This press release from Dolce Ventures indicates their 304.44 for 1 reverse split should be completed on or about November 16. This is the arbitrage play I wrote about earlier. If you are making this play, I would start checking your brokerage account daily. Based on my experiences with Schwab, once the split happens, you'll probably see their ticker symbol, DLCV, in your account replaced by a number. About a week or so later, depending on your brokerage, you should see the new ticker symbol in your account. (I don't know what the new symbol will be, but the new company name will be Sino Gas International Holdings, Inc.) Again, if you own less than 15,222 shares, your shares should not be affected by the reverse split. You may want to call your brokerage's reorganization department to make sure they handle this correctly. It helps to have their SEC Schedule 14C filing in front of you when you call so you can refer the person you are talking to to the official document.
Wednesday, November 15, 2006
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23 comments:
HEAVY Volume today on DLCV. The earnings report looks very strong. This may even be a stock to hold onto given the growth & development in China.
That's something each person will have to make up their own mind on. Personally, I never hold on to these plays for long. I buy them purely for the arbitrage play, so I have done no research on the company, the sector, or anything. I agree the earnings report looks great and there is long term potential in China. But there is also the possibility of political unrest, trade sanctions, currency exchange risks, and all sorts of other issues. I'm happy to take my gains from the split and move on. As always, do your own due diligence.
Good points. I'll probably sell some and hold on to some...
We should see the result quickly, it is already showing under a cusip in my account.
SGAS.OB. Its official!
Where did you see the new symbol is SGAS.OB? I can't find that yet.
FYI, in my etrade account my 100 shares are now 0.32847 shares of SGAS. Looks like management did not choose to leave small lots alone.
That's not even the correct amount. If you were affected by the split (which you shouldn't be), you would have 0.30444 shares. I would call e*Trade. Refer them to the SEC filing and ask that they contact the company. Or call the company direct and ask about it. I think their number is in the SEC filings somewhere.
I'm going to call Etrade, but doesn't the filing say "At Management's discretion". Doesn't that mean they can go ahead and perform the split all across the board?
And 100 shares / 304.44 = 0.328
FYI, my Schwab account shows the ticker symbol replaced by a number (1753575) but I still have the number of shares of DLCV that I originally bought. My Scottrade account still shows DLCV and the original number of shares, but it has marked the shares and unavailable for trading. For those at e*Trade, it sounds to me like they just programmed their system with a split ratio and just applied it to everyone, regardless of whether it was correct or not. FYI, it has been my experience in these situations that the company will contact the brokerages and deliver the correct number of stock certificates. This typically takes a week or two.
OK, I see a press release confirming the new symbol: http://biz.yahoo.com/prnews/061117/cnf006.html?.v=14
The press release re-iterates special treatment for people holding between 15,222 and 30,444 but DOES NOT talk about those holding less than 15,222 shares.
There has been no trading activity on the stock today. This one may be a bust.. We'll have to wait and see..
Just for the heck of it, I emailed the two contacts listed at the end of today's press release (the CFO and the Investor Relations contact) and asked about people holding less than 15,222 shares. I'll let you know what, if any, response I get.
Nice work. I'd definitely like to hear what they say.
Hey Shaun,
Looked at my Etrade account this morning and my SGAS shares were now listed as a number (not as SGAS as yesterday) and I have 100 shares again. Maybe it's not gonna be a bust after all! They are still listed at $.02/share though.
R
The transfer told me last Wednesday there will be no fractional shares issued, everything will be rounded up to the nearest whole share. Also that the board of the company had not yet determined what kind of special treatment if any they will give to shareholders. It would not surprise me if they decided to give all accounts a minimum of 100 shares.
Scottrade shows that I own 5 shares of SGAS for my 1800 shares of DLCV. I have not contacted their office yet. Have you heard anything from them?
My Scottrade and Schwab accounts both were converted based on the 1 for 304.44 split, rounded to the nearest share. That sucks. Oh well, I guess you can't win them all. I heard back from one person at the investor relations email and he just quoted the first line of the paragraph of the 14C that said no fractional shares would be issued. I replied with the line a couple sentences later in the same paragraph that said owners of less than 15,222 shares would not be affected. I received no response to that email.
So this one was a bust. I think I'm out a total of $75 or so. But since I made almost $2,000 in my last two attempts at this, I'm still ahead. As I've always said, only invest money you are willing to lose. Anyway, I'm not really out this, since I have shares in the new company. Of course, the commission to sell them is more than they are worth.
On to the next one!
damn. 2 shares of SGAS. I cant really say that I lost.
When I first bought dlcv I bought to much so I had to sell most of it. In that time it increased so I made like 12$ there. That 12$ will be my commision cost when I sell it. So Im breaking even.
FYI, SGAS opened at $6 today and is currently trading...
Shaun, you sound convinced that this is a bust. I could easily be wrong, but to me, things seem to be on track.
Usually we get the standard cut-and-dried reverse split (in this case 304.44/1) soon after the reverse split takes place. Then, a few weeks later, the round up shares are received. Am I missing something here?
Thanks
Also, I need a bit of advice on Schwab. You Schwab guys seem to get round up shares a lot quicker so I recently opened a Schwab account. I put $40 in just to test it out. However, there are different balances in the account. The problem is, the Penny Stock balance remains at $0.
What are the special conditions to trade penny stocks?
Interesting. I've always received the new shares all at once. But if in the past you have gotten the round up shares after you received the split shares, that means it may still work out. Hopefully, you are correct.
With regards to Schwab and account balances - sorry, but I have no idea what you are talking about. I don't have different balances and don't show a Penny Stock balance. All my Schwab accounts are IRAs, so maybe that's why I don't have that info. The only special conditions I know of for trading penny stocks is that you can't buy them on margin - you have to have the cash in your account to purchase them.
FYI, a friend of mine just had the same issue with the "penny stock balance" with Schwab. He called and found out it is a cash issue. In order to buy penny stocks, your cash must have been in the account for at least three days.
Looks like a bust...
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