Friday, April 23, 2010

Boss Holdings Update... number 2.

Here is the 8K from BSHI, where stock holders approved the reverse and forward stock splits at the annual meeting.

Today, numerous shares traded hands at a price that is significantly less than the $7.65/shr buyout that was offered by the board for accounts owning less than 100 shares of stock. There had been significant volume in the days before the meeting, yet, the price was not where it should of been- super close to $7.65/shr.

I am somewhat surprised by this, but I openly suppose that the people smart enough to do this sort of thing, either don't know about it, don't have the cash laying around in their broker accounts, or are not enticed by making a few hundred bucks. As I have said before, you can do this over multiple brokerage accounts, and further your arbitrage; I did so with 5 accounts. At my cost basis, I will make ~$700 bucks, over the course of a few months, having tied up little capital, and in doing so, took on a minimal amount of risk on my invested capital.

It may make me cheap, but the way I see it, I just paid for my hotel, plane ticket, meals, AND boozing money for the VIC in Pasadena. :D

EDIT: Looking back on it, I probably should of opened a plethora of broker accounts to take advantage of this; literally, I should have spend a day doing nothing but devoting my time to play this arbitrage.

Disclosure: I own shares of BSHI. This is not investment advice. Always do your own research before doing anything I write about.

5 comments:

Anonymous said...

Holders of less than 100 shares as of when?

jeff said...

you are right, as the less than 100 shares was before the meeting. thanks for pointing that out. What I meant to say in the post, was that there was a significant amount of volume in the day(s) before the meeting... my bad; I edited it, and should of been more clear. :)

Anonymous said...

When are the SNS notes coming? Looking forward to it now that I'm a new owner. Of course, I wish I would have found the stock at $300 but I guess if I hold for 20 years that won't matter.

James

Anonymous said...

If I bought 99 shares today would I still be eligible for the distribution?

Thanks.

jeff said...

You are gonna have to read the proper SEC stuff to determine if you could get a distribution.