ACME Communications started trading ex-dividend today. The company was trading at $1.03 before the weekend, and after paying a $0.93 dividend trading started today at $0.25. I wasn’t able to exit my position at this price, but I was fast/lucky enough to sell at $0.16. Initially I intended to hold my position until the liquidation was complete, but if the market is unable to subtract it’s time to change the plan…

I’m going to keep an eye on ACME Communications because I do think it could become an attractive opportunity again in the future. With the liquidation almost complete I can imagine that some shareholders think it’s time to exit the position without caring too much about the price they get for the remaining piece. At this point it’s probably a minuscule position for most shareholders (the market cap of the complete company is currently just $1.44M). Evaluating how much the remaining company is worth today is quite hard, if not impossible. While I don’t like investing in something I can’t really value I imagine that this could also create a situation that offers a favorable risk/reward ratio if other shareholders are equally clueless, and happy to sell. Maybe I should just buy my position back?

Disclosure

No position in ACME anymore