Years ago I (rather naively) bought some shares which subsequently performed really badly. However, it seems they have increased in value by a lot.. something like 350% in 1 day... does something like this happen on a split? It seems a little odd that they'd increase so much in a day... am I'm missing a piece of the puzzle? :-/
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I've never sold any shares but would like to know more about the process. It seems as though I can sell shares without them needing the certificate? And they'll send me a CREST form after the sale which requests my certificate details. Seems a bit trusting doesn't it?
If it sounds too good to be true, it usually is. a) the share price jump could well be because of a share split b) if you sell shares and don't have (lost) the certificate, you will usually have to sign an indemnity, and the indemnity will cost usually about GPB50 (it's insurance against the certificate turning up later)
Thanks Allan. Yeah, you're probably right; looks as though I need to locate the correct share certificate. The one I had tells me how many units I own, however it doesn't have the value of each unit.. something the guy at Lloyds Sharedealing service asked for. All my documents (apart from what I thought was the right certificate) are at home so it looks like I'll have to check this out tonight.
I don't see any evidence of a 350% price rise - they've been in a steady decline for a long while. 2006 high 240, low 32, yesterday's close 55.75, lower today. However:
"Reflecting the requirement to reduce the cost base of the Company, the first results of this review were the changes in the capital structure being proposed as part of the capital reorganisation and the move to AIM, which are described in the Notice of AGM. The capital reorganisation is expected to create a more appropriate capital structure for the Company and save costs of approximately £200,000 per annum. The decision to propose the capital reorganisation was not one taken lightly by the Board, particularly in view of the impact it will have on smaller shareholders, particularly those with less than 40,000 shares, and the Board is aware that certain shareholders may feel unhappy with the capital reorganisation."
These must be the only guys not making money in China right now.
Be very careful you only sell the shares you own; if there has been a re-structuring and you sell (for example) the 10000 shares you think you own, which turn out to be 1000 (for example) of the post-restructuring shares, you'll have to go into the market and buy the other 9000 to deliver them to your original counterparty. That might hurt.
Ah, all I saw in Yahoo finance (which contains my portfolio) was that they'd shot up to 55.75 from practially nothing.
This sounds like exactly what they've done. Otherwise there's no reason for this increase. I'll try to work out how many I now own after the re-structuring, but I guess I'll get something through the post.
This is the best site for keeping up to date with company news -
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In any case you should have been sent this information.
"On completion of the Capital Reorganisation, each Shareholder shall, save as set out below, receive 25 New Ordinary Shares for every
40,000 Existing Ordinary Shares held by them on the Record Date. . . Shareholders should be aware that if they hold fewer than 40,000 Existing Ordinary Shares they would not be entitled to receive any New Ordinary Shares under the Capital Reorganisation and as a result would lose their entire shareholding. If the Capital Reorganisation is approved, fractional entitlements would be aggregated and sold in the market for the benefit of Shareholders and distributed to them, except that any net proceeds which after the deduction of the expenses of sale are less than £5.00 would be retained for the benefit of the Company. . . Trading in the New Ordinary Shares would commence on 1 August 2006. Subject to the Capital Reorganisation being approved by Shareholders, share certificates for Existing Ordinary Shares will no longer be valid and new share certificates will be issued."
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