InvestorsHub Logo

Aef

Followers 1
Posts 306
Boards Moderated 0
Alias Born 08/01/2013

Aef

Re: TheCleos post# 6235

Wednesday, 11/01/2017 11:07:12 PM

Wednesday, November 01, 2017 11:07:12 PM

Post# of 6624
Cleos, I think you are missing a couple things.

First, according to what has been posted on this board no one has succeeded to put in an order to exercise their rights for new shares except via Fidelity. So if your shares are in fidelity you could do the first part of your plan, if not you can't. Even if fidelity I would check that it is still possible before banking on it, diff brokers seem to be giving diff deadlines from official.

Second, the same applies re brokerages for purchasing additional rights. And even if you are at fidelity, it is not guaranteed you will succeed in purchasing them.

Lastly, even if you could purchase additional rights, I don't think there is a point for you. It costs about $2 a right and you need 5 to be able to get a new share. Which means you would pay $10 to be able to buy a new share at $29.50, which ends up being the same price your share are now(ish). And you will have paid brokerage fees.

So if you don't have money (or ability) to exercise rights I would say sell the rights ASAP if your brokerage allows and you are still able. You'll bank the $2 per share and can use that to buy more on the open market if it drops more. Or you could sell some now and try to buy back lower, of course it's super low volume and who really knows how the stock will act.

From my convos with fidelity and etrade I would emphasize- don't trust the official dates for selling rights, act asap so you don't lose that money if you haven't already.

Hope that is helpful, and of course, I am not a financial advisor...


Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.