Odd lot tenders

[matjone]

anyone using IB do these in multiple accounts?

 

I have two accounts I was thinking about doing them in, both at IB

[bskptkl]

So I have AMTD, IB and Fidelity accounts for myself, wife and kids - UTMA (except no IB accounts for them) - so I think 14 total accounts.

 

I am Apex at AMTD - so no charge for corporate actions. I pay $6 per trade. When you want to tender it is pretty simple using the messaging function on the AMTD website. No worries.

 

Fidelity only charges me $5 per trade (I had to work them to get that rate!), but I have to call in every time for corporate actions and most importantly - they have denied me a couple of times by saying Fidelity will aggregate positions across your linked accounts (which could effect odd lot status) . It cost me immensely on Norilsk Nickel as I had to blow out the positions in 4 accounts. Worse they told me on the last day - so I couldn't move money to AMTD and re-establish the position. I think that cost my kids 9k per account times 4. So who cares about the low commish if they do that to you every now and again.

 

IB is also great about corporate actions on their website and has low commissions, but commissions are per share, which is usually cheapest except when buying mass quantities of penny stocks which is what I tend to do most. I think they also charge minimum $10 per month which hurts if the account isn't very active. IB also charges for data feeds which I get elsewhere for free.

 

So for me, the combo of all three works well.

 

In responding to this I realize should really take the time to open more accounts at ETrade, etc. Why the heck not?

Norilsk Nickel was one of the best trades ever - I called it the stimulus plan for traders.

The PFE/ZTS trade was worth 3k early this year and I think PPG/GGC was worth 1500 this year. So it adds up. Any losses I have taken over the years (I'm sure there have been some - just can't remember any) have been miniscule in comparison.

 

In addition I try to keep my kids aware of what I am doing and involve them.  The AMTD accounts are all their own money from allowance and Christmas gifts etc. and started pretty small (I think my youngest started with $300). I am trying to infect them with the investor bug!

 

 

[jmoy911]

Corporate actions at Fidelity look real high at $38, were you able to talk them down?  ;)

 

Sounds like you have multiple IB accounts? I like IB for ease/ability to do corporate actions online, but the interface could use some work.

 

So I have AMTD, IB and Fidelity accounts for myself, wife and kids - UTMA (except no IB accounts for them) - so I think 14 total accounts.

 

I am Apex at AMTD - so no charge for corporate actions. I pay $6 per trade. When you want to tender it is pretty simple using the messaging function on the AMTD website. No worries.

 

Fidelity only charges me $5 per trade (I had to work them to get that rate!), but I have to call in every time for corporate actions and most importantly - they have denied me a couple of times by saying Fidelity will aggregate positions across your linked accounts (which could effect odd lot status) . It cost me immensely on Norilsk Nickel as I had to blow out the positions in 4 accounts. Worse they told me on the last day - so I couldn't move money to AMTD and re-establish the position. I think that cost my kids 9k per account times 4. So who cares about the low commish if they do that to you every now and again.

 

IB is also great about corporate actions on their website and has low commissions, but commissions are per share, which is usually cheapest except when buying mass quantities of penny stocks which is what I tend to do most. I think they also charge minimum $10 per month which hurts if the account isn't very active. IB also charges for data feeds which I get elsewhere for free.

 

So for me, the combo of all three works well.

 

In responding to this I realize should really take the time to open more accounts at ETrade, etc. Why the heck not?

Norilsk Nickel was one of the best trades ever - I called it the stimulus plan for traders.

The PFE/ZTS trade was worth 3k early this year and I think PPG/GGC was worth 1500 this year. So it adds up. Any losses I have taken over the years (I'm sure there have been some - just can't remember any) have been miniscule in comparison.

 

In addition I try to keep my kids aware of what I am doing and involve them.  The AMTD accounts are all their own money from allowance and Christmas gifts etc. and started pretty small (I think my youngest started with $300). I am trying to infect them with the investor bug!

[bskptkl]

Fidelity doesn't charge me for corporate actions.

[bskptkl]

American Oriental Bioengineering just filed saying they are going private and will cash out all holders of less than 500 shares at .50/shr.  It's at 31 cents . I think I am going to pass on it though.

 

Is anyone familiar with the company?

 

Trades on grey market - maybe that's why no permissions at IB?

 

I bought it in my Fidelity account last week. I had bids in for .30, bids were not reflected because grey market, then one day got filled at .28, 500 shares in all 4 accounts.

 

I know it's Chinese but trades for a fraction of book value and has a 25% owner who seems to want it. I bet it's a decent long. I put it on my "do more work" list. I have found a couple of investment ideas in my portfolio this way.

 

 

[jmoy911]

I have the same question. Anyone?

 

anyone using IB do these in multiple accounts?

 

I have two accounts I was thinking about doing them in, both at IB

[matjone]

I spoke to IB about doing this and they told me that it would be reviewed by compliance, and that the only way to know if it would pass is to roll the dice and try it.  I'm not going to though.

 

I am leery of the chinese companies after all the fraud of the past couple years.

[booth52]

SWZ, closed end fund, with a future Tender, no word yet on Odd lot tender priority, if any.

 

 

NEW YORK, Dec. 3, 2013 /PRNewswire/ -- The Swiss Helvetia Fund, Inc. (NYSE: SWZ), a non-diversified registered closed-end investment company, announced today that its Board of Directors has approved a tender offer to acquire, in exchange for cash, up to 15% of the Fund's outstanding shares of common stock at a price equal to 95% of the Fund's net asset value ("NAV") per share as of the close of regular trading on the New York Stock Exchange ("NYSE") on the business day immediately following the day the offer expires (the "Offer"). The Offer will commence on or about January 10, 2014, with the expiration date anticipated on or about February 7, 2014.

 

If more than 15% of the Fund's outstanding shares of common stock are tendered, the Fund will purchase its shares from tendering stockholders on a pro rata basis at a price of 95% of the Fund's NAV per share. Additional terms and conditions of the Offer will be set forth in the Fund's offering materials, which will be distributed to the Fund's stockholders on or about January 10, 2014.

 

http://online.wsj.com/article/PR-CO-20131203-910529.html?dsk=y

 

[oddballstocks]

Blue Ridge Real Estate Co. (BRRED) is having an odd lot specific going dark tender offer at $11.00 (versus $8.00 at current prices). They are also throwing a free $100 at anyone that tenders. This would offer a return a nice return of close to 50%. Unfortunately the record date was the prior to the announcement, so theres no way to get in the offer. However in this case (assuming there is enough volume) could a coalition of shareholders buy up 300 odd lots and force the company to buy them out? This might be utmost douchebag move as far as shareholder activism goes (It's like 300 Carl Icahns, but beating up tiny defenseless micro cap companies). This could be potentially replicated in a much cheaper format where everyone buys 50 shares each and pushes management to buy them out at an exorbitant price. Heck, even buying 10 shares each and then pushing for a buyout at 10x the current price could be possible as it might be cheaper for the company than the filing with the SEC. Of course the company could just do a reverse  forward split going dark move instead. This sounds so unethical though, almost like legal blackmail.

 

I know someone who tried that, I'll share the story below, but there is something to keep in mind.  The threshold is 300 for going dark, but the company must have more than 500 to be reporting.  If a company goes from 299 to 499 they still don't have to report.  You need to force them above 500, then they're obligated to report until they have less than 300.

 

This friend found a company going dark and attempted to force them to stay reporting.  They found out exactly how many shareholders would be needed as record holders to get above the 500 threshold.  They and friends and family purchased shares in numerous accounts and registered them in certificate form.  Then they contacted the company and said they didn't meet the requirement etc.  The company came back and said that they were contesting the legitimacy of the share ownership because husbands/wives/kids who held shares were all at the same address.  It turned out it wasn't worth trying to extort the company because the guys running this company were willing to play many more tricks than a group of shareholders vying for a few hundred dollars were willing to play.

[beerbaron]

Blue Ridge Real Estate Co. (BRRED) is having an odd lot specific going dark tender offer at $11.00 (versus $8.00 at current prices). They are also throwing a free $100 at anyone that tenders. This would offer a return a nice return of close to 50%. Unfortunately the record date was the prior to the announcement, so theres no way to get in the offer. However in this case (assuming there is enough volume) could a coalition of shareholders buy up 300 odd lots and force the company to buy them out? This might be utmost douchebag move as far as shareholder activism goes (It's like 300 Carl Icahns, but beating up tiny defenseless micro cap companies). This could be potentially replicated in a much cheaper format where everyone buys 50 shares each and pushes management to buy them out at an exorbitant price. Heck, even buying 10 shares each and then pushing for a buyout at 10x the current price could be possible as it might be cheaper for the company than the filing with the SEC. Of course the company could just do a reverse  forward split going dark move instead. This sounds so unethical though, almost like legal blackmail.

 

I know someone who tried that, I'll share the story below, but there is something to keep in mind.  The threshold is 300 for going dark, but the company must have more than 500 to be reporting.  If a company goes from 299 to 499 they still don't have to report.  You need to force them above 500, then they're obligated to report until they have less than 300.

 

This friend found a company going dark and attempted to force them to stay reporting.  They found out exactly how many shareholders would be needed as record holders to get above the 500 threshold.  They and friends and family purchased shares in numerous accounts and registered them in certificate form.  Then they contacted the company and said they didn't meet the requirement etc.  The company came back and said that they were contesting the legitimacy of the share ownership because husbands/wives/kids who held shares were all at the same address.  It turned out it wasn't worth trying to extort the company because the guys running this company were willing to play many more tricks than a group of shareholders vying for a few hundred dollars were willing to play.

 

What would happen if all that great ingenuity would go on to make something worthwhile for society... :-\

 

BeerBaron

 

 

[jmoy911]

Anyone have a discount broker recommendation that is not IB, Scottrade, Schwab? Preferably one that is low cost and allows tendering online or via email.

[LC]

Anyone have a discount broker recommendation that is not IB, Scottrade, Schwab? Preferably one that is low cost and allows tendering online or via email.

One of my accounts is with Sogotrade.com

$5 trades...or you can pre-purchase trades @ $3/each in lots of 5. Allow tendering via email, I believe for a $30 or $35 fee though.

[jmoy911]

Does anyone have both a Schwab and OptionXpress brokerage account? Was wondering if I tender the same shares in both accounts, if Schwab/OptionXpress would recognize the shares as odd lots or consolidate the shares and disqualify odd lot status (since Schwab owns OptionXpress). Anyone have an answer to this?

[LC]

I've heard stories both ways...some brokers picking up on this and others not...you could be the forum guinea pig if it's not an expensive tender :)

[jmoy911]

Might give it a shot for the next odd lot tender  ;)

 

I've heard stories both ways...some brokers picking up on this and others not...you could be the forum guinea pig if it's not an expensive tender :)

[bargainman]

Might give it a shot for the next odd lot tender  ;)

 

I've heard stories both ways...some brokers picking up on this and others not...you could be the forum guinea pig if it's not an expensive tender :)

 

Call them up and ask.  These things can change.  See my earlier note about td.

[bskptkl]

BPI sold 99 shares for $19.50

 

Hit my AMTD, IB, and Fidelity accounts today - all same ownership name in addition to my kid's accounts.

 

As an experiment, I opened 5 more AMTD accounts in my name and tendered, but was pro-rated which I halfway expected.

[DoddDisciple]

For those using IB, how do you structure your account so that one person has trading authorization on all subaccounts? Are you using the family office or friends & family option? Is there even a difference?

[Ghost]

BPI was a nice early Christmas gift, looking fwd to the next one. 

 

[matjone]

Did anyone look into the RMG networks situation?

[hyten1]

buy RMGNW and sell short some RMGN

 

what are the odds this sucker won't go through?

[gg]

There is at least some chance the deal wont go through, at which point these warrants (rmgnw) look pretty far out of the money and probably have minimal value. Also, the company is quite small, so very limited amount of shortable shares. Sounds great in theory, but I'd be afraid of shorting a stock of such a small company.

[matjone]

I was thinking of just going long the warrants and hoping the deal goes through and the stock doesn't decline too much.

 

People seem to think this is a good deal for the warrants.  Up 30%

[bskptkl]

American Oriental Bioengineering just filed saying they are going private and will cash out all holders of less than 500 shares at .50/shr.  It's at 31 cents . I think I am going to pass on it though.

 

Is anyone familiar with the company?

 

Trades on grey market - maybe that's why no permissions at IB?

 

I bought it in my Fidelity account last week. I had bids in for .30, bids were not reflected because grey market, then one day got filled at .28, 500 shares in all 4 accounts.

 

I know it's Chinese but trades for a fraction of book value and has a 25% owner who seems to want it. I bet it's a decent long. I put it on my "do more work" list. I have found a couple of investment ideas in my portfolio this way.

Update - they filed a PRE14 saying meeting will be March 14 - I figure cash out maybe 20 days later. It's now trading 10 cents. So could be a bagger in 6 weeks from here. Annualize that!

[matjone]

if it goes through.  I hope it does because I have some shares.  We'll see.

 

Annualized returns on these things are pretty nice sometimes.  Did anyone end up doing the RMGN warrant trade?  I was too scared that not enough people would tender.  I probably should have just went long the warrants.