Jaclyn Proceeding with Reverse-Forward Split

Jaclyn announced that it is proceeding with the reverse-forward stock split in order to delist from the AMEX:

Jaclyn, Inc., a Delaware corporation (the "Company"), held a special meeting of stockholders on May 7, 2008. At the special meeting, a majority of outstanding shares of the Company's common stock, $1.00 par value per share, adopted and approved amendments to the Company's certificate of incorporation to effect a reverse stock split of the Company's issued and outstanding shares of common stock at a ratio of 1-for-250, followed immediately by a 250-for-1 forward stock split of the shares of common stock.


Nothing has happened to my shares but I hope it goes through successfully. I'm in Canada and I hope there isn't some complication with foreign holders. I also bought under two different accounts at two different brokerages (my regular investment account and my RRSP (similar to 401k/IRA in USA)) and I hope my shares get tendered (if it does fail, it would clearly be a case of too much greed on my part :) ).

Jaclyn is a good example illustrating how small companies don't release information in a timely manner and can disadvantage passive public investors. Their shareholder meeting occurred on May 7th but the filed this release with the SEC on May 12th. If this were a large company, information would have been filed more quickly. None of this mattered much in this case but it does show how information flow is limited with smaller companies.

Comments

  1. craigatkMay 16, 2008 at 4:22 AM

    how many shares total at both accounts did you purchase?

    ReplyDelete
  2. Sivaram VMay 16, 2008 at 10:04 AM

    249 each... we'll see what happens...

    ReplyDelete
  3. craigatkMay 20, 2008 at 1:18 AM

    Good luck -- I was not involved but seriously wanted to. Any update as they have actually delisted by now?

    ReplyDelete
  4. Sivaram VMay 20, 2008 at 10:29 AM

    Jeff from Circle of Competence blog implies that the deal is going through...

    It's deals like these that small investors can capitalize on. Thanks to Jeff for the original mention.

    ReplyDelete

Post a Comment

Popular Posts

Thoughts on the stock market - March 2020

Image
Right now, DJIA has a P/E of 16.8 and forwand P/E of 15.1, whereas S&P 500 is at 20.1 with forward P/E of 15.8. Source: WSJ market Data If you ignore interest rates and inflation expectations--both of these influence valuations but depends on your macro call-- the market is not cheap. Long-term P/E is around 15. Trailing P/E is around 20% (Dow) to 40% (S&P500) higher than average. Forward P/E is in line with long term average but that assumes a strong V recovery. Consensus forecast is for profits to drop 1.2% in 2020. In 2008, it dropped 25.4% so current forecast is a very mild recession. Covid-19 coronavirus is not going to last more than a few months but these forecasts are still too rosy in my opinion. So I wouldn't rely on forward P/E. The richly valued (mostly tech or high quality) have not fallen much but the distressed ones have. So if you want to outperform in the long run, I think one’s choice right now is to: • Wait for market to fall another, say...
✖ READ MORE >>>

Warren Buffett's Evolution and his Three Investment Styles

Image
A Young Warren Buffett In a comment to one of my posts , Mark Carter, who incidentally appears to have a  good blog worth checking out , asked: "Buffett Prime is 1970's to early 1990's" Could you elaborate? I have vaguely indicated how I view Warren Buffett in the past, but I thought I would detail my view of his investing behaviour. This is more of an opinion piece and many others would disagree with me (if you do, I'm curious to hear your thoughts). I don't follow Warren Buffett as closely as many value investors so I may get some facts wrong. My view is that Warren Buffett went through three different phases, with each consisting of different investment techniques. The overall investment theory remained the same—what people call value investing—but his execution, tactics, and strategy differs across the three phases. Some people may break up his career into additional periods but my feeling is that the three I will describe essentially capt...
✖ READ MORE >>>

Hugh Hendry discussion at the Alternative Investment Conference

Thanks to Value Investing World for bringing this Hugh Hendry interview to my attention. I may not agree with all the things—short-term orientation of hedge funds is actually worse IMO; the sharp pencil effect doesn't always work—but Hendry is a true contrarian and worth listening. Like Marc Faber or Jim Rogers, you also can't take everything Hugh Hendry says seriously. I had always felt Hugh Hendry was firmly in the deflation camp but I get the feeling that he is now opening up to high-inflation possibilities. Otherwise, his stance appears to be similar to past opinions.
✖ READ MORE >>>