - but if the Divi was from a different trading period (before the troubles) then I'd say that shareholders are right to complain.

Buckers

Don't be so daft. The company is bankrupt and you are pleading the case for a divi to shareholders? Where are you coming from? Ah! I guess you are a shareholder. Perhaps you are even one of those idiots that bought into the plummetting shares on the back of a possible divi. Serves you right if you are...

Edit: Sorry, I see that you protest you are not a shareholder - perhaps your Mum is....

Edited by Methinkshe

Share this post


Link to post
Share on other sites
Don't be so daft. The company is bankrupt and you are pleading the case for a divi to shareholders? Where are you coming from? Ah! I guess you are a shareholder. Perhaps you are even one of those idiots that bought into the plummetting shares on the back of a possible divi. Serves you right if you are...

Edit: Sorry, I see that you protest you are not a shareholder - perhaps your Mum is....

I don't see the dividend makes much difference though.

I know everyone uses a titanic metaphor, but isn't this like the captain trying to p1ss on the iceberg?

Share this post


Link to post
Share on other sites
Did they make the announcement after the market closed? Odd that...

Surely that would be sensible as it gives everyone 16hrs to digest the news, so tomorrow morning only NRK will get panic sold instead of the whole sector.

Share this post


Link to post
Share on other sites

The announcement showed up on the BBC website just before 4pm, after which the share price dropped a further 5p then at the close it had almost sprung back up to where it was before the news of the divi being withheld.

Fed up arguing about the divi - I don't really give a fudge either way. It was due to go ex-divi tomorrow so this really is an 11th hour thing.

Share this post


Link to post
Share on other sites
The U.K. Shareholders' Association Ltd., which has 2,000 members, said today it will fight any plans to sell the company. The organization is seeking a meeting with Northern Rock's chairman and investor-relations director.

`Fire Sale'

``We would like to stop the company from being sold on the cheap in a fire sale, which is what seems to be happening,'' said Roger Lawson, communications director of the association and owner of Northern Rock shares. ``It could rebuild its business given time and reasonable funding.''

Don't you just love small investors - this must be one of their 2 worst case scenarios, lock in that bloody great loss :lol:

One thing that does confuse me though is why the government would want to stop a solvent quality company from paying a dividend to it's shareholders. Now, if we had been talking about a technically bust company, that couldn't pay it's debts, and had to be bailed out at the last minute using tax payers money, by a corrupt Labour government that took donations towards one of it's think tanks, and which saw a threat of losing many jobs in a Labour heartland, well that would be different. That's not the case though. I know, cos' Alisatar said so and he's an honest and competent politician.

Share this post


Link to post
Share on other sites
Don't you just love small investors - this must be one of their 2 worst case scenarios, lock in that bloody great loss :lol:

One thing that does confuse me though is why the government would want to stop a solvent quality company from paying a dividend to it's shareholders. Now, if we had been talking about a technically bust company, that couldn't pay it's debts, and had to be bailed out at the last minute using tax payers money, by a corrupt Labour government that took donations towards one of it's think tanks, and which saw a threat of losing many jobs in a Labour heartland, well that would be different. That's not the case though. I know, cos' Alisatar said so and he's an honest and competent politician.

Is there any reason to hang on to these shares now ?

Share this post


Link to post
Share on other sites

depends how much was apid for the shares - anyone buying at £12 doesn't have that much to lose - if you bought at £3 then you could still get 50% of your money back - there is always a minor possibility that they could be bought out at £2 a shre, but more likely is that the government will have to back the sale somehow and effectively the shares are worthless

my pesonal answer to your question would be 'no, not worth keeping'

Share this post


Link to post
Share on other sites
depends how much was apid for the shares - anyone buying at £12 doesn't have that much to lose - if you bought at £3 then you could still get 50% of your money back - there is always a minor possibility that they could be bought out at £2 a shre, but more likely is that the government will have to back the sale somehow and effectively the shares are worthless

my pesonal answer to your question would be 'no, not worth keeping'

Will the shares be suspended tomorrow ?

Edited by Ash4781

Share this post


Link to post
Share on other sites
Will the shares be suspended tomorrow ?

just realised how bad my typing is!

can't see any reason for the shares to be suspended unless a buyout is agreed - they have a line of credit, albeit from a rather dubious source - with that line of credit they can stay open for the moment, although without knowing the conditions of the credit, who knows if they should be writing new loans i.e. is the bailout money to prevent them going under or is it there to allow them to continue with their business model? - i suspect the answer is the former

if a buyout is agreed then it depends upon the terms - normally a company's shares would continue trading until the deal goes through - however, if the government has had to subsidise the sale i.e. it's the only way any other entity would buy it, then the shares are effectively worthless and, i assume, will be suspended

possibility 1) - not paying the dividend may have been a sweetener to a buyer, tough on shareholders

possibility 2) - the bailout money is there to keep the company going until a buyer is found

my guess is that both are likely and that NR will cease to trade in the next couple of weeks with a share value of zero - having said that, i am not putting my money on any outcome as far as this dog is concerned

none of the above should be taken as advice - the above is obviously my own personal opinion and I am not liable for any losses made by anyone who trades on it

Share this post


Link to post
Share on other sites

http://www.telegraph.co.uk/money/main.jhtm...9/cnrock129.xml

Talks are now believed to have moved on to a deal that would almost certainly see the shareholders completely wiped out and bondholders nursing a loss.

Bankers still believe that a break-up is the most likely outcome, with Northern Rock's most attractive mortgage assets being sold off at a discount while unwanted assets are moved into a rump company and put into administration.

;)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.