Hey Barry, I remember you talking about instalments some time back

[Samir]

But I can't find your previous post. It concerns the roll-over issue. Last week, 1000INPSTAs were converted into 437 INPSTBs with no cash exchanged. I bought 1000INPSTA with the expectation of the dividend of 1000x11.50Pence. But, INPSTA rolled-over into INSPSTB and I only recieved 437. Thus my dividend will only be 437x11.50p. I initially chose INPSTA over INPSTB purely because I could affor more STAs at the time. Now, it has back-fired as my divi income is less than half of what I had planned. Was my method flawed? Or was I just shortsighted when I made the initial purchase?

[barry_1]

It depends on the amount of cash that is obtained when the installments are sold.I also received less PPC than i held previously.The whole process seems murky,i don't know if they purchase the replacements at the moment that they sell.Since it takes seven days to register the new instalments ,if there is a delay in purchasing the amount might differ from what we would get if the new repace the old immediately.Simon assured us that there were no charges for the roll over.Since they are leveraged one would expect to receive more as the new istallments are bought in at a lower price.I hope they are not now changing the formula.I hope Somon or SBK would also reply.

[#3]

I see you eventually received your INPSTB's - I am still waiting for my TBSSTB's!

[barry_1]

How ever u should take it up with the warrant traders as u seem to be short changed badly.We were told that by taking part in the rollover instead of we would save on costs os trading.Did they notperhaps add any money to your money account?

[SimonPB]

if the share price has been falling there is every chance that you will receive less instalments. We cover the process in 2 newsletters, issue 11 & 12 - on the menu ==> help and education ==> educational newsletter.

The time taken for the roll over is not an issue, the transfer numbers are worked out at the 5pm value on the exiry date.

[#6]

An e-mail was sent out on the 11/9/2007 explaining how the roll overs would be done. Unfortunately as one cannot access any data one cannot check their figures!

[SimonPB]

call them and ask for the numbers

[#8]

Thanks for the tip!

[JohnnyCash]

There is of course also a new interest portion that you have to pay that will be included in the new instalment price and may result in less shares??

[SimonPB]

JCash, potentially yes - depends on the move. if it is very little then yes. Teh basic rule is that if the share has moved up by the interest amount (around 6%) then you will get the same.

[barry_1]

Thanks Simon for your input,its a learning curve,next time the rollover nears on any installment ,i'll work out carefully if its worth taking part or rather sell and buy back the amount i want.

[Samir]

Ya Barry, agreed.. Next time its easier to sell out before roll-over and then buy into the new one.

[SimonPB]

Samir, check out costs and then what about tax? Nobody is certain if rollign an instalment is a tax event or not, but selling certainly is.

[Samir]

Rolling an instrument is a taxable event as ur product has changed. It does not just a mere re-naming event but an actual trade out of one and into another. In my example.. I bought 1000INPSTA @ R11.89 incl costs. These then expired and I can assume that I sold them at my cost. Upon which I bought(was given) 437INPSTB @ R27.22. I will tell the taxman that I made no profit on the deal as I have no intention of selling the STB just yet. On the cost issue, then I need to consider whether I want to incur an extra +- R200 charges or would I rather wait almost 10 working days for the issuer to sort the roll-over out. Opportunity cost of money is huge an would probably out-weigh the estimated extra R200 transaction costs.