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Hooker Furniture Corp. Message Board

cpa38 4 posts  |  Last Activity: Nov 10, 2015 10:05 PM Member since: Mar 17, 2000
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  • Reply to

    Idiots run and administer this fund

    by cpa38 Nov 3, 2015 10:51 AM
    cpa38 cpa38 Nov 10, 2015 10:05 PM Flag

    The formula was ... higher of

    1. 80% of NAV on expiration date of 10/30 .... .80 * 14.52 = $11.62

    2. 95% * Volume weighted average of closing price on expiration date + 4 proceeding days. That weighted average was $11.75. So, price under this formula was 95% of $11.75 = $11.16

    Offering placed at higher of $11.62 or $11.16 .... $11.62

    As I indicated, a #$%$ person wrote the press release.

    I was an idiot. I participated in the offering. Only for a very small number of shares though. It kept me motivated to track the results. Based on how they priced it, I knew it was a busted deal right out of the gate. But, I have traded these often and track every one I can to understand the trading patterns. The last couple have killed my P&L though. So, I'm not an expert. Still, I'm intrigued with them given the number of different angles one can trade them depending on how they are structured. This one was structured by a mentally challenged idiot. I suspect that's why they're having so much trouble getting shares allocated. Behind the scenes of this deal, chaos probably reins. This is the most poorly managed closed-end rights offering I have ever witnessed. And, I've tracked and traded more than I have fingers and toes to count with.

    The fund manger CFO needs to be fired, along with everyone else who touched this botched offering.

  • "Shares will be issued promptly after completion and receipt of all shareholder payments, expected to occur on or about November 6, 2015."

    Here we are on Tuesday evening, November 11 ... and stock has STILL not been allocated, leaving us flapping in the wind.


  • What's up with the terrible performance of this fund? NAV down almost 10% for the year, while overall mkt at breakeven. They've been sitting on a pile of cash throughout this last month while the market has surged 9% or so. No excuses for such poor performance.

  • They botched the formula for pricing the offering. As a result, they only raised a fraction of what should have been raised if it was priced correctly. Why is this important? It's important because they opened a window and threw the offering administrative costs away. This was our money they spent on this inefficient, ineffective offering.

    Not only have they proven themselves complete clowns in executing on an offering, they royally botched the press release about the results. This press release is among the very most confusing I have ever read in regards to the results of a CEF offering. The actual offering price was $11.62. But, to read the release, you would think it was $11.75.

    Honest to gosh, there are complete and utter idiots running this fund. Run, don't walk, to the nearest exit.

27.70+0.21(+0.76%)Nov 27 12:59 PMEST