Lloyd's - Heads Up On New Share Issue.
Just a heads up for nervous investors.
With the new capital raise through share offering for current stock holders (not ADR holders), things may get a little choppy in the shorter term, but in the longer run, it is very positive.
The "rump" has been approved and put into place. The ADR holders were not offered an opportunity to purchase new shares but should get some kind of cash payment from it. The amount is still unknown.
This same thing happened the last time they issued new shares.
It is hard to tell exactly what effect this will have in the short term on the ADR holders when the old shares and new shares are merged together.
My personal feeling is that it will not be significant, but if you get nervous when you see a sudden drop, then maybe you will want to bail (if you have a profit), and buy back in later.
I myself will hold and wait to see what happens. If there is a significant drop, I will increase my position.
The raising of this new capital will have a very good long term effect, so if you are in for the long run, and don't get paniced by short term fluctuations, then I would say hold and add.
Do what you think is right for you.
JMO and worth exactly what I am charging for it.