I saw lots of action today with my reverse split arbitrage stocks and a bit more progress in my Oklahoma house purchase.
Although I said back on January 29 that my PAQN reverse arbitrage play was completed, this turned out to be a bit premature. I made this play using two brokerages - Scottrade and Schwab. Scottrade got my round up shares on the 29th and I sold them. I had assumed that Schwab would get them shortly thereafter. Turns out, it took over a week longer. Today they finally showed up in my account and I sold. I didn't bother to calculate the exact return like I did for the Scottrade sale, but it was probably a little better because I sold this time at $1.25 instead of $1.15.
In other news, I finally got to clean up some leftovers from a failed arbitrage play. Back in November, I made an arbitrage play with Dolce Ventures, DLCV. This company underwent a reverse split and name and symbol change. Their new symbol is SGAS. For whatever reason, it seems their Board of Directors decided not to award round up shares after the split, so I was left with just 4 shares of SGAS in each of three accounts. For most of the time after the split, the stock traded around $5, so it didn't really make sense for me to sell since at that price, I wouldn't cover my costs and initial investment. So I just held on to the stock. A noticed a week or two ago that the price jumped to $10 for a brief moment and then, maybe an hour later, dropped back to $5. Hmm.. So I put a limit order in to sell at $10 and waited. Today, my order was executed and I sold my shares in all three accounts at $10.02. I ended up making about $2 on the play, but it's better than losing money. And considering the arbitrage play failed, I'm happy to have made even $2 on it.
On the new rental property front, my new property manager and I are clearing up some details regarding the management agreement. Our escrow officer is out of the office this week, so I don't know yet if she received the paperwork and earnest money I sent to her last week. No other problems on that front. I still need to contact the insurance agent and mortgage broker to get those tasks moving forward.
Thursday, February 08, 2007
Lots Of Action Today
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9 comments:
Did any of you guys get into the HQSM reverse split?
From the DEF 14C
"As stated in the 14(c) Information Statement, no fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise be entitled to receive fractional shares because they hold a number of shares of common stock that is not evenly divisible by twenty (20) will have the number of new shares to which they are entitled rounded to the nearest whole number of shares. No stockholders will receive cash in lieu of fractional shares. Any stockholder who owns 99 or fewer common shares as a result of the reverse stock split will have the number of new shares to which they are entitled rounded up to 100 shares."
Any stockholder who owns 99 or fewer common shares as a result of the reverse stock split will have the number of new shares to which they are entitled rounded up to 100 shares.
99 or fewer common shares as a result of the reverse stock split.
If you owned 50 shares pre-split after the 1 for 20 R/S you would have 2.5 or two and one half new (post-split shares. "99 or fewer common shares as a result of the reverse stock split are entitled rounded up to 100 shares."
I have not yet received mine.
have not received mine either.
Shaun,
I got my HQ roundup shares yesterday. Did yours come in at Schwab?
i got my roundup shares of HQ yesterday.
did you get yours? if not what broker do you use
?
Nothing yet. In fact, just yesterday I contacted the CEO to find out the name and contact info of their transfer agent and was going to give them a call today. I've got nothing in my Schwab or Scottrade accounts.
FYI, I contacted the transfer agent today and they told me their shares should have been distributed to Schwab and Scottrade already. I've contacted customer support at both companies to see what the status is.
So I checked my Scottrade account this morning and the shares were not there. I emailed them about it and got a response saying the shares would be put in my account when Scottrade received them. About 1 hour after receiving the email, I checked my account and the shares were there.. Still waiting for Schwab though.
Got the shares in my Schwab account today.
I've been getting comments on this post regarding other arbitrage plays and I have been routinely deleting them. The reason is that my blog is primarily about real estate. I do not want this to become a stock trading blog. I probably never should have posted about this stock strategy, but I was excited at the prospects and felt like sharing. Going forward however, you are on your own. I've detailed how to find these things and I think the previous comments have shown what to expect afterwards. That's all the information you need. Good luck!
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