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Great Northern Iron Ore Propert Message Board

  • abby_thecat abby_thecat Feb 19, 2013 11:28 PM Flag

    Trust Dissolves In 2015 -- GNI Shareholders Get Nothing

    Do your homework, read the GNI's website. In April 2015, the trust assets revert to Conoco and GNI shareholders get nothing.

    Sentiment: Sell

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    • I have question for you: Why stock option still trade on the same day that expired. Basically you got nothing after the expire day, but people still actively trade. I consider a similarity here fro GNI stock.

      • 2 Replies to spikerone
      • Oh, I get what you are saying.
        Well, if the options are out of the money (ie. no value left) they will trade for pennies due to people executing various kinds of options strategies (like roll forward) which involves buy to close as one leg. So, yes, GNI will be trading just before termination but like the out of the money options it will be for a very small amount determined by the current estimate of the petty cash which will be distributed to unit holders (last estimate was around $8, but it may be reduced if they distribute some of the spare cash in the quarters before termination).

        You know, GNI is not the first trust to terminate. There have been plenty which we have seen go through termination before.

      • GNI has no options. What are you talking about?

    • Do you really think that people who bought this stock did not have that information? Don't be a savor to GNI shareholders. There are some reasons that make people want to own GNI share with this knowledge and GNI still trades higher. I don't think that these reasons will disappear next week.

    • Actually, shareholders will get a final distribution payment of maybe $8 or $9/share. The stock is still way overvalued.

      from the website:

      The exact final distribution, though not determinable at this time, will generally consist of the sum of the Trust’s net monies (essentially, total assets less liabilities and properties) and the balance in the Principal Charges account, less any and all expenses and obligations of the Trust upon termination. To offer a hypothetical example, without factoring in any expenses and obligations of the Trust upon its termination, and using the financial statement values as of December 31, 2011, the net monies were approximately $7,927,000 and the Principal Charges account balance was approximately $4,962,000, resulting in a final distribution payable of approximately $12,889,000, or about $8.59 per share. After payment of this final distribution, the certificates of beneficial interest (shares) would be cancelled and have no further value. It is important to note, however, that the actual net monies on hand and the Principal Charges account balance will most likely fluctuate during the ensuing years and will not be “final” until after the termination and wind-down of the Trust. The Trust offers this example to further inform investors about the conceptual nature of the final distribution and does not imply or guarantee a specific known final distribution amount.

      Sentiment: Strong Sell

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