If you have been following the comments of this post, you'll know that another reverse arbitrage play I tried was Point Acquisition. The reverse split occurred back on December 12 and I and several other have been anxiously awaiting our round up shares (the shares needed to bring us up to a round lot of 100 shares post-split). I spoke to their transfer agent today and she tells me she received authorization to send out the round up shares and they have gone out. Apparently, she sends them out in groups to the various brokerages. She said shares have been sent to Scottrade. She said 4,000 shares were sent to Schwab on 1/17. No shares have been sent yet to Fidelity, so if they are your broker, you might want to give them a call. I have not received any share in my accounts yet, so it still may be another day or to until they show up.
The share price was hovering around $5.00 for the last couple weeks, but it seems to have fallen down to $2.50 or so lately. I expect a price decline due to a bit of dumping as the round up shares start making their way into people's accounts, so I would be sure to use a limit order when selling (if you are going to sell). As always, this is not a solicitation to buy or sell any security. Do your own due diligence.
Friday, January 19, 2007
PAQC / PAQN Round Up Shares Distributed
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18 comments:
FYI, my shares are with etrade. I have not received my rounded up shares yet.
Someone did! I wonder who...
Shaun,
How do you find these reverse arbitrage companies?
Thanks
Chris
See my comments to this post.
Wasn't there another one something like US Film National? How is it going?
That name doesn't ring a bell. Sorry.
Yes, there's one by the symbol UNTF (used to be UTNF).
It split a couple weeks ago. In my Etrade account the symbol and shares are completely gone. There is a remark in my transaction history showing a debit of shares from the reorganization department. I'm assuming they will reappear when the transfer agent gets Etrade the new shares. I'll call on it if they don't appear in the next week.
So who has gotten their PAQN so far,
and a more important question, when your shares come in who is dumping and who is holding?and why?
I will probably sell in one account and hold in the other. I will sell in one to ensure I get my investment back plus a profit. At today's price that profit won't be much. I'll hold in the other account and wait out people who are dumping...and hopefully see the price eventually float back up to where it should be (based on the split ratio and the price at which it split).
dumped my 300 shares today
Shaun, You might want to call Laurel at Pacwest Transfer again. She has told schwab something very different about mailing PAQN.Now she says mailed Schwab's shares YESTERDAY. Very Funny!! She LIES!!
Got my shares through Etrade today.
Mine showed up after the market closed today in my Scottrade account. Nothing yet in Schwab. I also heard that they showed up in TD Ameritrade accounts on Wednesday night.
why would you hold? the only reason we are buying is because of the reverse arbitrage. If this wasnt a reverse arbitrage play would you really have bought that stock? If the answer is no then after the split happens you should get out.
But I guess to each his own
After waaaay too long of a delay, the round up shares finally appeared in my Schwab account today.
I sold yesterday at $1.85 in two accounts. By holding a little longer I gained an extra $140.Yep, to each his own.
"Anonymous said...
why would you hold? the only reason we are buying is because of the reverse arbitrage. If this wasnt a reverse arbitrage play would you really have bought that stock? If the answer is no then after the split happens you should get out.
But I guess to each his own
"
Shaun, I have read some of your more current posts and I haven't seen any reverse stock split investments. Have you moved away from them or just haven't posted. I did a little research into them and found some in the SEC filings that happened earlier this month, but I see none coming up :(
Justin H
Funny you should mention it. I have been checking only sporadically and haven't found anything. Then earlier this week, I found one. The split happens Tuesday, so it's too late to buy shares now, but I was able to get a couple yesterday.
It seems your broker has a large impact on whether or not you can get these small stocks. I have 6 accounts at Charles Schwab and put in buy orders on each of them. I also have one account at Scottrade and but an order in there. The Schwab orders sat unfilled for three days yet the order at Scottrade was filled.
But my feeling is these trades are getting harder to find because companies have wised up to this tactic now.
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