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I did pull the trigger and sell 700 shares of OSTK and buy 700 shares of the B series preferred, pocketing the $7 per share difference. With the B shares you don't even have to deal with the goofy alternative exchange or pay any commission. (The fact that I think the alternative exchange is goofy tells me that maybe I shouldn't be holding Overstock at all, but do I listen?)
Share price went under 12 cents today.
The share price has gone down quite a bit. Is it because some people know something bad, such as the demo is not going well, or are people just getting bored while no news is generated.
So what stops you from selling your OSTK shares and using the proceeds to buy a greater number of OSTKO? (I'm not doing it either, so I'm not criticizing.)
I am already overweighted on Overstock, but on Wednesday I bought another 100 shares of OSTKO. The price was $9.35, which was something like 40% below the price of OSTK. Who says the markets are rational? So the rational thing for someone like me to do would be to sell my OSTK and put the proceeds into OSTKO (and maybe also OSTBP), but it's hard to make the leap. If one is staying for the long haul then this is the way to go. The one fear is that if you do decide to bail out, it would be a lot easier with OSTK.
I wonder how much other copper producers are affected by the acid shortage.
What news are you referring to?
I just bought 50 shares of OSTKO on dinosaur for $9.10/share. The current price for OSTK is $17 and change. So if you are a true believer you should take advantage of this situation. On the other hand, the fact that I was able to do this is an indication of a failure of the digital dividend.
https://finance.yahoo.com/news/overstock-fights-wall-street-over-194819767.html
Bloomberg) -- Overstock.com Inc.’s stock price has been on a tear during the coronavirus crisis, but behind the scenes the online retailer is locked into a pitched battle with Wall Street over its controversial plans to issue a first-of-its-kind digital dividend.
The fight stems from Overstock’s demand to control where the new securities are allowed to trade, rather than letting investors buy and sell them wherever they choose. Earlier this month, the company sent a letter to a number of financial firms reminding them that it expects all trading in the dividend to take place on a venue called tZERO, which Overstock owns.
The retailer’s lawyers reiterated the requirement during a conference call with brokers that industry executives say quickly devolved into threats of lawsuits, though Overstock disputes that any such warnings were made. The tensions are coming to a head just as the dividend, which will give investors one preferred share for each 10 common shares they own, is set to be issued on Tuesday. Overstock says some records for the security will be be stored on the blockchain but maintains that it is not a new virtual currency.
Read More: All About Bitcoin, Blockchain and Their Crypto World
If Overstock’s dividend plan proves successful, the implications for U.S. markets could be significant. More companies may decide to dabble in digital assets or add restrictions to their shares, especially if they find that doing so gives them more sway over their investors. On Wall Street, brokerage firms and exchanges are loath to see the launch of any security that raises the specter of a monopoly and could cut them out of trading and listing fees.
SEC Scrutiny
The question of whether a company can dictate where investors are allowed to sell their stock has attracted attention from the U.S. Securities and Exchange Commission, which has long been focused on ensuring that shareholders get the best execution for their trades at low prices. While the regulator signed-off on Overstock’s dividend following an extensive review, it’s aware of the dispute around tZERO and may weigh in, said people with knowledge of the matter.
“This raises fundamental questions about the rights of shareholders,” said James Angel, an associate professor at Georgetown University’s business school who owns some Overstock shares and follows the company closely.
In an emailed statement, Salt Lake City-based Overstock said that it’s perfectly legal for the company to restrict trading to its own platform, adding that it hopes market participants adhere to the mandate. “If not, like any security issuer, we will take necessary action to ensure compliance with the terms of the security,” the company said.
SEC scrutiny of Overstock’s dividend isn’t new. The company has said that it received a subpoena from the regulator last October demanding documents about the security, as well as the stock trading plans of Overstock executives and directors. In a May 7 regulatory filing, the company said it is fully cooperating with the request.
An SEC spokeswoman declined to comment.
400% Jump
Overstock’s dustup with Wall Street comes amid a turnaround for the company, which is benefiting from homebound consumers needing to shop from their couches. Its shares have jumped more than 400% since mid-March, making the company one of the U.S.’s top performers. The rally follows a 48% drop for Overstock last year and a 79% plunge in 2018.
Overstock slid 11% to $15.19 in New York trading Monday, its biggest daily decline since April 22.
Broker and exchange complaints about the digital dividend are wide-ranging. They say limiting trading to one venue will hurt liquidity, making it difficult and expensive for investors to sell their shares. The one brokerage doing business with tZERO, called Dinosaur Financial Group, plans to charge a 1% fee, according to an April news release. That’s a stark contrast to the free trades offered by many retail brokers. Dinosaur is run by Glenn Grossman, whose son is a tZERO executive.
Overstock said it’s not unusual for professionals in the financial industry to have family ties. A spokesman for Dinosaur declined to comment.
Overstock’s dividend already has a trading symbol, OSTKO. There has been some buying and selling ahead of its official issuance, but those transactions will settle after the shares are given out.
I just received instructions from Schwab for dealing with the digital dividend. It seems you do in fact have to set up a Compushare/Dinosaur account to trade the shares. It looks like a particular hassle if you have the shares in an IRA.
I sent an email to investor relations a few days ago asking them to confirm my understanding that neither the A nor B series preferred shares are callable. They finally responded yesterday and did confirm what I thought. So correct me if I'm wrong, but the preferred shares are basically identical to the regular shares, plus they pay a small (approximately 1% right now) dividend. And yet, the B shares have consistently had a lower share price for as long as I've been looking at them (about 8 months). Anyway, it will be very interesting to see how the share prices of the 3 issues compare once the A shares are distributed on Tuesday.
If this does take off, then it will forever be a mystery why they were ever associated with MGX Minerals. But obviously there is competition in this space, so we can't count our chickens. What is the name of the other company you mention?
It just seems like 1) an increase in business due to covid should have been expected, and 2) that increase would be largely temporary.
It looks like someone put in an order for 100k shares, and it got filled in pieces. In all it totals something like $600. As to your question, um, no, I had not checked the ASPT activity yesterday. Would that really be so surprising?
Is the general understanding then that the recent share price rise is all to do with the retail performance (plus general market conditions)?
I should have added that nevertheless when you look at other articles that author has written, they seem like straightforward news stories. But it wouldn't be the first time someone in a major financial news organization engaged in funny business.
iworkalone, don't call yourself a loser!
That is a weird article to appear on Bloomberg. It feels more like an advertisement for CleanTeQ disguised as news.
It says up to 1 million shares would be issued, but looking on Schwab it doesn't say how many shares are issued. OSTKO is now tradeable through normal brokerages, which I believe was needed in order to get the dividend okayed by the authorities. Do you happen remember when it became tradeable? So we don't need Dinosaur any more, unless you want tZERO tokens.
The price of this stock seems unusually stable for a penny stock.
Here are the last 30 trades, as taken from https://quotes.freerealtime.com/quotes/aspt/TimeAndSales
Is anyone still playing around with this? I see that Bob Lembo is still at it - http://www.aladdinseparation.com .
05/04/2020 15:21:39 EDT 0.0019 3233 OTCPK
05/04/2020 14:26:37 EDT 0.0017 100 OTCPK
05/04/2020 10:53:05 EDT 0.0019 75000 OTCPK
05/04/2020 10:34:42 EDT 0.0019 1666 OTCPK
04/30/2020 14:12:37 EDT 0.0019 6666 OTCPK
04/29/2020 14:30:18 EDT 0.0019 1000 OTCPK
04/29/2020 14:30:10 EDT 0.0019 1000 OTCPK
04/22/2020 13:32:34 EDT I 0.0019 6 OTCPK
04/21/2020 9:30:16 EDT 0.0019 14764 OTCPK
04/13/2020 15:06:53 EDT 0.0019 16666 OTCPK
04/13/2020 15:04:27 EDT 0.0019 6235 OTCPK
04/08/2020 15:12:08 EDT 0.0019 3333 OTCPK
04/08/2020 11:13:57 EDT 0.0019 267 OTCPK
04/06/2020 12:41:53 EDT I 0.0057 16 OTCPK
03/31/2020 9:56:47 EDT 0.0019 1667 OTCPK
03/31/2020 9:30:04 EDT 0.0005 15001 OTCPK
03/19/2020 15:00:19 EDT 0.0019 500 OTCPK
03/19/2020 12:40:12 EDT 0.0019 3333 OTCPK
03/18/2020 12:28:39 EDT 0.0019 140 OTCPK
03/18/2020 10:44:35 EDT 0.0018 200 OTCPK
03/16/2020 10:47:34 EDT 0.0017 22500 OTCPK
03/12/2020 10:39:00 EDT 0.0017 500 OTCPK
03/12/2020 10:11:30 EDT 0.0017 1666 OTCPK
03/06/2020 13:13:35 EST 0.0017 3333 OTCPK
03/06/2020 9:30:38 EST 0.0058 500 OTCPK
03/03/2020 10:23:30 EST 0.00585 5000 OTCPK
03/03/2020 10:21:25 EST 0.0017 14000 OTCPK
03/03/2020 10:21:21 EST 0.01 6000 OTCPK
03/03/2020 10:20:08 EST 0.003 80000 OTCPK
03/03/2020 9:42:01 EST 0.01 4000 OTCPK
Do you have OSTKO shares in an account right now? If so, when did you acquire them?
The dividend shares aren't payable until May 19. I am interested in where the shares that are currently being traded came from.
I went onto Dinosaur to see what's going on with OSTKO. There is now a little bit of volume, about 25 shares per day. Does anyone know how these shares originally got issued? Also, I see that Schwab now shows OSTKO as listed on the pink sheets, and I was able to place an order. So it seems like there will be no need for Dinosaur then, and if so, I wonder what is being achieved by all this.
What makes you think it will "blastoff"?
I feel quite pathetic not having had the nerve to buy even a little when it was down in the $3-5 range.
One other thought about the ex-dividend date arriving is that now there is nothing strange for short sellers to be concerned about. For future comparison I will note that the latest short interest info I have is 14.3% as of 3/31/2020.
I spoke to a Schwab representative just now about the digital dividend. Basically, shareholders will get a letter from Computershare telling them what to do. The more interesting thing was that I asked exactly how the ex-dividend date works. What I was told was that if you buy OSTK today and after those shares will not entitle you to the dividend. Fair enough, except that at this moment the shares are up 20%, which superficially at least is very puzzling. I had speculated that there were people who liked the company but did not want to deal with the digital shares. Maybe today's action is them piling back in.
I have no idea what is in the gazillion dollar "stimulus" package, but I wonder if it is possible that companies like Arena will get a piece of the action.
Well, I don't see why the price of OSTKO should diverge much from the price of the regular stock, since they represent pretty much the same thing. You could make a comparison with the B Series preferred shared, which you can buy through your broker. The B shares pay the same 1% dividend as the digital shares, so in theory they have all the value that the regular shares have, plus a bonus dividend. The B shares are very thinly traded, and I have in the past bought them at a significant discount to the price of the regular shares. When you add the fact that people will have to set up Dinosaur accounts to trade their shares (as far as I know), I think that there still won't be much activity. Who knows, maybe you'll be able to get a good deal on OSTKO buying from people who just want to wash their hands of it.
As of this writing, up over another dollar today. I wonder if this is just a repeat of the short squeeze that shot the share price up last summer. I also wonder if Patrick Byrne ever bought back in.
This link explains pretty well how the dividend will work:
https://www.overstock.com/dividend
The main thing that was news to me is that you will receive your dividend shares in the account in which you hold your OSTK shares. If you want to sell them then you will have to have an account with Dinosaur and transfer the shares there. This all seems like a big hassle for little benefit and I wonder if a lot of people might sell their OSTK shares in advance of the distribution with the plan of buying back in afterwards.
The share price certainly seems to be doing very well. The other idea discussed about the dividend is how short sellers will be affected. Maybe that's where the spike is coming from. The ex-dividend date is set for April 24. According to Schwab the short interest is 16.6%. (As to the price, it is moving quickly as I write. Yesterday's close was 6.82, it hit 8.47 earlier today, and is now at 7.30.)
I don't see this going well. The Dinosaur web site is still a POS, and there is still nothing to buy there other than OSTKO and the tZERO cryptocurrency. Maybe there will be other alternatives?
Secondly, here is a quote from the article:
"Byrne thought the blockchain dividend could drive growth for tZERO’s blockchain trading system and simultaneously “expose the slop” he said was inherent to Wall Street’s capital markets."
How in the world does he think the slop will be exposed? The only slop that average retail investors can perceive are commissions and bid/ask spreads. On my regular brokerage commissions are now $0, and spreads are generally minuscule. Neither of these statements can be said for Dinosaur.
Hmm ... what about this sentence:
"Musk has previously deflected cobalt criticism, highlighting that Tesla has reduced cobalt use to a small fraction of its battery chemistry and that it plans to engineer it out altogether."
I'm seeing a lot about applying blockchain to the world of vaccines lately. An example:
https://denominatorgroup.org/blockchain/
Are you saying that IBM must be working with Overstock? If not, then it would seem that IBM is a competitor. As a general comment, I don't see how anyone could get "a lock" on any blockchain application.
This company really is a disaster:
MGX Minerals Announces Date of Meeting of Shareholders and Appointment of Patrick Power as Director and CEO
Mon March 23, 2020 4:05 PM|Accesswire|About: MGXMF
VANCOUVER, BC / ACCESSWIRE / March 23, 2020 / MGX Minerals Inc. (MGXMF) ("MGX" or the "Company") (CSE:XMG)(FKT:1MG)(OTC:MGXMF) announces that the board of directors of the Company (the "Board") has called a meeting of the Company's shareholders (the "Meeting") in response to the requisition (the "Requisition") that the Company received on March 6, 2020, from certain shareholders (the "Dissidents").
The Meeting is scheduled to take place on June 30, 2020, at a time and location to be determined. The record date for determining shareholders entitled to notice of the Meeting, and to vote at the Meeting, has been set as May 20, 2020. The Company will provide further information about the meeting in a management information circular that will be mailed to shareholders and posted on SEDAR in due course. The Board believes that the Dissidents' actions are without merit and will only continue to force the Company to incur unnecessary expenses and distraction.
Appointment of CEO, Director and Chairman
MGX also announces the engagement of Patrick Power as CEO and Director and the appointment of Jared Lazerson as Chairman. Mr. Power has extensive venture capital, mining and technology experience. As Founder and VP of Finance of Western Potash Corp. (WPSHF), Mr. Power was responsible for raising approximately $200 Million and arranging the sale of the company. In addition to experience in industrial minerals such as potash and lithium, Mr. Power has experience in solution mining and extraction of minerals from fluids. As well, Mr. Power has industry knowledge and experience in renewable energy storage, in particular vanadium redox flow batteries.
The Board approved Mr. Power's and Mr. Lazerson's appointments on March 22, 2020, effective immediately. Mr. Power has filled a vacancy on the Board.
The current Board is Patrick Power, Jared Lazerson, Andris Kikuaka, and Lyndon Patrick.
Pennsylvania Petrolithium
MGX announces that, contrary to instruction and understanding, the commissioning and operation of its first commercial rapid lithium recovery system at an environmental wastewater facility in Pennsylvania has ceased. MGX's subsidiary, PurLucid Treatment Systems ("PTS"), left the facility and has had no meaningful communication with MGX's CEO or VP of Operations for an extended period, providing no comprehensible details of their actions. Further, the PTS' CEO has claimed to have unilaterally cancelled the lithium extraction technology agreement with MGX. As such, MGX has advised PTS' CEO that he is in gross breach of his duty and requested plans for repayment of the approximately $10 Million invested to date, and reasonable explanation of PTS' actions. MGX owns approximately 64% of PTS, and finds no basis for the CEO's action. MGX has begun a search for a new CEO for PTS, and continues to request clarification on repayment of its investment, the status of the Pennsylvania project, and a variety of other lithium, potash, and water purification projects. Additionally, the petrolithium site operator has requested repayment of $114,000 in claimed installation costs prior to any further discussions as a result of the abandonment.
Dawson Arbitration
An arbitration award in favor of Dawson Geophysics Inc. (the "Claimant" or "Dawson") in regard to planned geophysical survey and pre-survey work on its formerly optioned Utah Petrolithium property has been awarded as follows:
Unpaid invoice amount of $183,728.85 USD
5% surcharge of $9,186.44 USD
Lost profits of $580,511.00 USD
Total sum of $773,426.29 USD
The Claimant was not awarded legal costs of $150,000 USD.
MGX finds the award of lost profits egregious as the Claimant provided no proof of actual losses simply that had the contract been executed. MGX did not pay the deposit to initiate the actual geophysical survey and the outstanding amount was the preparation work for the survey. Lost profits were not part of the original claim. The Claimant added the claim of such lost profits in the amount increasing the amount far in excess of the arbitration limit of $400,000 USD and the original claim of $183,728.85 USD. MGX's defense largely rested on its reliance on the operator of its Utah Petrolithium property to properly manage the project and only became aware of the excessive work planned on the project after the period that became the subject of litigation. The operator aggressively and forcefully insisted on a $4 Million USD, 64 square mile geophysical survey - far in excess of what was required to meet property obligations and the requirement of drilling 2 holes to earn a 75% interest in the property over 3 years. As a result of the decision, MGX plans to appeal and, failing that, will commence litigation against the operator.
Accounts Payable and Issuance of Shares for Debt
The Company advises shareholders that due to a failure to significantly monetize its MGX Renewables and PurLucid investments in 3rd and 4th Quarter 2019, as planned, and unanticipated interference in capital raising activities, MGX has incurred significant overdue accounts payable, legal claims and related litigation. The Company has been issued a notice of payment by the Canadian Revenue Agency of approximately $517,036.21 related to an incomplete flow through exploration expenditures. The failure to acquire a permit to drill, as anticipated but now issued, at its Driftwood Creek Magnesium project prior to December 31, 2018 was the primary reason for this liability. The Company expects to meet this obligation shortly, with recently announced transactions expected to net the Company $2.1 million (see press release dated March 11, 2020). Further, to reduce payables the Company has reached the following shares for debt arrangements:
1,808,000 common shares of the Company (the "Common Shares") be issued to OCI Holdings Inc., at a price of $0.075 per share.
924,000 Common Shares be issued to Generation IACP Inc., at a price of $0.075 per share.
Upon issuance, the Common Shares will be subject to a hold period of four months and one day.
Advisors
Norton Rose Fulbright Canada LLP is acting as legal advisor to the Company in connection with the Requisition and Meeting. Kingsdale Advisors is acting as strategic shareholder, communications and proxy advisor to the Company in connection with the Requisition and Meeting.
About MGX Minerals
MGX Minerals is a diversified Canadian resource and technology company with interests in advanced materials, battery technologies, gold and industrial minerals.
Contact Information
Patrick Power
CEO
Telephone: 1.604.681.7735
Web: www.mgxminerals.com
Assuming the $57 is in Australian, I calculate about 0.0425 per share US.
What is the most recent info on how much cash per share they have?