Picking up some easy money (ADVC)

Advant-E Corporation (background) is offering small investors a nice opportunity to make a few bucks. The company is going private and cashing out shareholders who own less than 10,000 shares at $0.27/share. The company also announced a $0.02 special dividend per share that will be paid before small shareholders will be cashed out. With the shares currently trading at $0.26 you can make an easy $300 with limited risk by buying 9,999 shares and just waiting for the dividend and to get cashed out.

Disclosure

Long ADVC

8 thoughts on “Picking up some easy money (ADVC)

    1. Alpha Vulture Post author

      You don’t have to really worry about buying before the ex-div date, because the stock price should go down ~$0.02/share on that date as well and you would still make ~$300.

      Reply
  1. TravelerMSY

    Do you know if these deals are per beneficial owner or per account? Wonder if you can double dip in personal vs. IRA custodial accounts?

    Reply
    1. Alpha Vulture Post author

      Officially these kind of deals are per beneficial owner (check the PRE 14C here), but unofficially it’s probably going to work. One thing that I probably should have mentioned: you have no guarantee that the company will buy your shares if you are holding them in street name, from the filing linked above:

      We intend for the Reverse/Forward Split to treat stockholders holding Common Stock in street name through a nominee (such as a bank or broker) in the same manner as stockholders whose shares are registered in their names, and nominees will be instructed to effect the Reverse/Forward Split for their beneficial holders. However, nominees may have different procedures, and stockholders holding shares in street name should contact their nominees.

      Reply
    1. Alpha Vulture Post author

      Lol/wtf… looks like you are right. Must be some kind of record they broke here: issue a PR about the time table of the forward/reverse split only to cancel it 24 hours later…

      Reply
    1. Alpha Vulture Post author

      As visible on the portfolio page: sold as soon as the going private transaction was cancelled. No reason to keep a position if the initial reason for buying it is gone.

      Reply

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