posted
The same thing happened to NWMO just recently. They went through a reverse split (300 for 1) and if you had 100-30000 shares, you would get 100 shares post split. Pretty nice.
-------------------- dab Posts: 545 | From: North Hollywood | Registered: May 2006
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quote:Originally posted by SherriT: "No shareholder will be reduced below 500 shares"
Key word is REDUCED....
But, it should also read 500-1 to be a R/S....good grief!
so, whether a person has 1 share, or 501, or 1999, they should get 500 after right? interesting...
Posts: 2741 | From: Seattle | Registered: Feb 2005
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quote:Originally posted by SherriT: "No shareholder will be reduced below 500 shares"
Key word is REDUCED....
But, it should also read 500-1 to be a R/S....good grief!
so, whether a person has 1 share, or 501, or 1999, they should get 500 after right? interesting...
I would think if you have 500 or less, you would keep your same share count. At 1999, I would think you would get the split affected, taking you to about 4 shares post-split.
Hmmm...worth $75 to watch either way.
-------------------- Study before you buy, Sell before you think about it.... Posts: 3903 | From: Gulf Coast | Registered: Jun 2006
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posted
i can´t wait to see how this one plays out... after today´s closing price of .18 and a 1:500 rs this should open at 90.00 lmao i wanna see this!
Posts: 2473 | Registered: May 2006
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quote:Originally posted by tompom: i can´t wait to see how this one plays out... after today´s closing price of .18 and a 1:500 rs this should open at 90.00 lmao i wanna see this!
Going to be funny...what I don't like is that Monday is the Ex date, not today....
-------------------- Study before you buy, Sell before you think about it.... Posts: 3903 | From: Gulf Coast | Registered: Jun 2006
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1) who screwed up? 2) where's the extra day come in to play? at market open Monday the stock trades under the new symbol, and post-reverse split share structure
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
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Why would a company say no shareholder reduced below 500 shares, then reduce people with, say 2000, down to 4, not have screwed up? They intentionally give away that much? If so, boy, I am looking for the wrong kind of stocks....
It also generally takes them a couple of days to get the certs into the brokerages and get your share counts correct....recent case in point, SPNI to CMTN, except there was no clause about reducing shareholders.
Honestly, I dunno.
-------------------- Study before you buy, Sell before you think about it.... Posts: 3903 | From: Gulf Coast | Registered: Jun 2006
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posted
Why would someone with 2000 shares per-split go to 4 shares? They would be rounded up to 500, just like anyone who has 1 share, 500 shares, or 210,000 shares.
And I still don't see what you mean about an extra day.
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
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posted
They weren't specific and that is where the confusion lies. They said "no shareholder will be reduced to under 500 shares"
if I have 1, then I would have .002 shares. So, with that wording, why wouldn't I get 500?
Here is an example of a completely well worded R/S (and it also explains who pays for the rounded up shares)
"In order to effectuate the reverse split, each shareholder will be entitled to submit his or her old stock certificate (any certificate issued prior to the effective date of the recapitalization), to the Company’s transfer agent, Interwest Stock Transfer Company, 1981 Murray-Holliday Road, Salt Lake City, Utah 84117, and be issued in exchange therefor, one new certificate in the new name of the Company representing the consolidated common stock on a 1 for 20 basis, rounded up to the nearest whole share. **No shareholder who currently owns more than 100 shares will be reduced below 100 shares. The Company shall pay the cost of such issuance**, if presented to Interwest Stock Transfer Company, within 60 days of August 25, 2007. After 60 days from the effective date, all exchange requests must be accompanied by a check payable to Interwest Stock Transfer Company in the amount of $20 per certificate to be issued. The Company will not pay for any additional certificates requested or for the transfer of certificates into names other than those in which the certificates are in presently. To eliminate confusion regarding the consolidated common stock, the board of directors urges the shareholders to surrender their certificates for exchange; however, shareholders are not required to do so and for those shares held in street name no shareholder action is required to effect the reverse split. For shares held in street name, the shares will be automatically adjusted in the shareholder’s brokerage account."
you see, here, they specifically noted that you must have at least 100 shares pre-split. SWNE mad the mistake of omitting that info...
Posts: 2741 | From: Seattle | Registered: Feb 2005
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posted
You're correct, you should get 500 shares. Maybe I'm missing the confusion. It seems straightforward to me.
quote:Originally posted by skip: They weren't specific and that is where the confusion lies. They said "no shareholder will be reduced to under 500 shares"
if I have 1, then I would have .002 shares. So, with that wording, why wouldn't I get 500?
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
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quote:Originally posted by PCola77: You're correct, you should get 500 shares. Maybe I'm missing the confusion. It seems straightforward to me.
quote:Originally posted by skip: They weren't specific and that is where the confusion lies. They said "no shareholder will be reduced to under 500 shares"
if I have 1, then I would have .002 shares. So, with that wording, why wouldn't I get 500?
I take that wording more as if you have 500 or less, your share count would not change, based on the word "Reduced" in that context. It was written 1-500, but that gives you more shares with a cheaper PPS, not a reduction. That is my confusion. 500-1 would be a reduction.
(Edit: nm - I like the explanation posted of the good RS details...it was written 1 for 500 - same as I was thinking 500 shares would equal 1, except that you are not reduced below 500).
-------------------- Study before you buy, Sell before you think about it.... Posts: 3903 | From: Gulf Coast | Registered: Jun 2006
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posted
OKay, I see your confusion. Had they written it as "all shareholders will have at least 500 shares post-split", it would be what I THINK they are going to do.
As far as the 1:500 vs 500:1 they are doing a 1:500 split, in other words, your # of shares is reduced to 1/500 of what they were. a 500:1 split is a forward split, a 1:500 split is a reverse split.
Doubt I cleared that up though
Have a good weekend. I'll be working the whole time!
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
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quote:Originally posted by PCola77: OKay, I see your confusion. Had they written it as "all shareholders will have at least 500 shares post-split", it would be what I THINK they are going to do.
As far as the 1:500 vs 500:1 they are doing a 1:500 split, in other words, your # of shares is reduced to 1/500 of what they were. a 500:1 split is a forward split, a 1:500 split is a reverse split.
Doubt I cleared that up though
Have a good weekend. I'll be working the whole time!
You and skip did actually - happy to say I have been through only two splits thus far in my trading career...but I wasn't paying attention to the wording either.
Sorry you have to work - enjoy what you can!
-------------------- Study before you buy, Sell before you think about it.... Posts: 3903 | From: Gulf Coast | Registered: Jun 2006
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posted
If you have 501 now, you will have 500 on Monday. If you have 499 now, you will have 499 on Monday. Seems prety straight forward or did I miss something?
-------------------- If ignorance is bliss, why aren't more people happy? Posts: 2647 | From: MN | Registered: Feb 2006
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quote:Originally posted by cottonjim: If you have 501 now, you will have 500 on Monday. If you have 499 now, you will have 499 on Monday. Seems prety straight forward or did I miss something?
And if you have 1000 you'll have 500? What a deal.
-------------------- Let's Go METS!!! Posts: 3317 | From: CT | Registered: Dec 2006
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posted
Actually it'll probably be a month or more. These take forever. Just forget about it until you see a change in your account. I'd be shocked if it happened before July.
quote:Originally posted by SherriT: LMAO - well, that is a whole other way of looking at it. Sometime next week, we will have a different share count and be able to trade with it.
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
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quote:Originally posted by PCola77: Actually it'll probably be a month or more. These take forever. Just forget about it until you see a change in your account. I'd be shocked if it happened before July.
quote:Originally posted by SherriT: LMAO - well, that is a whole other way of looking at it. Sometime next week, we will have a different share count and be able to trade with it.
I dunno - SPNI to CMTN was fast - just a couple of days. DSKT/DSKA did take a few weeks. Those are the only two I have for comparison...
-------------------- Study before you buy, Sell before you think about it.... Posts: 3903 | From: Gulf Coast | Registered: Jun 2006
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posted
Yes...it can take a bit...NWMO took about 3 weeks, but worth it to turn $13.00 into 1060.00 First time I ever got a 500 bagger!
Posts: 781 | From: NE PA | Registered: Jan 2006
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posted
I play these type all the time. Does not matter how many shares you got over 500. The thing is say if you got 1500 shares then 1000 of them will go through the reverse split but 500 of them wont. Thats why everyone was buying 500 shares cause the reverse split wont affect 500. If you bought less than five hundred then thats exactly what you will have after the spit. Everyone that I have played like this have turned out very well. Takes about three to four weeks for the shares to show up in account. Some peeps sell right away some dont I have actually had one go up a couple of weeks after the shares showed up in my account.
Posts: 310 | From: Idaho | Registered: Jun 2004
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