posted
anytime there's an ex-date, is the *day before* the ex-date...but as I always tell folks, if you don't understand that or want rock-solid confirmation, just call NASD and verify it--I've done that several times, myself.
posted
Tex, on CCMS, do you think that ex-dividend date might be a typo and really should be 8/01/2007? I've never heard of a ex-div date being after the payout. It doesn't make sense.
Since the 8K lists the dividend as payable to shareholders of record as of August 3, 2007, an August 1 Ex-div date would work. So you'd have to get in tommorrow, right?
Also, what does "proceeds sale of essentially all assets mean"? Sounds worrisome. Like you'll get the .25 dividend, but then the .35 stock becomes worthless??
Jo
-------------------- "Great Day for Up!"....Dr. Seuss Posts: 3387 | Registered: Mar 2006
| IP: Logged |
posted
Jo, at one point there was a question about what to do with the proceeds and whether shareholders would benefit. The dailylist seems to evidence that they decided to "share the wealth."
lol, many times these "don't make sense." Is why we play 'em... gotta do your due, as dadog used to say--but with these you don't have to be so quick about it...
(boy, howdy--you packed a lot of questions into one post )
doubt it's a "typo" ... saw the same thing with TLHO recently--it happens...the thing to remember is companies screw this stuff up all the time. Often times, they're *trying* to screw investors; sometimes it backfires.
Is this a backfire? shoot, I dunno. Just ran across it, and posted it... TLHO was an immediate moneymaker... not a bunch percentage-wise, but pretty "safe."
Is this? can't answer--haven't even read the filing, just saw the divvy and checked the pps/trading range...
posted
when divys are 25% of stock price or greater the exdate is day after divy. doesn't apply to these junk stocks but in the real world they do this because of margin requirements. ie, stock goes ex for 25% of the stock price and drops on the ex date, you could be subject to a margin call because you would't recieve the funds for a couple of weeks normally. so they just adjust the dates for these large percentage divs. you can search google for the NASD notice , i can't remember the notice number
quote:Originally posted by Jo4321: Tex, on CCMS, do you think that ex-dividend date might be a typo and really should be 8/01/2007? I've never heard of a ex-div date being after the payout. It doesn't make sense.
Since the 8K lists the dividend as payable to shareholders of record as of August 3, 2007, an August 1 Ex-div date would work. So you'd have to get in tommorrow, right?
Also, what does "proceeds sale of essentially all assets mean"? Sounds worrisome. Like you'll get the .25 dividend, but then the .35 stock becomes worthless??
posted
I have come across plays like this in the past. It gets special treatment because the Divy is 25% or greater than the PPS. In case like this the Ex-Divy is after the pay date. So that people don't get both.
"Dividends Or Distributions 25 Percent Or Greater Than Security Value
The second method, under subparagraph (b)(2) of Rule 11140, provides that for dividends or distributions that are 25 percent or greater of the value of the subject security, the ex-date shall be the first business day following the payable date. For example, if an issuer has announced August 10 as the record date and August 31 as the payable date, then the ex-date will be September 1, the first business day after the payable date. In this example, September 1 is the day on or after which a buyer would purchase the security without the dividend and, therefore, the day on which the price of the stock is adjusted downward. 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. Indeed, because the value of the security on August 15 has not yet been adjusted downward to reflect the dividend distribution, the seller in this example would be unjustly enriched by keeping the dividend. The seller would have received the value of the dividend twice: first, as fully reflected in the unadjusted price of the stock on August 15; and secondly, as subsequently paid by the company to record date holders."
In essence, in order to receive the Divy you will have to hold until the Ex-Divy date. Also on the Ex-Divy date the PPS will adjust downward by the amount of the Dividend.
Hope this helps.
Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
| IP: Logged |
posted
What Will Happen to Champion After the Asset Sale? After the completion of the Asset Sale, we intend to maintain our corporate existence for some period of time. Although there are no specific plans, we expect that we may seek to find a private, operating company with which to combine. In the event that we can find and complete any such transaction, it is generally to be expected that our current owners, in the aggregate, would have a significantly reduced equity ownership of the surviving company, which could be in the range of five percent to ten percent. There can be no assurance that we can or will identify any business with which to combine, nor that any such transaction could be completed. What Factors Were Considered by Management and Our Board of Directors in Deciding to Sell Substantially All of Champion’s Assets? Management and our Board of Directors considered a number of factors before deciding to execute the Asset Purchase Agreement, including, but not limited to, the following: • The anticipated depletion of working capital and the projected lack of cash flow to sustain operations;
• The terms and conditions of the proposed Asset Sale; and
• The belief that the offered purchase price by FleetTALK is fair.
Will Our Stockholders Receive Any of the Proceeds from the Asset Sale? Stockholders will not immediately receive any of the proceeds from the Asset Sale. FleetTALK is paying us cash for our assets, and due to recent developments we may retain the proceeds for a period of time while we seek to find a private, operating company with which to combine or we may distribute a substantial portion of the remaining proceeds. Uncertainties as to the amounts we will finally realize for our assets, the ultimate amount of our liabilities, and the time that will be needed for this process to be completed make it difficult to predict any amount that would be available for such distribution to stockholders and, if so, the timing of any such distribution. How Is the Purchase Price for the Asset Sale Being Financed by FleetTALK? FleetTALK escrowed the $2,050,000 purchase price in an escrow account to be released to us upon the receipt of FCC approval of the license transfers. FCC approval was obtained on May 1, 2007. What Rights to Stockholders Have to Dissent From the Asset Sale? You do not have the right under Delaware law to dissent from the Asset Sale or to seek appraisal of your shares.
If I'm reading this correctly, CCMS will become a shell once the distribution is made. Apparently they did not find a suitable merger candidate. It does appear to be a clean shell so a Reverse Merger could happen at some point in time but until that time it will be a shell.
Just my take
Wally
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
| IP: Logged |
posted
Tex, I'm sitting this one out. Look at he anemc volume on this puppy. Like $15,000 total traded this YEAR (unless I'm looking at somethign wrong). You'd probably end up stuck with it post ex-date if you buy now.
I usually play these, but this one has higher than average risk, IMO.
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
posted
Not a divvy perse, but according to the recent PRE-14 for HLDI, they're going to buy out anybody owning less than 1000 shares at .30. Not a foregone conclusion, but based on my scant DD, it looks like legit. Harold's is a real company (I know someone who shopped there once).
Only one snafu- no date was set in the PRE-14. So, it could be a while. I sat on the bod for a couple days and they gave me 900 shares at .18. Seems like some low-key fun...
posted
god what a terrible post I had above. poor spelling and grammar. It's like it was proof read by Borat...
I tried in 4 accounts Tex, lol- it only filled in one before they jumped the bid. Guess I was bidding against myself.
Like I said, still no dates announced, so they may all fill eventually. They're all GTC's, so we'll see...
Posts: 949 | From: Little Rock, AR | Registered: Dec 2005
| IP: Logged |
posted
Just a heads up bilgert, I've done 2 or 3 of these, and NONE of them came through. Shares still sit in my account and broker says "we'll cash you out when the company sends us the money." bast*rds
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
quote:Originally posted by PCola77: Just a heads up bilgert, I've done 2 or 3 of these, and NONE of them came through. Shares still sit in my account and broker says "we'll cash you out when the company sends us the money." bast*rds
what's the diff between "these" and, say, TLHO? As i recall, you made immediate profit w/o holding near as long as I did...
posted
Sorry, should have specified. I meant "these" being the cash buyout of small holders. Divi plays I love!
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
| IP: Logged |
posted
Well I have the exact opposite experience- I'm 2 for 2 Pcola- but I've heard a lot of people have had your experience. The cash-outs did take about 2 months though after the r/s occured though.
I'm pretty comfortable with this one since HLDI is not some fly by night operation.
Posts: 949 | From: Little Rock, AR | Registered: Dec 2005
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Big Grin]](biggrin.gif)
)
