I entered my position in China Energy Corp. at the end of March with the expectation of making a low risk 8% return in a couple of months. The completion of the going private transaction is going slower than expected, but the transaction seems to be on track. The company filed a form 15-12G last week terminating the registration of the shares with the SEC while the reverse stock split was executed more than a month ago. So the going private transaction at $0.14/share is at this point in time really a done deal, but the shares are still trading unchanged around $0.13/share.
The fact that the shares are still trading after the reverse stock split was effectuated more than a month ago is normal I think for these kind of transactions. I owned a few shares of AssuranceAmerica in the beginning of this year. In this case the reverse split was effectuated on March 11, the form 15-12G was filed on March 26, the shares stopped trading almost a month later on April 16 and the money hit my account on May 10. If China Energy Corp. would follow a similar timeline you are looking at a ~6.5% return in ~six weeks time. That’s pretty attractive if you ask me, so I decided to buy a few more shares today.
Long China Energy Corp.
What broker are you using for this trade? Seems like most brokers charge 0.0035 – 0.005 per share, eating up half the profit.
I used Interactive Brokers. Transaction costs still relative high, but less than 0.001/share so that’s doable.
I tried to buy today but it seems that it’s not available for buy
Picked up some shares today at $0.11….not bad
Seems someone really wanted to sell today: lowest price @ 0.013 cent, less than 10% of the price yesterday.
I also tried to buy only to get a message that this contract can only be closed.
Yeah, seems IB has put it on their black list for some reason.