Allstocks.com's Bulletin Board Post New Topic  Post A Reply
my profile login | register | search | faq | forum home

  next oldest topic   next newest topic
» Allstocks.com's Bulletin Board » Reverse & Forward Split Notification and Information » 01/11/10

 - UBBFriend: Email this page to someone!    
Author Topic: 01/11/10
*Mag*
Member


Icon 1 posted      Profile for *Mag*     Send New Private Message       Edit/Delete Post   Reply With Quote 
VVDL 
Vivid Learning Systems, Inc. Common Stock 
VVDLD 
Vivid Learning Systems, Inc. New Common Stock 
1-1000 R/S immediately followed by 1000-1 F/S; cashing out fractional shares at 0.60 per share.

--------------------
^..^

Posts: 3897 | From: New York | Registered: Jan 2004  |  IP: Logged | Report this post to a Moderator
bilgert
Member


Member Rated:
4
Icon 1 posted      Profile for bilgert     Send New Private Message       Edit/Delete Post   Reply With Quote 
yesssss [Smile]
Posts: 949 | From: Little Rock, AR | Registered: Dec 2005  |  IP: Logged | Report this post to a Moderator
T e x
Member


Icon 1 posted      Profile for T e x     Send New Private Message       Edit/Delete Post   Reply With Quote 
too bad--I went on service call right before this came out.

--------------------
Nashoba Holba Chepulechi
Adventures in microcapitalism...

Posts: 21062 | From: Fort Worth | Registered: Apr 2005  |  IP: Logged | Report this post to a Moderator
bilgert
Member


Member Rated:
4
Icon 1 posted      Profile for bilgert     Send New Private Message       Edit/Delete Post   Reply With Quote 
I bought a taste of this in a couple accounts when the PRE-14 was filed in August or so and it was trading at about .17. At one point you could have gotten this bad boy around .12 or so.

I bought it in the rest of my back up accounts near EOD yesterday when this hit the daily list. I was shocked to see this readily available at .24 at EOD. Now the waiting begins.

Posts: 949 | From: Little Rock, AR | Registered: Dec 2005  |  IP: Logged | Report this post to a Moderator
bilgert
Member


Member Rated:
4
Icon 1 posted      Profile for bilgert     Send New Private Message       Edit/Delete Post   Reply With Quote 
Let the games begin.... one of the responses to three (3) inquiries.

Dear Investor:
Thank you for your e-mail.

Per the terms of the reorganization, you had to have been a holder of VVDL as of August 6th, 2009 to receive the $.60 per share. You did not purchase the shares until August 14th, 2009.If you need further clarification, please contact your local Scottrade office for assistance. The staff in the local office will be glad to help you. You may obtain the telephone number of your local Scottrade branch office through our home page in the Branch Locator.
Sincerely,

XXXX XXXXXXXXXXXX
National Service Center
Scottrade Inc.
**************************************
My response below.

I believe this is incorrect. The record date is August 6, 2009. However, the ex-dividend date is 1/12/2010. Please see the link below. I have participated in many of these forward split/reverse split cashout opportunities and have found that many people (and often the company themselves), confuse the two. Please follow up on this matter and let me know how you plan to proceed.

http://otcbb.com/asp/dividend.asp?sym_id=VVDL&dDate=1/12/2010&sDateType=ex_date

Posts: 949 | From: Little Rock, AR | Registered: Dec 2005  |  IP: Logged | Report this post to a Moderator
T e x
Member


Icon 1 posted      Profile for T e x     Send New Private Message       Edit/Delete Post   Reply With Quote 
stay on 'em... [Big Grin]

--------------------
Nashoba Holba Chepulechi
Adventures in microcapitalism...

Posts: 21062 | From: Fort Worth | Registered: Apr 2005  |  IP: Logged | Report this post to a Moderator
bilgert
Member


Member Rated:
4
Icon 1 posted      Profile for bilgert     Send New Private Message       Edit/Delete Post   Reply With Quote 
Round 2:

Thank you for your e-mail.

The ex-date for the stock dividend(the forward portion of the reverse and forward split) was 01/12/2009. However, to receive the cash of $.60 per share, you had to be a stockholder of record on 08/06/2009 and own less than 1,000 shares. Therefore, since you purchased your shares on 08/14/2009, you received shares instead of the cash payment. These are the terms of the reorganization per the DTCC(the Depository Trust and Clearing Corporation). Please feel free to contact the company's investor relations department to confirm the August 6th date.

If you need further clarification, please contact your local Scottrade office for assistance. The staff in the local office will be glad to help you. You may obtain the telephone number of your local Scottrade branch office through our home page in the Branch Locator.

Sincerely,

XXXXXXXXXXXXXX

National Service Center
Scottrade Inc.

My response:

As you can see on the link I provided earlier, not only was an ex-dividend date of 1/12/2010 declared, but the text for the terms of the cashout did not restrict the terms to a particular purchase date. It merely stated that fractional shares would be cashed out.

I believe the DTCC is incorrectly allowing VVDL to restrict the cashout. I will be contacting the DTCC directly, but I would also like your help, as my broker to support my right to receiving cash for my fractional shares.

Thank you.

Posts: 949 | From: Little Rock, AR | Registered: Dec 2005  |  IP: Logged | Report this post to a Moderator
bilgert
Member


Member Rated:
4
Icon 1 posted      Profile for bilgert     Send New Private Message       Edit/Delete Post   Reply With Quote 
This is such horse****. I'm calling the DTCC later today.

Dear Client:
Thank you for your e-mail.

You are correct that the ex-dividend date was 01/12/2010. However, this does not apply to the cash payout. The ex-date only applies to the split that occurred. The date applicable to receive the cash distribution was 08/06/2009. Our Reorganization Department confirmed the details. The DTCC provides all brokerages of the terms of each reorganization. The DTCC provided us with the information that the record date for the cash payout was 08/06/2009. The DTCC is the government agency responsible for these types of transactions and we comply with the terms that the DTCC provides us. Again, I would recommend contacting the company's investor relations department if you need further clarification and to confirm the record date of 08/06/2009. The reorganization was applied to your account according to the DTCC terms that were provided to Scottrade.

Please let us know if we may be of further assistance.

Sincerely,

XXXXXXXXXXXXXXXXXX
National Service Center

Scottrade Inc.

Posts: 949 | From: Little Rock, AR | Registered: Dec 2005  |  IP: Logged | Report this post to a Moderator
T e x
Member


Icon 1 posted      Profile for T e x     Send New Private Message       Edit/Delete Post   Reply With Quote 
It is *total* horse****. In one roundup, the DTC told Choicetrade to restrict the roundups to the "participant" level. In other words, don't send to the beneficial owners. Buhloney--there's no such thing as "participant level" in the regs...

Another thing: Scottie is *way* off base declaring DTCC as a "government agency." It's a private business comprising the major broker-dealers. They have no business getting involved in interpreting ex-dates.

Lemme look up something...

--------------------
Nashoba Holba Chepulechi
Adventures in microcapitalism...

Posts: 21062 | From: Fort Worth | Registered: Apr 2005  |  IP: Logged | Report this post to a Moderator
T e x
Member


Icon 1 posted      Profile for T e x     Send New Private Message       Edit/Delete Post   Reply With Quote 
This is from a NASD notice to brokers, which to my knowledge has never been superceded:

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p003 997.pdf

This is from the sections on divvies < 25%:

quote:
Thus, in this example, Tuesday is the day on or after which a buyer would purchase the security without the dividend and the seller of the security would keep the dividend. If the sale occurred on Monday, a day earlier, the seller would not keep the dividend.
This is from the following section on divvies > 25%:
quote:
In this example, a seller of the security on August 15, even though the holder of record to receive the dividend, would have to relinquish the dividend to the buyer.
It doesn't matter to us "how" NASDAQ determines the ex-date (two days before, etc); all we can go by is that they *do* determine the ex-date and cause it to be published on the daily list.

And, clearly, as emphasized in the notice to brokers, the ex-date prevails.

It's not the stick-their-noses-into-our-business DTCC that prevails--their job is to manage delivery, NOT interpret filings.

You might try this, too, as an alternative to filing a complaint against the broker:

http://www.finra.org/web/idcplg?IdcService=GET_PROBLEM_PAGE&siteId=www.finra.org &siteRelativeUrl=/AboutFINRA/CorporateInformation/OfficeoftheOmbudsman/index.htm

--------------------
Nashoba Holba Chepulechi
Adventures in microcapitalism...

Posts: 21062 | From: Fort Worth | Registered: Apr 2005  |  IP: Logged | Report this post to a Moderator
   

Quick Reply
Message:

HTML is not enabled.
UBB Code™ is enabled.

Instant Graemlins
   


Post New Topic  Post A Reply Close Topic   Feature Topic   Move Topic   Delete Topic next oldest topic   next newest topic
 - Printer-friendly view of this topic
Hop To:


Contact Us | Allstocks.com Message Board Home

© 1997 - 2013 Allstocks.com. All rights reserved.

Powered by Infopop Corporation
UBB.classic™ 6.7.2

Share