tag:blogger.com,1999:blog-7126131564610858851.post1504766907385122588..comments2023-09-09T10:21:32.853-04:00Comments on The Hackensack: Penny Ante Arbitrage UpdateDaveinHackensackhttp://www.blogger.com/profile/01313169814904229272noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-7126131564610858851.post-35178264844403663372009-05-03T23:24:00.000-04:002009-05-03T23:24:00.000-04:00Rama,
The first step in the company's proposed pl...Rama,<br /><br />The first step in the company's proposed plan to go private is a 750-1 reverse split. If you have 750 shares, you would get exchanged for 1 new share in that step; if you have fewer than 750 shares, the plan is for you to get cashed out at 36 cents per share.DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-3531623393176850092009-05-03T22:51:00.000-04:002009-05-03T22:51:00.000-04:00What is magical about this number - 749 shares. ...What is magical about this number - 749 shares. I am probably missing something obvious here. Can someone help me understand.Anonymoushttps://www.blogger.com/profile/07049902568241767976noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-89139490331598114812009-03-16T09:52:00.000-04:002009-03-16T09:52:00.000-04:00Thanks for posting that, I was searching for share...Thanks for posting that, I was searching for shareholder, not stockholder.<BR/><BR/>So who owns this? I don't mean who owns 749 shares, but who are the big owners? Insiders don't own a lot. Of the 31 million shares, the top holders are Red Oak Capital Partners (are they associated with the insiders?), Renaissance Technologies (they won't want to hold a private company, so they're likely selling their 1.6m shares), Dimensional Fund Advisors (not certain, but likely don't want to hold), and down the list. So I think we get continued selling pressure until all the big holders sell...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-69029060522703601362009-03-14T16:46:00.000-04:002009-03-14T16:46:00.000-04:00HHAMAZARAhttps://www.blogger.com/profile/02998969203356224032noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-13773080080009782982009-03-13T18:24:00.000-04:002009-03-13T18:24:00.000-04:00Incidentally, the fellow whose idea this was initi...Incidentally, the fellow whose idea this was initially added this comment yesterday on the company's <A HREF="http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_A/threadview?m=tm&bn=19632&tid=60556&mid=60566&tof=4&rt=2&frt=2&off=1" REL="nofollow">Yahoo! message board</A>:<BR/><BR/><I>"If there are 10K shareholders, there won't be anywhere near that many 749 share lots. I would expect mostly a standard bell-curve distribution, skewed slightly towards 749, so call the average 400 shares. Accordingly, 4M shares get bought @ 36 cents, about half the cost of your expectation.<BR/><BR/>In any event, the risk isn't whether they will have enough cash, it's whether they can muster the required number of votes.<BR/><BR/>Just make sure you cast yours, ok?"</I>DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-55333482028065537182009-03-13T18:09:00.000-04:002009-03-13T18:09:00.000-04:00"Why can't I see the # of shareholders in the 10-k...<I>"Why can't I see the # of shareholders in the 10-k? I must be blind, can you provide a page number?"</I><BR/><BR/>Looks to be p.11 according to <A HREF="http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6363912-50693-52813&type=sect&dcn=0001104659-09-004370" REL="nofollow">Edgar Online</A>. Here's the quote:<BR/><BR/><I>"As of October 23, 2008, there were approximately 10,054 stockholders of record of the Company’s common stock."</I><BR/><BR/>From my original post on this, here's where I estimated the cost of cashing everyone out:<BR/><BR/><I>"Assuming that each shareholder will have the maximum number of fractional shares (749), the company will have to cash out 7,530,446 shares. At 36 cents per share, that would cost $2,710,960."</I><BR/><BR/>There may be more shareholders now than in October though, I don't know.DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-7126131564610858851.post-72545345581273159652009-03-13T16:33:00.000-04:002009-03-13T16:33:00.000-04:00Why can't I see the # of shareholders in the 10-k?...Why can't I see the # of shareholders in the 10-k? I must be blind, can you provide a page number?<BR/><BR/>Also, while I also own 749 shares in a few accounts, I've seen these situations blow up, as the company drastically underestimates the number of shareholders they'll have to cash out...Anonymousnoreply@blogger.com