What would be the best thing to do with the standard life share's when i get them, sell them or keep them

Answer 1

Hi there

No one can be 100% certain with shares but this is a quality company. I also have some shares granted as part of the float and I will be keeping them as a longer term investment. however there are some factors you need to note.

Firstly, Standard Life have not yet set the price for their shares, this will not happen until 9 July (next Monday). Their guide price is 210p to 270p, so if the float price is at the low end (210p) it looks like a better medium term investment (> 1 year). If the shares are priced at the top end (270p), you may want to consider them as a long term investment (>5 years), or sell them for a quick profit.

The benefits for holding the shares for one year is that you will receive a dividend (expected to be about 2% or 5.4p per share) for the period up to 31 Dec 2006 (paid in May 2007). Also you will get 5% in bonus shares. So to summarise the benefits for selling after 12 months based on the share price remaining static:

5% initial share price discount (if you buy additional shares)
2% (approx) dividend
5% bonus shares.

Considering low interest rates on deposits that's quite a good return even if the share price does not increase and stays the same ... but of course shares can go down in price.

I hope this helps.

Answer 2

Depending on the initial share price, which is rumoured to be below even the low end of the predicted range, wait for interest in the shares after flotation. If they rise sharply decide whether you want to be in for the long run - what would be a good profit? Ends the gamble that even after the 12 months or 120 months that you may not see the return. You may get as high a price as in the long run but in the mean time you can make the profit you earned work for you as well in the mean time.

Answer 3

the best thing to do is keep them you are getting them at a discouted rater and there is no reason for them not to go up

if you keep them you will also get bonus shares after 12 months i think their current performance is looking good and there is a good feeling surrounding the company this whole issue as also raised their profile

my suggestion is keep them for 12 months as you will also get a good dividend from your shares reasses the share price then

all above true but if you need the money quick take the cash offer

Answer 4

keep them