Listen the

britops wrote:

Listen the link on CNBC.

The video doesn't work for me, but in any case, that was last week's Tuesday with the interim report, in case somebody is wondering about the title - so that loss announcement has nothing to do with today's drop, it was already in the stock price.

Today (21st) is the first day of trading for the subscription rights for the new shares offering. The drop just reflects that this directed offering probably will not be a similar money making machine for shareholdes than Nordea Bank's similar offering a while back was - I believe this will even out so that if you (as a B&O shareholder) sell your subscription rights, you will have about the same amount of wealth you had before todays' drop, just a smaller share of the company...

To Britops

All thist is welknown, - B&O loose money and need money,- lot of money.

I got a prospect last week where  I could buy a new  B&O stock to 29 danish kr.  For every one stock you own, I could buy two new to a price of 29 kr. each , That should bee called a good deal if the firm was in good shape.

To tournedos

That makes some kind of sense , but I olso think it must bee a huge loss for many shareholdere that dont  want to spend more money on B&O. I own one singel stoch that I bought to 600 danish kr for two yars ago, and I dont want to  loose or spend  more money in that game. Personaly I dont think that B&O  will surveieve , and maybee others feel the same and therefore  the price is going down.

Sorry my mistake. I searched CNBC for the latest B&O news, "in the last 24 hours". I thought it was today's interview.

Gett access to viewing, reading or downloading the new prospectus (the “Prospec-tus”) prepared by Bang & Olufsen a/s (“Bang & Olufsen”) in connection with a public offering of new B-shares with pre-emption rights for existing shareholders (the “Offered Shares”) and ad-mission to trading and official listing of the Offered Shares on Nasdaq OMX Copenhagen (the “Offering”).

http://www.bang-olufsen.com/issue-of-shares-2009

Bulgarien wrote:

That makes some kind of sense , but I olso think it must bee a huge loss for many shareholdere that dont  want to spend more money on B&O. I own one singel stoch that I bought to 600 danish kr for two yars ago, and I dont want to  loose or spend  more money in that game. Personaly I dont think that B&O  will surveieve , and maybee others feel the same and therefore  the price is going down.

You don't have to use your subscription rights if you don't want to.  They are tradable, so even though you got them for free, you can sell them to someone who wants to use them. This means the shareholders were basically given money (not a fixed amount at this time).

The thing is that if you didn't want this, you should've sold your stock before the end of trade on Friday. That's why the stock price dropped straight away this morning - it's a bit like what happens with dividends.

For each share worth 40 DKK you can now buy two more for 29 DKK, which essentially gives you 22  (2 * (40-29)) DKK worth of free wealth if the stock price stays at 40. Or you can just sell the sub.rights, receive cash and go on with your original stocks, at a lower value and at a smaller share of the company.

Which way is more profitable, will depend on the price of the sub.rights and the prices of the stock itself in the future, and we don't know yet. The sub.rights should've been tradeable already today but I didn't find them listed at OMXC nor in my online banking systemt, I'll have to call them tomorrow about what's going on...

In any case, if you had the stock today, you will have to do something before the deadline dates, or you will simply lose because of both the stock price drop, and having your subscription rights vanishing in thin air. Your bank probably will not (cannot) do anything automatically.

Amazing. Group revenue down 50% in three years (since 2006/2007).

moxxey wrote:

Amazing. Group revenue down 50% in three years (since 2006/2007).

That's pretty well done compared to a number of big companies!

tournedos wrote:

The sub.rights should've been tradeable already today but I didn't find them listed at OMXC nor in my online banking systemt, I'll have to call them tomorrow about what's going on...

Well I was a bit fast... - Monday was the first day of stock trade ex-subscription rights, so the allocation date of sub.rights will be tomorrow (Thursday), when they should be "visible". Bulgarien, if you haven't been contacted by your bank about this in a day or two, give them a call.

Anyway, the drop of Monday doesn't say much about how much trust the investors have in the company, it was just a natural consequence of the subscription rights issue as I said earlier. The real test will be at the end of the offering when we hear whether it was subscribed fully or not, and what the share price will be then.