About one year ago all PRIS-B holders received a distribution of PRIS. Today I received a 700 share distribution of PRIS. Anyone know what is going on? It is very hard to get information on either of these equities.
PRIS announced a restructuring--I think it was in July '12--whereby they, their debt-holders and the preferred holders agreed that the cash cumulative preferred dividend, which supported the higher stock price, was to be replaced by a dividend in the common stock of PRIS. This "recapitalization" helped save the company from bankruptcy at the time, and is the reason the preferred continues to sell at a premium. Please see the releases from that time-frame for more details.
Very similar story with me. Just received 875 shares @ $2.148. Better than nothing...but I'm still massively underwater with this loser. There have been some stories about them spinning off assets to pay off debt using a Payment In Kind approach, but I haven't heard if this is happening. This thing seems like a black box.
My total (misguided) investments of $20,000 (in a traditional IRA no less) are now worth just a little over $10,000. I averaged down for a while, and then just gave up. Still, I'm glad I have held, with the recent uptick and surprise distributions I've just about doubled off the low. I see about a 33% chance that in another two years I could be even.
My original investment was motivated by an article in Forbes. Clearly not enough due diligence.