This is over my head. Should I change my shares over? I have 1000 shares of each line and lnco both at big losses. Owned for a few years so have lowered my cost base, would that be lost in the change? Would it now be a short loss over a long loss? If I switch how will or can it hurt down the road? Help if anyone really understands this.
I realize there is no legal recourse and the dividend is not guaranteed but, #%^##, I just bought some more of this after rereading the CC a few times and being conned into believing the dividend was safe. Here's answer from the last CC from Peter Evensen CEO in response to a question about alternatives to funding growth.
"How we are thinking is that we will prioritize projects that give us our hurdle rates, and that work with our new cost of capital. And that's our strategy, rather than try to look at it differently. *We continue to believe that with the dividend and with the stability that we have we will continue to see the unit price come back as investors realize that we do have a stable distribution*.
That last line sums up the general sales pitch of the CC. Lowering the dividend one month later by 80% is NOT stability. Didn't Madof say one thing and do another?
Is this our AOBI?
Chinese Pharma Co. Ducks Investor Suit Over Botched Sale
Share us on: By Jessica Corso
Law360, New York (September 24, 2014, 5:10 PM ET) -- A California federal judge on Tuesday tossed a putative class action brought by shareholders of China-based American Oriental Bioengineering Inc., saying that the board of directors' failure to disclose an unsuccessful subsidiary sale did not amount to securities fraud.
U.S. District Judge Fernando M. Olguin ruled that the lead plaintiffs failed to prove that AOB acted recklessly in releasing several quarterly earnings reports that glossed over the fact that it sold Nuo Hua Investment Co. Ltd. at a loss of nearly $1 million or that it...
I am with Merill Lynch. They just showed the 501 split a few days ago but are showing nothing on my left over 500 shares.
Hi, My account is with Merrill Lynch. My order was in for a few days and sat on my offering price till it got assigned on Dec 24rd, 304 shares at .15 so it would = 4 shares for me and again I placed an order that sat for a pit for 500 shares at .10 on May 6th. My understanding I would get .50 per share if I understood the report correctly. So it was trading
The PE is what is keeping me away. The buy-back should help but with all the suing I am just playing a few small safe options. Was a long hold that got burned when they had claimed the div was safe.
Why are traders selling? The price is .10 now. In statement they are going to pay .50 per share of under 500 shares. Are traders that non trusting in company? (ok so don't answer last question.)
Merrill Lynch March 27, 2014
AMERICAN ORIENTAL BIO ENGINEERING INC
REVERSE STOCK SPLIT
Review - Mandatory Corporate Action
No action required Your account will be automatically adjusted
Meeting Date: Mar 14, 2014
Effective Date: TBD
Security Rate: 0.001996008
Share Ratio: 1.00 New per 501.00 Old
Fractional Share Code: OT
Holders of 500 shares or less will be cashed out at USD 0.50 and effective date is yet to be determined
Thanks much, your further explanation made me look deeper at my account and it has become clear what happened. I did expect the adjustment and it happened as you say, except that, for no reason I can come up with, I had received 32 shares of SPH but only 30 of which had been called back when my option was exercised. The 2 shares that remained in my account I sold shortly after and forgot about them. At expiration the cash in lieu I received of SPH AND the value of those two SPH shares were taken. When I saw three times the cash in lieu amount I received was taken I thought there was a problem, having forgot about the extra 2 shares so you and my brokerage (ML) are correct.
Thanks again for your help.
FYI, we've had an ML account for many years and in general, trading goes well, however, to call support is a nightmare! Maybe we're on a "place on hold" list because, even for the simplest question, we get put on hold for about 45 mins. and, if it needs a higher level, as long or longer for each pass along. Just thought I'd explain why I went the forum route before calling ML.
Thanks for your reply. I am, however, still confused so perhaps you could explain in more detail. I've done quite a few options, many calls, but not involving a merger. Some of my covered calls have been called ahead of expiration and I would receive the strike price times the number of contracts times 100 and finished. When this was exercised early, I received the adjusted strike price of NRGY from $20 adjusted to $16 and the difference in SPH shares which also got taken. This happened a month before expiration. My shares were taken and I received an amount equal to the 20 strike price. It seemed, like any exercised early option, a done deal. This past Friday being the expiration date should be irrelevant.
I hope I'm clear as to what occurred and, if not, I'll call my broker and hopefully not have to go through too many levels.
Thanks again whether you give it another go or not.
Back on April 27th, before the big SPH announcement, I sold an October 20 covered call for $1.10. I got the SPH shares on September 17. When my NRGY option got called on September 26th they took my NRGY shares at 16 and took back the SPH shares and I thought it was all finished. This option did not expire, it was called on September 26.
Today, October 23rd in my account I see they took out $33.61 per contract. I had done 3 contracts so they just took out $100.83 today. I don't understand why this was taken??? Can anyone answer this? My guess it has something to do with the October expiration date. Anyone with any insight? I dread calling my brokerage and just being put on hold all day. Thanks in advance.
All three of you in this thread seem to be pretty well informed on this industry and CPLP. I'd appreciate your thoughts on these few questions I have. If CPLP puts out a secondary, what will they do with the money? Would that help the div. (although to put out a secondary just to pay a div. seems like a ponzi to me so I assume it would be to pay down the debt). Why does the company guide to a higher div for 2011 knowing that in a year there will be none? Also, at the end of 2010 the assets grew yoy as the debt stayed the same. Does this mean anything good or bad? Thanks in advance, Bud
I had the exact situation. My account said it traded on the ex. date seeming like I should receive the div. but I did not get the it. It makes sense. The only reason it would get exercised early is to get the Div. so I am pretty sure you will not.