• The acquired company will become a subsidiary of Petel Incorporated • The company will be acquired into the group via a like-for-like, 1-for-1 share exchange. • All existing Petel Incorporated shareholders at date of record will receive one share in the newly acquired company for each Petel Incorporated share they own, with a strike price of £0.75 ($1.50). • Further details and the identity of the acquisition will be published week commencing 11th June 2007.
PTEL closed at .26 last Friday. The dividend strike price is worth almost 6 times current share price.
posted
Did you see the size of the dividend? It is unreal to pass up IMO. Like you, i have already made quite a bit off this stock, and if this dividend comes through, this could be the most i made off any stock ever.
I am loving this stock also. Hopefully it hits over a buck for us.
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posted
Petel Incorporated Division SexQube.TV 800% Ahead of Registrations Target PR Newswire - June 06, 2007 9:01 AM ET
Related Quotes Symbol Last Chg PTEL Trade 0.38 +0.02 Quotes delayed at least 15 minutes
Petel Incorporated today revealed that SexQube.TV, the world's first free-to-air, adult, broadband television channel is 800% ahead of its registrations target just one month after launch.
This news is accompanied by the signing of a new content agreement with Bordellonoir and follows the announcement of a US$207M stock dividend.
SexQube.TV has exceeded forecasted viewing figures from the day of launch, and the Company is confident that it will achieve forecasted first year revenue of US$8.1M ahead of schedule. All indications are that the Company is set to exceed the targeted 85% year-on-year growth predicted by the Board.
Petel Incorporated COO Philip Evans commented "The month following our Pink Sheets debut has seen the Company deliver success after success. We know that we only need one in twenty viewers to purchase from SexQube.TV to hit our revenue targets, so today's news is very encouraging. We are pleased that the hard work we have invested over the past year is paying off and delivering rewards to the Company and its shareholders. This is only the beginning of our success story and we look forward to continually delivering superb news and growth well into the future."
Latest news: SexQube.TV - SexQube.TV US$1M marketing campaign started this month. - Easy Pink Productions appointed to produce free-to-air content. - Casting for The Sex Shop Show, The Sex Doctor and the Movie Show completed and all three series in production.
Bordellonoir
- Agreement to deliver a further 4,000 titles from 25 studios to be digitized and added to SexQube.TV's Video-on-Demand library.
- Each movie will be available at only US$9.99 per 48 hour rental.
Petel Incorporated's five year forecasts and business plan are included in the Corporate Overview, published on the Investor Relations page at www.petel.co.uk
For more information please visit www.petel.co.uk Or email enquiries*petel.co.uk
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posted
Reminder, not sure if anyone is interested in free dividend, but today and Friday are the last days to buy in before the dividend declaration day set on this coming Monday for PTEL.
No cost, free shares in publicly traded company. However many PTEL shares you will own on monday, you will get EXACTLY that many shares in company to be aquired on another exchange.
posted
So if I buy 1000 shares of ptel I will not only have that 1000 but also 1000 more of a different company for free as long as I buy by tomorrow?
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Yes, today or tommorrow. And it is 1 for 1. Here is what will happen:
Current Petel Owners get a share of the new company for each share they own of petel. So 138 million shares of the new company will be given to current Petel owners.
What does the other company receive? The other company shareholders (about 5 million shares outstanding) get 1 share of Petel for each share they hold of the current company. So the very small downside is that petel (PTEL) will dilute by 5 million and go from 138 million shares outstanding to 143 million outstanding. But we also get 138 million shares of the newly acquried company.
The end result will be that there are 143 million shares outstanding of petel, and 143 million shares outstanding of the newly acquired company, two different ticker symbols (PTEL and ????).
Free shares! Now, i have no clue, and no one will know until monday, what the new company exactly is. The article states a strike price of 1.50 - which as we all know, wont hold up very long at all. Im sure everyone and their mothers and daugthers will sell the new dividend immediately for free cash. Maybe not after finding out what it is, but I would guess that the price of the dividend will quickly drop from strike price of 1.5 to below a dollar, and maybe below .50 - but its free, so whatever we get from it is money in the bank.
posted
that is a good question bazooka - i trade through ameritrade, and i called ameritrades 'reorg and housekeeping' and they stated something like, if they have US adr's it wont cost anything, but if they do not, then it will cost extra depending on what exchange they are listing on.
I think we will learn more on monday as far as what company, exchange etc...
But you could be right, if you are buying 1k shares or less, it may not be worth it it is going to cost 100 bucks to sell it on a foreign exchange, but you will need to check with your financial service and run this through them. They will have a better idea of what additional costs, if any, you may incur to sell these shares.
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posted
Okay, I just gotta step in here. You're ssuming WAY too much based on what is going on here.
Think of it this way:
PTEL is "worth" $0.37 x 138million, or $51million
The new company, (we'll call it Company B) is "worth" 5 million shares x $1.50, or $7.5million.
Your "very small downside" is that they dillute 5 million shares, thus dropping the per share amount from .37 to .36 ($51million/143million shares), and that is correct.
Your second piece is the big problem.
Company B is worth $7.5million. All of a sudden, there are 143million shares of it, as opposed to 5million. So the price goes from $1.50 to about $0.05. Not "maybe under $0.50". Company B is not suddenly worth $75million instead of $7.5 million, which is what it would take to have a $0.50 PPS.
Despite the impression that you are under, it is NOT "free money". Sorry to burst your bubble.
Now, that being said, you may make money on it. I have seen plenty of times where the math shows what I have just described but the prices don't adjust to as low as would be expected. I can't say for sure if this will be one of those times, but I can say for sure that you'd be hearing a lot more about this from more experienced traders if it was one of those situations.
quote:Originally posted by stockpicker23: Yes, today or tommorrow. And it is 1 for 1. Here is what will happen:
Current Petel Owners get a share of the new company for each share they own of petel. So 138 million shares of the new company will be given to current Petel owners.
What does the other company receive? The other company shareholders (about 5 million shares outstanding) get 1 share of Petel for each share they hold of the current company. So the very small downside is that petel (PTEL) will dilute by 5 million and go from 138 million shares outstanding to 143 million outstanding. But we also get 138 million shares of the newly acquried company.
The end result will be that there are 143 million shares outstanding of petel, and 143 million shares outstanding of the newly acquired company, two different ticker symbols (PTEL and ????).
Free shares! Now, i have no clue, and no one will know until monday, what the new company exactly is. The article states a strike price of 1.50 - which as we all know, wont hold up very long at all. Im sure everyone and their mothers and daugthers will sell the new dividend immediately for free cash. Maybe not after finding out what it is, but I would guess that the price of the dividend will quickly drop from strike price of 1.5 to below a dollar, and maybe below .50 - but its free, so whatever we get from it is money in the bank.
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