Builders FirstSource, Inc. (BLDR)

[Tina]

Hi digi

I'm sorry to hear that you didn't realize that. ugh I just realized you were a free member and don't have search capabilities (what I normally do when researching stocks on ihub).

I believe Zephyr posted information about it when it came out.

I sold it not too much longer after realizing it was in my account and after reading Zephyr's and Rawnoc's explanations.

Here's Raw's explanation of reading the material:

Posted by: Rawnoc Date: Thursday, December 24, 2009 6:11:52 PM
In reply to: IXl0IXl0lXI who wrote msg# 216811 Post # of 217240

It depends on what the underlying stock does -- BLDR

The intrinsic value of BLDRR is whatever BLDR is trading at minus $3.50 (the rights offering price), in this case $4.20 - $3.50 or .70.... if BLDR falls to $3.50 or less the intrinsic value of BLDRR becomes 0. For them to quadruple like you fear or go to $2.80, then BLDR needs to go to $6.30 ($3.50 + $2.80 = 6.30) or up 50%.

The rights offering expires January 14 so I'd say you did wise taking the easy money and running because you could lose all of your value in BLDRR if BLDR falls a mere 17% which could happen from other people exercising their rights then selling the stock. But if you're a super strong believer in BLDR to fly by January 14 and are willing to take a large risk, then holding or buying BLDRR can be wise and very profitable.