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Holders of Baillie Gifford Shin Nippon IT
S_M
Posted: 21 May 2018 09:29:20(UTC)
#1

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For those of you that don't know, there has been a 5 to 1 stock split this morning. Hence the 80% fall in price.

More concerning is that my broker Bestinvest didn't know this and haven't adjusted my holding. Naturally, I was concerned at the large fall in the value of my holding.
4 users thanked S_M for this post.
dyfed on 21/05/2018(UTC), owen wacker on 21/05/2018(UTC), Guest on 21/05/2018(UTC), lynne shaffer on 21/05/2018(UTC)
Steve U
Posted: 21 May 2018 09:49:19(UTC)
#2

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AJ Bell haven’t updated either
2 users thanked Steve U for this post.
owen wacker on 21/05/2018(UTC), Guest on 21/05/2018(UTC)
Monty Claret
Posted: 21 May 2018 10:10:24(UTC)
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HL informed me of the change last week.

The website is showing the correct values this morning.
S_M
Posted: 21 May 2018 10:40:17(UTC)
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Monty Claret;62566 wrote:
HL informed me of the change last week.

The website is showing the correct values this morning.


Whats that old saying you get what you pay for.

I am not surprised HL are on the ball.

1 user thanked S_M for this post.
Law Man on 22/05/2018(UTC)
andy mac
Posted: 21 May 2018 11:28:00(UTC)
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Iweb informed me last week
I dont recall HL doing so
You couldnt trade this morning on HL as the KID was not in place ( rather I think you could sell but not buy on HL)
1 user thanked andy mac for this post.
john brace on 22/05/2018(UTC)
Jan Bloomberg
Posted: 21 May 2018 12:38:40(UTC)
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What was the stock split for? and is it a good thing? I've been looking at this for a while...
Tom Bards
Posted: 21 May 2018 13:00:41(UTC)
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HL still not showing market data on this
eilidh
Posted: 21 May 2018 13:44:32(UTC)
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Neither are bestinvest, Quite a shock when I looked at my SIPP and ISA this afternoon.

I would like to know what it means
Alan Selwood
Posted: 21 May 2018 14:20:35(UTC)
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Stock splits (or 'Capitalisation Issues' or 'Scrip Issues') are where a company decides to issue free shares to existing holders, usually pro rata, so that the total value of the company is represented by more shares, causing the individual share price to fall (usually also pro rata!). This is often used as a device to make the shares more marketable.

If you take the example of Personal Assets Trust, which is currently quoted at
£395 per share ( as at 8-May-2018), with a total capital value worth £858,893,426 on 30th April 2018, you can see that those wanting to invest £300 per month would not be able to afford a single share.

If the company were to decide upon a 10:1 split, each share of the £858,893,426 would become approx £39.50 and this would allow small investors to acquire shares more easily. Note that it would not change the total value of the company, apart from the cost of implementing the change.

Many large US companies have not bothered to do Scrip issues, and so can have astronomical prices per share. A least they don't look at all like the proverbial 'Penny Shares' that are often poor quality, bombed-out companies that are heading for the scrap-heap!
6 users thanked Alan Selwood for this post.
Jan Bloomberg on 21/05/2018(UTC), eilidh on 21/05/2018(UTC), Law Man on 22/05/2018(UTC), John Inglis on 27/05/2018(UTC), Hilary hames on 27/05/2018(UTC), Guest on 05/06/2018(UTC)
Blue S
Posted: 21 May 2018 14:26:28(UTC)
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Quote:
I would like to know what it means

Quote:
What was the stock split for? and is it a good thing? I've been looking at this for a while..


This is a quote from the 2018 Annual Report:

"The sharp rise in the Company’s share price over the last few years – to over £9 today – has been excellent news for existing investors.
However, the Board is aware that it might be mildly off-putting to new investors and that it can cause problems for those who invest small sums monthly (they will often find that a considerable part of their monthly payment stays uninvested). With that in mind the Board would like to split each share into five. As explained on page 24, a sub-division of each of the current ordinary shares of 10p shares into five ordinary shares of 2p nominal value is proposed.
If this resolution is approved, your holding will be multiplied by five and the share price of each new share is anticipated to adjust downwards accordingly. For shareholders who hold their shares in certificated form, new share certificates will be issued and the old certificates will become invalid."

So holders will have 5x the number of shares but each will be worth 20% of the original value so the holding will be worth the same.
6 users thanked Blue S for this post.
Tim D on 21/05/2018(UTC), Jan Bloomberg on 21/05/2018(UTC), eilidh on 21/05/2018(UTC), John Inglis on 27/05/2018(UTC), stevie on 28/05/2018(UTC), Guest on 05/06/2018(UTC)
Jan Bloomberg
Posted: 21 May 2018 15:18:15(UTC)
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Thanks for the info

Just tried buying some and it cant be held in an ISA... what gives? anyone else had this issue?
eilidh
Posted: 21 May 2018 16:17:03(UTC)
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Thank you to Blue S and Alan Selwood for their explanations. Can breathe a sigh of relief as my Isa holding was 20k in this IT built up over 6 years and showing a splendid profit
andy mac
Posted: 21 May 2018 16:20:42(UTC)
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they are in my ISA so they need to get the update KID out there for platforms
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Guest on 28/05/2018(UTC)
Samual Saunders
Posted: 21 May 2018 16:25:57(UTC)
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Alan Selwood - Thanks for the explanation, which is excellent.

So does this mean that although the value has not changed, is it a good investment to make now or leave a while.

Do these splits have any adverse effect on values shortly after an issue, as I have been considering this IT for my portfolio in my Sipp.
Samual Saunders
Posted: 21 May 2018 16:34:01(UTC)
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Jan Bloomberg;62590 wrote:
Thanks for the info

Just tried buying some and it cant be held in an ISA... what gives? anyone else had this issue?



Just looked at the Baillie Gifford site and an ISA seems to be OK. Perhaps it's your platform?
Jan Bloomberg
Posted: 21 May 2018 16:39:34(UTC)
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Samual Saunders;62604 wrote:
Jan Bloomberg;62590 wrote:
Thanks for the info

Just tried buying some and it cant be held in an ISA... what gives? anyone else had this issue?



Just looked at the Baillie Gifford site and an ISA seems to be OK. Perhaps it's your platform?


Must be, I am with ii, used to be TD, I just get a message saying this can't be held in an ISA... call this number.

Will call them tomorrow and if they say no then I might have to consider switching platforms, which is a shame as I am quite happy with them so far.
S_M
Posted: 21 May 2018 17:20:09(UTC)
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Im sure the companies that have not communicated the stock split are pushing the boundaries of FCA regulations, certainly, at the very least it is their responsibility to ensure their customers are informed of the Stock Split well in advance of it's execution.

Bestinvest will hide behind the fact they outsource their platform administration to a third party. That is no excuse, as things stand I am sitting on a £5k loss with my currrent BGSN holding.



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Guest on 28/05/2018(UTC)
andy mac
Posted: 21 May 2018 18:52:05(UTC)
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s_m how come sitting on a loss

Its your platform who hasnt updated your holding
name and shame HL is saying its down 80% but I suspect you have 5 times the shares so no loss
My Iweb is showing a profit of 37% so that will do

S_M contact your platform
hope all those automatic sells didnt sell or there will ne blood on the streets
S_M
Posted: 21 May 2018 20:49:40(UTC)
#20

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andy mac;62614 wrote:
s_m how come sitting on a loss

Its your platform who hasnt updated your holding
name and shame HL is saying its down 80% but I suspect you have 5 times the shares so no loss
My Iweb is showing a profit of 37% so that will do

S_M contact your platform
hope all those automatic sells didnt sell or there will ne blood on the streets


I am quite aware that this is merely a loss due to bestinvest not updating my shareholding, but they will get a rocket from me in the morning. For their staff to be blissfully unaware of the stock split just shows how unprofessional this outfit are.
eilidh
Posted: 22 May 2018 07:15:34(UTC)
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Bestinvest have now updated my and my husbands SIPP and ISA to reflect split so I feel happier but agree they should have told us before. I also checked Baillie Gifford website yesterday which did not mention the split either!
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