Going Private Transaction: CNFL
UPDATE:
CNFL has received an SEC Notice for having an insufficient number of public shares. They have until Oct. 24 to submit a plan to regain compliance. The company "believes that the proposed Going-private Transaction represents "good cause" for which Nasdaq Staff may extend the October 24, 2007 cure period."
In my opinion, this is a slight complication, but does not violate the original thesis. Even in the case where CNFL shares are delisted, that does not preclude the GPT.
ORIGINAL:
CNFL
SEC Filings
10/04/2007
07/19/2007
The company will execute a 1-for-250 reverse stock split in order to go private. Shareholders who own fractional shares will receive $7.25 per share, effective Nov. 13. If you can pick up shares today for $6.75 (last trade, I picked up my shares weeks ago at better prices), that should give you a 7% return within a one-month turnaround, for a 137% annualized return.
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4 comments:
Thanks for the post.
So how many shares do you own? 249?
Yes, I own 249 shares that should be fully tendered for cash. Shares were recently available for $6.55, for an approximately 11% gain.
Hi,
It's November 14th and the going private transaction has completed. What do I do with my 249 shares? Thanks.
I just called my broker (Ameritrade) and they said the cash should be received within a week or two.
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