The message was clear and simple:
"Proteonomix, Ltd....will issue to all shareholders of record at the close of business on January '18', 2013, the same number of shares that they own at the close on that date, without further payment of any sort whatsoever."
There were no other announcements that suggest otherwise. The series of press releases provide a solid legal ground for you to claim the shares of the new company with no further action required as long as you owned the stock by the close of last Friday.
I got out better than .76 and managed to take profit. You may ask why I sold?
First, this move was similar to any other dividend play. What makes it different is you are receiving a stock with unknown value instead of a certain amount of money per share. This makes it difficult to find a bottom or post-dividend support. Plus the momentum rally was expected to end on Friday. So who was going to support price? Nobody big enough (individually or collectively). If I don't know my risk, I won't be in a stock.
Second, as of today, the future of this company is difficult to predict. In fact, we know nothing aside from the trial going on and a bunch of speculative optimism. I would rather wait for a news (about Stromacell and its future) and pay higher p/p to buy again. That way I know what the risks are. In this case I don't, so I got out.
Third, shorts are still around and from what it looks like they won't be going away anytime soon. (over 100K shorted between last Tue and Fri; 81K today) This means that you will have some competition while liquidating. You might be forced to put a lower offer depending on how desperate and patient you are. Why bother?
Fourth, my trading philosophy (I would rather miss an opportunity to make MORE money than lose principal and unrealized profit) Notice MORE being the keyword. I'm aggressive but not greedy. Especially in this case where I had a 110% strong feeling that the stock will lose a lot of value very very quickly.
Fifth, I went with my feeling. It's always good to have certainty and confirmation for it makes decisions easy. I am sure that a lot of you wanted and would have loved to sell at a higher price but were not sure if you were getting the spinoff. I thought the same thing.
In general, I hit two birds with one stone. I made profit, and I'm getting the spinoff. Worst case scenario, I would have to call my lawyer.
