SunPower Corporation Message Board
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Why Haven't You Sold Your A shares and Bought B shares?
I assume that many of the readers of this board own SPWRA shares. I just don't understand why. Even if the A and B shares are never combined in a single share class (which they almost certainly will be), both share classes offer exactly the same economic interests and the B shares have greater voting power. They both have very good liquidity. The only difference is that the B shares can be purchased at a 10+% discount. Its like going to a store and asking to pay 110% of the price of an item. Why would you do that?
Can people that own the A shares explain the motivation in holding them to me?
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I might ad that the Aug $25 calls have traded 4,904 contracts as high as .50 Are people nuts , or is the stock going north of $25 ?
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It looks to me that the highest it traded during the time of the tender was $21.73 .It did have some trades @ $22.60 on 4/29 but that was on the initial announcement . It's gone past the $21.73 today . This after the three downgrades (in one day)and all the bad mouthing and getting down to $16.05 and I think a target price of $14.00 out of one hotshot brokerage . I did not tender or sell and I'm happy .Looks like about $22.00 right now .
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DingDingDingDing...Troll alert!
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Did you try going through your broker and short it? There's no share A available in E*Trade. I don't think anyone can short share A currently.
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Why not? There are very limited shares that could be short on A.. Same applies for B as 60% is taken away by Total.
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Have you tried shorting A share? It cannot be borrowed, this includes institution. This is why A shares are up daily.
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Did the company ever mention merging both type of shares into one stock?
- 1 Reply to richl889
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Yes.
First paragraph of Section 5.9 (Reclassification) in the tender offer states that it must be proposed within six months after close of the TO and that SunPower agrees to vote in favor. Total, now a 60% owner will presumably also vote in favor, since it's a requirement in their own offer.
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=7894398-40915-306016&type=sect&dcn=0001193125-11-119970
I think we can assume reclassification will occur as proposed in the TO.
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For 2 1/2 years the question has been asked: why are A shares priced higher than B ?
No logical answer has ever been given. Because there is none!
Initially the spread was 10% or more. Before the tender offer it was reduced to less than 1%.
Now it is more than 10% again.
Why? No logical answer! Again! -
To continue. Most people I dont think are holding much of there shares since 94% got purchased at $23.25. I am thinking of getting some back; however, I am just not ready yet. If it goes down, I might. If it goes up, probably not as why would I buy back in at or near the price I sold at $23.25. However, if I decide to go back in for the long term if the price goes down, I might next time buy "B" shares since I believe they will go "private" in 2 to 3 years and all B and A shares will be bought, and if "B" is at a discount, then I will buy B.
- 1 Reply to ckirbygo
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Boy, that's a lot of hostility. Maybe you should take your profits and spend them on a good therapist.
Even if you consciously thought, "I want to hold the A's because more will be accepted in the tender, that is all history now". Congrats, on your decision then, but what about now? Also, many of the A shareholders did not tender and did not benefit from the higher acceptance level in the tender (remember, that is why you got such a high level accepted).
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Well, first off "voting rights" mean nothing for us shareholders on this board. We dont own enough to even make a tiny difference. And dont tell me its important to have voting rights because it wont matter. Secondly, you tell us "B" shares are selling at a 10% discount. However, what happened when they bought shares back at $23.25. 94% of "A" shares got bought at that price. How many "B" shares (what %) got bought at that price??? I think that more than offsets your 10% at a discount theory. Look, when I got interested in Sunpower, I was lead to SPWR"A" and didnt really know and research I had an option of "B" shares; however, as it turns out, since I got 94% bought at $23.25, I cant complain.
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