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Son of Fred

Hbos Staff Use Own Money To Prop Up Share Price

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Guest muttley

There are several reasons why a director of a company may sell shares in that company, tax, a new house etc.

There is only one reason that they buy shares in their company. They think they will make money.

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There is only one reason that they buy shares in their company. They think they will make money.

Yes but over what term? I expect HBOS shares will rally tomorrow when the market opens based on this news. Will some of the staff offload at that point for a tidy profit?

(Is that even allowed?)

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There are several reasons why a director of a company may sell shares in that company, tax, a new house etc.

There is only one reason that they buy shares in their company. They think they will make money.

Aye, but I know which way I'll be spinning this at work tomorrow ;)

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Nonsense. God, the conspiracies found here... This small group saw a brilliant opportunity to make money. Good one them.

Isn't that almost insider dealing though ? If these rumours were indeed false then perhaps the above mentioned senior people only knew this because of their position in HBOS ? Are they not just using insider knowledge to gain an advantage on the share market ? I have no idea of the the details of insider dealing but this must come very close.

Or is this similar to a football player betting on his own team.

He bets on them winning - Good luck.

He bets on them losing - Suspicions arise.

?? :blink:

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There are several reasons why a director of a company may sell shares in that company, tax, a new house etc.

There is only one reason that they buy shares in their company. They think they will make money.

Come on, these are smart guys. Do you not think their wives are using IGindex to hedge the risk? Does that need to be announced? You don't even need to hedge against HBOS, if they go down, then you can hedge pretty effectively against the banking sector as a whole. Come on some journalist, ring one of them up, ask them to confirm that they, or their families have not taken any actions to hedge the risk associated with these purchases.

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OK so they used their own money to buy up the shares.

But will they be selling them next week to cash in on the profit ?

If that is the case, then it is already being suggested that an insider of a Bank created the Rumour in order to carry out the trades.

Directors and Senior manager buying up shares in this fashion smells of an insider deal, Trash and Cash.

The acid test will be the time they sell these shares.

If I was a director of HBOS and had visited the Bank of England last week and been told that I will be backed with public money, then I would buy up shares, as many as I can get my hands on.

Edited by laurejon

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I wonder whether they have bought the shares on the open market or whether they have some kind of discount scheme for staff like many US companies do.

I don't see a problem either way but it simply is a good way to make money for them when the HBOS share price rebounds. I seem to recall their shares did very nicely during the last housing crash here in the UK.

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Guest muttley
Isn't that almost insider dealing though ? If these rumours were indeed false then perhaps the above mentioned senior people only knew this because of their position in HBOS ? Are they not just using insider knowledge to gain an advantage on the share market ? I have no idea of the the details of insider dealing but this must come very close.

Or is this similar to a football player betting on his own team.

It's only inside dealing if they are acting on information that is not public. It is not illegal to buy shares in a company you work for.

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http://news.bbc.co.uk/1/hi/business/7311002.stm

Form an orderly queue please, no pushing at the back.

Just saw the story on the BBC. How the hell did they get through to 250 senior managers and get them to agree to buy £20,000 of shares each? This was Easter weekend, everyone would be away. Did they phone round and get them all to agree?

When were the shares bought? The price was only as low as that on friday morning. Was that when the shares were purchased? If so, why was it announced today? Even assuming it was on friday, how did they phone around fast enough, and get everyone to agree?

More likely this is all smoke and mirrors, my guess is that the CEO made a decision to invest part of the bonus pool for next year in buying the shares. Simple as that.

We'll know in a few days, the insider trades have to show up on yahoo finance.

Optobear

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Nonsense. God, the conspiracies found here...

Laughable isn’t it. HPC, it is a comedy act half the time.

There are some pro market watchers who track share dealing by directors and consider buying by directors to be a sign of the bottom of a market cycle.

As to the insider dealing allegation, utter crap “ccc“. All credible information was in the public domain, the directors were using their own money to bet against a nasty rumour. Would HPC forum members prefer that the directors had sat on their cash and waited for the Government to send the same message to the market with tax payers money but costing £ billions more?

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HBOS have very good internal Corporate Comms. They probably had a conference call or perhaps they used their IPTV system. Once a week, I believe, the entire staff watch an IPTV broadcast from the boss. Think it is Tuesday morning hence why they open late on Tuesdays.

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Isn't that almost insider dealing though ? If these rumours were indeed false then perhaps the above mentioned senior people only knew this because of their position in HBOS ? Are they not just using insider knowledge to gain an advantage on the share market ? I have no idea of the the details of insider dealing but this must come very close.

No, it isn't, and I do think people on here should be far more careful about some of the things they post as it is only a matter of time before someone pisses off the wrong person.

HBOS shares were trading at over £11 a year ago and now they are under £5 on the basis of market rumours. The rumours were denied in the correct way and staff took advantage of the cheap share price to buy shares. I can assure you that the company was regarded by staff as good value at £10, so providing there are no skeletons, then at £5 they are excellent value. Why can't you just accept this?

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Just saw the story on the BBC. How the hell did they get through to 250 senior managers and get them to agree to buy £20,000 of shares each? This was Easter weekend, everyone would be away. Did they phone round and get them all to agree?

When were the shares bought? The price was only as low as that on friday morning. Was that when the shares were purchased? If so, why was it announced today? Even assuming it was on friday, how did they phone around fast enough, and get everyone to agree?

More likely this is all smoke and mirrors, my guess is that the CEO made a decision to invest part of the bonus pool for next year in buying the shares. Simple as that.

We'll know in a few days, the insider trades have to show up on yahoo finance.

Optobear

Did it not occur to you that they might have a share purchase scheme linked to the bonus scheme? And do you know when their bonus cycle is exactly?

Sorry Opto, but you areway off the mark on this one.

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HBOS shares were trading at over £11 a year ago and now they are under £5 on the basis of market rumours. The rumours were denied in the correct way and staff took advantage of the cheap share price to buy shares. I can assure you that the company was regarded by staff as good value at £10, so providing there are no skeletons, then at £5 they are excellent value. Why can't you just accept this?

There really are a lot of trusting people on here.

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No, it isn't, and I do think people on here should be far more careful about some of the things they post as it is only a matter of time before someone pisses off the wrong person.

HBOS shares were trading at over £11 a year ago and now they are under £5 on the basis of market rumours. The rumours were denied in the correct way and staff took advantage of the cheap share price to buy shares. I can assure you that the company was regarded by staff as good value at £10, so providing there are no skeletons, then at £5 they are excellent value. Why can't you just accept this?

Northern Rock was determined good value right up the the very day is was nationalised.

I predict a run on HBOS next week as the cat is out of the bag. The company is using emergency funding, could not agree as much as it required, and is due back with the Bank of England next week with a begging bowl for more public money.

The reality is that prudent savers, pensioners, taxpayers are now being fleeced by the Bank of England who are propping up private companies at taxpayers expense. Banks are paying large dividends to retain investors, yet the money used to pay them in essence is coming out of the Taxpayers pocket.

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No, it isn't, and I do think people on here should be far more careful about some of the things they post as it is only a matter of time before someone pisses off the wrong person.

I agree - there are increasingly libellous posts written on this website and I think it will only be a matter of time before someone takes action either against this website and/or against the indvidual posters. There is another thread on here today where the subject in question, IMPO, has certainly been libelled IMPO.

Last night I posted a new thread just pointing out to people here not to concentrate on the negativity all the time as it could easily make you depressed without you realising it. I suggested people concentrate on the positives in their lives and tried to be happy.

Within minutes that thread was moved off the main forum but, as I have seen only this morning, libellous posts are allowed time and time again to remain in threads. Rather stupid.

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Northern Rock was determined good value right up the the very day is was nationalised.

I predict a run on HBOS next week as the cat is out of the bag. The company is using emergency funding, could not agree as much as it required, and is due back with the Bank of England next week with a begging bowl for more public money.

The reality is that prudent savers, pensioners, taxpayers are now being fleeced by the Bank of England who are propping up private companies at taxpayers expense. Banks are paying large dividends to retain investors, yet the money used to pay them in essence is coming out of the Taxpayers pocket.

You don't know what the 'emergency funding' was for and have ignored the fact that they have used the same source of funding on many occassions in the past, as indeed have all the other banks.

You should know better.

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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