Hobson: Countrywide, Interest Rates and RBS

THE WEEK: Morningstar columnist Rodney Hobson warned readers in June of trouble at Countrywide and now it has come to pass

Rodney Hobson 3 August, 2018 | 1:49PM

Bank of England raises interest rates

There’s little pleasure in saying I told you so when it was so obvious that disaster was looming but it has taken less than two months for shareholders in estate agent Countrywide (CWD) to learn that they are indeed facing a nasty fund raising, as I warned in June.

The shares achieved the remarkable feat of losing two thirds of their already depressed value in a matter of minutes when the deeply discounted placing and rights issue was announced at a measly 10p.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC119.36 GBX-0.17
Countrywide PLC108.95 GBX-2.72
Lloyds Banking Group PLC30.11 GBX-1.75
The Royal Bank of Scotland Group PLC121.25 GBX-1.06

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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