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Stereotaxis Inc. Message Board

  • alikik alikik Nov 2, 2013 6:18 PM Flag

    After reading all the posts on the "rights", I am even more confused now

    So for us novice traders, can someone please answer some basic questions.

    1) My TD Ameritrade account still doesn't show any rights (or shares of STXSR). Assuming it's just a timing thing and I will get them sometime next week?

    2) If so, will the "rights" themselves have any value, and if so can I sell on the open market with my online account?

    3) If the rights themselves don't have any value (and I can't sell through my online account), the way I understand it (to exercise) is to call your broker and you pay $3 cash for a share of STXS for every right?

    4) So if #3 above is indeed accurate, then isn't it a no-brainer that everyone should exercise now since you can make about $1 a share based on Friday's closing price?

    5) I originally bought 2,000 shares of STXS but sold 600 on Friday. Does that mean I only have 1,400 rights now? (if so, then I guess I was very stupid to sell since I lost $1 per "right" if #4 above is accurate).

    Thanks in advance--been very frustrated the last 2 days trying to figure this out (and the stock has really tanked since I bought it).

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    • all you will find here are novice traders. they keep talking about the share rights and really it is all meaningless. mean while the stock loses 8 % every day and none of them complain. Any offering is NEVER good for the share holders. If you own this stock the just start praying every night or get out. This is a pure sucker play with very little chance of going past 4 again.

    • "1) My TD Ameritrade account still doesn't show any rights (or shares of STXSR). ... I will get them sometime next week?"

      Your account doesn't have them because they haven't been paid out yet. Whether you get them next week or not depends on when the payment date is, and it hasn't been announced yet.

      "2) If so, will the "rights" themselves have any value, and if so can I sell on the open market with my online account?"

      The rights have value as demonstrated by the fact they began trading on November 1st. Yes, you will be able to sell them, but whether or not you have to do it by calling your broker instead of placing the trade online remains to be seen. Most likely you can trade them online, but that's not certain.

      "3) If the rights themselves don't have any value (and I can't sell through my online account), the way I understand it (to exercise) is to call your broker and you pay $3 cash for a share of STXS for every right?"

      As noted above, they do have value and you can sell them, but if you want to exercise them, then yes, you have to call your broker. But it's not $3 cash for a share of STXS for every right, it's $3 per share for every three rights. Each right entitles the holder to buy one third of a share, not one whole share.

      "4) So if #3 above is indeed accurate, then isn't it a no-brainer that everyone should exercise now since you can make about $1 a share based on Friday's closing price?"

      Look at the five day chart. Does that look like the share price will reliably be $4 at the time of the rights payment date or does it look like there might be some risk involved?

      "5) I originally bought 2,000 shares of STXS but sold 600 on Friday. Does that mean I only have 1,400 rights now?"

      You don't have any rights yet. You have to hold until the ex-date to receive any rights, and the ex-date hasn't yet been determined. From the press release: "The ex-rights date for the rights offering is pending and will be announced once it is established by NASDAQ."

    • All scams are ALWAYS confusing !!!!!
      Buyers be aware !!!!!!!!

      Sentiment: Strong Sell

 
STXS
0.780.00(+0.01%)Feb 9 3:59 PMEST