jmoy911

No cost for IB Thanks for that. Any chance you know what fee Interactive Brokers might charge? Couldn't find it on their website.

http://deadline.com/2015/01/surprise-ceo-change-redbox-stock-fall-1201353752/

Very abrupt change to axe the CEO if it was just due to internal forecasted results.. my bet is on the latter guess.

Matjone or anyone else, why do you consider AOBI to be a total loss?

Wow, very interesting Hielko. GSOL 2014 tender offer: So odd lots as a percentage of the buyback increased from 0.12% in 2010 to 11.55% in 2014. I'm betting this was the last tender offer from GSOL with an odd lot provision... Morgan Stanley already eliminated their odd lot provision in all their CEF tender offers in 2013. So something to think about before you post in this thread or decide to do a post on SA for a few bucks...

No updates, still waiting... holding them at OptionsXpress.

It's treated as a short term gain. I'm not a tax-expert and this isn't legal advice but I believe it's treated just as you'd have sold the shares in the open market. Meaning if you tender shares that have been held for at least 1 year, you get long term cap gains tax rate and if it's less than 1 year then it's short term capital gains tax rate. In no case it's dividend though.

Good to know, thanks matjone.

Has anyone received a payout yet for the AOBI offer?

Isn't that always the case? ;D I bought for $10.29 , easy $70 (of course it drops after I buy).

Did you sell 2/3's of OUTR post tender when it dropped or did you sell it on the lead up to the tender by date? I do remember seeing that some of the management tried to tender some stock at a price of $71-72 but dont remember if that was a material amount of stock for them.

Agreed, I have notice this too for the tender offers that I've participated in. There have been exceptions to this as well, BPI being one of them (Tendered at 19.50, currently in the ~$14). There's some temptation to hold on, but goes against my strategy to buy for the purpose of tendering. Have you held on for higher gains? and if so, how do you differentiate the lemons like BPI/OUTR with a HAL?

We'll know soon enough. It could go either way. The same thing had happened with CXP. The tender was for $22 - $25. At the day of the tender offer expiration the stock closed at $22.50, but the offer still went through at $25.

Speaking of odd lot tenders and modified dutch auctions, look at OUTR. Today was the last day to tender and the stock closed at the lower end of the range. Won't know the tender price until Monday. Last year, Chamber Street properties (CSG) had a dutch-tender which went through at the lower end of the offer. From the limited number of dutch odd-lot tenders I have done, my observation is that if the stock trades within the range of the offer, there is a higher probability that it will go through at the upper end, if however, the stock trades below the offer, there is a chance of the offer going through at the lower end. However, like everything else, nothing is guaranteed and YMMV. For dutch tenders, I typically try to buy it near the lower end of the offer and tender it at the lowest tender price, so that typically my upside vs downside is 4:1 or 5:1 e.g If the dutch tender offer is say between $95 and $100 and the stock is trading in that range, I try to buy it at around $96 or lower ( if possible, otherwise I might just give it a pass) and then tender it for $95, so that I end up with a possible ~$100 loss vs a ~$400 gain ( provided of course, the tender goes through, which is a risk in itself).

Very nice gains on very little work siddharth18. Do you have multiple accounts with the same broker? If so, are they all different types of account (regular brokerage, Roth IRA, Traditional IRA, etc.)?