Hi everyone, I bought around 30 shares of GGB when it was $31 and I looked at my account today and it says that I now have 60 shares and it's up 200% in value. Did I miss some news? I know there's a stock split coming up (I thought it was 3:1, however), but the share price on e-trade doesn't show this yet. Is this just a screw-up that will (unfortunately!) be corrected tomorrow?
Stock Dividend Metalúrgica Gerdau S.A. and Gerdau S.A.
The Boards of the Metalúrgica Gerdau S.A. and Gerdau S.A. approved a capital stock increase in companies stocks by means of the incorporation of reserves, and the credit of 1 new share, of the same type / class of those currently owned, for each 1 share (one-for-one ratio) owned on June 12th 2008.
100% STOCK DIVIDEND
We would like to inform our Shareholders that a capital stock increase in companies stocks by means of the incorporation of reserves, and the issuance of new shares along with the credit of 1 (one) new share, of the same type / class of those currently owned, for each 1 (one) share (one-for-one ratio) owned on June 12th 2008, date of record of the stock dividend and capitalization of reserves, was approved in the Shareholders meetings of the companies listed below, held on May 30th 2008, as follows:
METALÚRGICA GERDAU S.A. Current Capital Stock >> R$ 5,249,181,304.55 New Capital Stock >> R$ 6,900,000,000.00 Value assigned * >> R$ 8.00 Shares Stock Dividend >> 206,340,769
GERDAU S.A. Current Capital Stock >> R$ 10,710,705,744.48 New Capital Stock >> R$ 14,200,000,000.00 Value assigned * >> R$ 4.88 Shares Stock Dividend >> 715,690,113
* Value per share assigned to new shares, as defined by the Brazilian Internal Revenue Secretariat’s regulation IN/SRF 25/2001, Art. 25, paragraph 1, which can be added to the cost of stocks already held by shareholders, for income tax purposes.
Please note that shares acquired on June 13th, and thereafter, will be traded EX-STOCK DIVIDEND and the credit of the news shares will be on June 18 th.
Additional information can be obtained at the Shareholders Department, located at Av. Farrapos 1811, 90220-005 Porto Alegre / RS – Brazil Phone: +55 (51) 3323.2211 – Fax: +55 (51) 3323.2281 E-mail: email@example.com
Porto Alegre, May 30th 2008
Osvaldo Burgos Schirmer Vice President Investor Relations Director
Hey, my account on SogoTrade has also been updated. My quantity of shares have doubled, and my cost basis has changed to reflect my position. But the stock price is currently at $51 showing an erroneous gain and %. Of course tomorrow the stock will open at the split amount because if it goes even 30 seconds at 50....you can believe me when I say...I will attempt to sell for my little fortune!