Shares - press release!!!!

[bonhoga]

Hi All,

Has anyone received an email telling them about a reverse split of shares in Euro Disney???? The link is: http://www.eurodisney.com/data/244.pdf
- anyone have any ideas?

Should we all be panic buying while they are still penny shares, or is it too late or won't make any difference anyway - basically I'm hoping someone is more informed than me!!


Kaye

 

[TeamJones22]

A 'reverse split' is something a company does to make their shares look more valuable when really,nothing has changed at all. Its usually a bad sign if a company needs to do this,but then again you already knew euro disney s.c.a was in a bad way. Its usually a warning sign to investors to be honest,because if a company needs to do this then they are struggling to make a profit and will be struggling to do so for a while. But like i said,u already knew that.

Its like having a pie,and cutting it into one hundred pieces. if you buy 10 little slices of the pie,uve got 10 out of 100(10/100 or one tenth). What they want to do,eventually,is rather than have 100 little slices of pie,they want to have just 10 big slices,so the pieces are bigger.so instead of having 10 little slices,ul have one big slice(1/10 or one tenth),Uve still got the same slice of the pie,its just it looks bigger.You still have one tenth of the pie.Make sense? Sorry if u arent following its a bit weird to explain!

It wont effect the value of your shares,if uve got £100 worth of shares now,ul still have £100 worth of shares after the change.

Ill try and make it as simple as i can. This is just a way for the company to make their share price better,to make the company look healthier than it really is and more attractive to other potential investors.

I wouldnt do anything to my shares if i were you. Yeah,its not usually a good sign but its not a surprise in euro disney's case and there are still a lot of exciting projects in the pipeline for the next few years. The only reason ud worry about this would be if you bought these shares looking for a very short term profit,and i really hope you didnt!

Just stick with them,they have to look out for the long term health of euro disney and they wouldnt do anything that they thought wouldnt be a positive step. Uve just gotta trust them,you wont lose out at all by this happening.

Hope that was a help to you
Martin

 

[Iain Chapman]

Martin,

Oh wise one.....

As they would plan to convert 100 shares into 1 new share - any thoughts on what would happen if you held, lets say 175 shares?.

Would the 75 shares 'disappear' or would you have been expected to have shifted these yourself prior to a cut-off date.

I'm just wondering - and really I guess if they are seeking 'permission' to do this in February it's going to be mid 2006 before it occurs, whether it's of benefit to start considering purchasing extra shares to make the holding a 'round' hundred?.

The part that I didn't understand from the press release was the line:

"The authorisation would last approximately one year until the following annual shareholders meeting to be held in 2007."

Does this mean that following the 2007 annual shareholders meeting, the shareholders could force Eurodisney SCA to put it back as it was?.

Thanks

 

[Ware Bears]

Last time they "fiddled" with the shares we were given the option to purchase more. Perhaps they will do this again. Hope this happens again as I no longer have enough to qualify for free shareholders club membership but am reluctant to buy more on the open market because of having to pay brokers charges etc.

 

[TeamJones22]

wise one? ha ha,thanks! everyones got to know something right? just a shame i know about boring things like 'reverse splits' and share prices!

Well,your shares cant just sort of vanish. As far as i know,one of 2 things will happen:

i) if you have a share dealing account with a bank,and thats how u bought the shares,then you will have already decided with your bank whether you wanted to buy or sell,and this will be done for you by your bank. Although im not sure if many people will have gone with a share dealing account,i doubt there will be many people who have done it this way to be honest.

ii) Before the transition so to speak,euro disney s.c.a would have to send you a letter informing you of the changes and asking you whether you wish to buy a few more shares to round up to the nearest hundred,or whether you wanted to sell your shares to go back to the nearest hundred. For example, if you have 678 shares,you could either buy 22 more to make 700,or you can sell 78 to make 600. This is probably likely to apply to around 80-85% of people who have the shares,and im sure itll apply to most if not all people on this forum

There wont be any rush or any panic for you to do this though so dont worry if you dont get a letter in the next few weeks or even months, because as stated it has to be voted on in the shareholders meeting and if its approved(which it probably will be) then it has to be arranged,so i wouldnt expect to see any big changes made until mid-late 2006.

As for the bit you didnt understand,yeah,it just means that at the shareholders meeting in 2007 the shareholders will vote on whichever they prefer,and they could vote to put it back the way it was. So if you dont feel its working out,then you can vote for the old way.

All shareholders should recieve notification of any changes through the post between now and this time next year,so i wouldnt worry about it too much,they are a Plc and cant do anything without the approval of the shareholders.

Martin

 

[Ware Bears]

Thanks for all your "wise" words Martin. You have explained all this very clearly, so clearly in fact that I was able to explain it all to my DH when he came home from work. Better not let him see this thread, I do not want to shatter his illusions about my newfound financial expertise!

 

[Cyrano]

I got the press release and appreciate the explanation of what it all means

 

[DisneyRGB]

I was able to explain it all to my DH when he came home from work. Better not let him see this thread, I do not want to shatter his illusions about my newfound financial expertise!

 

[Iain Chapman]

Thanks Martin!.

 

[bonhoga]

I was able to explain it all to my DH when he came home from work. Better not let him see this thread, I do not want to shatter his illusions about my newfound financial expertise!

I'll second that Rhiannon!!!



Thanks Martin!

kaye

 

[SandraVB79]

Last time they "fiddled" with the shares we were given the option to purchase more. Perhaps they will do this again. Hope this happens again as I no longer have enough to qualify for free shareholders club membership but am reluctant to buy more on the open market because of having to pay brokers

OK, I am new to Disney-shares (though I know they are not the best shares out there to buy and make profit of!)
What is the free shareholders club, what are the benefits? How many shares do you need?

And now comes the real stupid question: if you buy Disney-shares, do you get nice paper ones, with Mickey or so on them?

 

[Cyrano]

The shareholders club is free if you hold 2,000 or more shares. Otherwise there is a membership fee.
Benefits are discount on table service restaurants, purchases at shops and discount on bookings. Have a look here

Broker holds my shares so can't comment on how they look

 

[steve_rob]

Broker holds my shares so can't comment on how they look

They're on a pretty bland piece of paper I'm afraid, just Euro Disney S.C.A at the top for what I can remember.

 

[Cyrano]

They're on a pretty bland piece of paper I'm afraid, just Euro Disney S.C.A at the top for what I can remember.

Thanks, although like others it is for the discount and Salon Mickey access rather than the look of the certificate that I went for shares

 

[BONITATIME]

I purchased 500 this year and in one holiday they more than paid for themselves in discounts
Nikki

 

[SandraVB79]

Can you just buy 500 or 2000 shares? Isn't there a minimum amount of money that needs to be involved?? I have never bought shares before, but I am seriously considering buying 2000 of them for the discounts you get. Too bad I don't have time anymore for that before my next trip

 

[disneyangel]

Hi Sandra

I would buy them ASAP as as long as the office have received your form they will issue a temporary certificate which allows you all the same discounts except hotels.

Hope this helps

 

[bonhoga]

Ooooh good idea Angela - I forgot they did that. When I bought my shares from Hargreaves and Lansdown [0117 988 9880]I received them within 48hrs - and I live in Shetland, so you could still manage it Sandra!!!!!


Kaye

 

[SandraVB79]

My mom is going to call the bank tomorrow in order to see how I can buy those shares. If I have the shares, I'm going to call Disney to ask how is the quickest way to get my card/ some form that says I can have the discount!

 

[Cyrano]

Sandra you can buy as many or little as you want, although most brokers will have a minimum handling charge.