Thursday 12 June 2014

Dividend from Deutsche Bank (DB): May 2014

Deutsche Bank, a German bank with several criminal employees

In end of May there was a dividend payment from Deutsche Bank. Since the last five years they have been paying out 0.75 € per share. I currently hold 188 shares which means that I received 141 €.

The Stock Dividends page has now been updated.

With Deutsche Bank there is currently a secondary matter. Since the management is completely useless and they are apparently involved in more litigations than what they had expected it obviously was not enough to only sell more shares to institutions 8which they did last year) and now they are asking each shareholder to push in more money (which is the cause for the current massive drops in share price).

What we shareholder gets is the pre-emptive rights in the equivalent of the amount of shares that we currently are holding. Meaning that I receive 188 pre-emptive rights. These rights I can buy more of or I can decide to sell them. Currently they are being traded around 1.60 €.

To buy one new share I have to spend 3.6 pre-emptive rights which means that I end up having the right to buy 52.22 new shares at the price of 22.5 euro per share. I am in a letter offered five possibilities:

1. I can buy 2.8 more pre-emptive rights and then buy 53 new shares. Total cost around 1196.98 € plus commission fees and I will have a total of 241 shares.

2. I can sell 0.8 pre-emptive rights and then buy 52 new shares. Total cost around 1168.72 € plus commission fees and I will have a total of 240 shares.

3. I can buy x amount of extra pre-emptive rights and y amount of shares + commission.

4. I can sell z amount of pre-emptive rights and t amount of shares - commission.

5. Sell all my pre-emptive right. Giving me a total of 300.8 € - commission and having a total of 188 shares.

The commission fees tend to be crazy high around 20 € for these things which annoys me severely and additionally I have only ten days to come up with the money needed to join in this madness created by an incompetent management that thought they were clever when they calculated profit against the risk and price for any potential litigations.

Stop doing illegal things and start running the business with some competence!

Here you can find the previous analysis of Deutsche Bank 2014.


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