Weak support for the two-legged black horse

Research by leading financial website The Motley Fool - Fool.co.uk - has found that there is weak support among investors for the latest rights issue from Lloyds Banking Group.

Although almost two-thirds of experienced investors say they will stump up more cash, a fifth reckon it's a bad deal and will be keeping their wallets and purses shut.

Don't throw good money after bad

David Kuo, Director at The Motley Fool comments: "Just because the majority say yes to the rights issue doesn't mean it's the right thing to do.

"Over the last 10 years Lloyds shares are down by almost 90%. An investment of £2,000 in 1999 would now have a capital value of around £200. It's been wealth destruction of the highest order.

"Yet investors seem to be lining up to try their hand all over again. You could say it's like spending £400 to upgrade your old clapped-out computer when you can buy a brand new one for £300.

"If it wasn't for the rights issue, no one would have thought about investing in Lloyds at this time. As always, individuals with money to invest should look at all the shares in their portfolio, and see which looks the best value, before parting with any cash."