Shares in Northern Rock

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Elphaba

Guest
I placed a telephone deal a week ago for some share in Northern Rock and to my horror have discovered they are to be delisted. I placed order with computershare, rang to cancel but to my further horror I'm tied into the deal
and have to send on the funds. Anyone any advice. Im well aware shares go up as well as down, just never expected them to be delisted. I feel like a right wally.....
 
Your shares are now underwritten by the British government so I shouldn't worry. It sounds as if N.R. will be 'shrunk' over the next three years as it grew too fast. They will probably raise their interest-rates and sack staff with the intention of becoming viable again. Personally I think the 'temporary nationalisation' of N.R. is absurd and ill-conceived but I'm not the Minister for Finance. This is all to protect shareholders at the expense of the tax-paying public. If you are a shareholder your interests are being protected - in the short-term anyhow.
 
Elphaba said:
I placed a telephone deal a week ago for some share in Northern Rock and to my horror have discovered they are to be delisted. I placed order with computershare, rang to cancel but to my further horror I'm tied into the deal
and have to send on the funds. Anyone any advice. Im well aware shares go up as well as down, just never expected them to be delisted. I feel like a right wally.....
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Sorry to say but I think you will just have to cross your fingers and hope the British Government give some value to shareholders. At least you bought them at a low price so your losses whould be limited IF the government gives something for the shares in compensation. Bad trade at a bad time!!
 
Marie said:
Your shares are now underwritten by the British government so I shouldn't worry. It sounds as if N.R. will be 'shrunk' over the next three years as it grew too fast. They will probably raise their interest-rates and sack staff with the intention of becoming viable again. Personally I think the 'temporary nationalisation' of N.R. is absurd and ill-conceived but I'm not the Minister for Finance. This is all to protect shareholders at the expense of the tax-paying public. If you are a shareholder your interests are being protected - in the short-term anyhow.
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Completely wrong. Shareholders lose out by nationalisation. They are not protected. Shares at this moment are worth nothing until the Government decides how much if anything at all to pay out as compensation.
 
Sunny said:
Completely wrong. Shareholders lose out by nationalisation. They are not protected. Shares at this moment are worth nothing until the Government decides how much if anything at all to pay out as compensation.
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Correct. The government done this to protect taxpayers NOT to protect shareholders. I would be surprised at any payout by the government of more than 25 pence per share
 
And this isn't the first time they've done this. Shareholders in Railtrack lost out big time when the company was nationalised as Network Rail.
 
Thanks people, I'd imagine shareholders in the U.K. will put up a fight.
I'd be very unhappy with anything less than 50p, bought them for 90p.
Monday morning is bad enough without a sharp reality check. Have to go to the bank to send on the funds or I'll have to pay a late payment fee and daily interest.:mad:
 
Elphaba said:
Thanks people, I'd imagine shareholders in the U.K. will put up a fight.
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I don't see why the British tax payers should bailout the shareholders of a company (any further than they have already done) . Investing in Northern Rock last week (or anytime since October) was akin to playing roulette.
 
Nationalisation was a fallback option in case proprosed private equity bids failed.

Northern Rock is based in North England, so I would estimate a slightly higher payout for shareholders as a result of political fallout.
 
dunkamania said:
Nationalisation was a fallback option in case proprosed private equity bids failed.

Northern Rock is based in North England, so I would estimate a slightly higher payout for shareholders as a result of political fallout.
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I would not count on a payout.
 
Elphaba said:
Thanks people, I'd imagine shareholders in the U.K. will put up a fight.
I'd be very unhappy with anything less than 50p, bought them for 90p.
Monday morning is bad enough without a sharp reality check. Have to go to the bank to send on the funds or I'll have to pay a late payment fee and daily interest.:mad:
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Elphaba, I dont want to sound mean, but what was going through your head when investing in these shares ?? Its crazy.
If you want to invest in stocks and make money, you need to trade over long-term (assuming you're a novice). I would suggest you do the following :-

1. Accept that you've probably lost your whole investment. Forget about a payout.

2. Buy a book called "The Warren Buffett Way" and read it cover to cover. Then you`ll have the tools to select decent stocks.
 
An independent body will decide on what, if any, payment should be paid to shareholders. It will be negligible though. Like other posters I find your decision to buy shares last week and your shock at the British government's decision to nationalise a little bizarre to be honest. Sorry to hear you'll (probably) take a hit, but I suppose it'll be a lesson.
 
Yes, its a hard lesson alright, but who could have forseen that NR would be
nationalized. I bought them on the assumption Virgin would be taking them over. Was nationalization as a fallback option common knowledge???
 
Moneyweek has mentioned the possibilirt of nationalisation a couple of times.

[broken link removed]

Also click on the related stories.

I signed up for the free daily email with moneyweek and its not bad, some interesting articles. I was going to sign up for the magazine but they have made it very expensive to buy from hhere. I only wanted the onlone edition anyway.


Murt
 
Elphaba said:
Yes, its a hard lesson alright, but who could have forseen that NR would be
nationalized. I bought them on the assumption Virgin would be taking them over. Was nationalization as a fallback option common knowledge???
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Absolutely...because Virgin were rumoured struggling to raise the necessary funds and the price would have been low anyway because of the turmoil in the markets. Seriously, you shouldn't be investing in shares without doing your homework or paying someone to do it for you. That's madness.
 
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