Hi Kent,
Sorry about your AFLX investment and hope that you will do better next time.
I likewise was stuck with 4,500 shares in 2 different accounts, Schwab IRA (2500) and regular E-trade account (2000) at average cost of $7.17/sh (I have been averaging down, with the last buying at 2.5/sh).
Like you, I feel the shareholders were shortchanged in the real value of AFLX. However, I was curious about the tender process, so I talked to Schwab after getting their tender letter. This is what I found:
- If I tender my shares, and if the merger is successful (INNOVEX gets more that 50% of the shares), there will be a transaction fee ($39 at Schwab, $20 at E-Trade), and I will get money credited to my account about 3 weeks after the merger date.
- If I do not tender, and if the merger is successful, I still get money credited to my account ($3.8/sh), with no transaction fee (because the transaction is not voluntary), in about 6 weeks after the merger date.
Thinking that my 4500 shares won't make any difference in the final outcome, and will be taken away if the tender is successful anyway, I am planning to sit out, just in case something else comes along.
Like you, I will try to be disciplined and stay away from small cap stocks in the future. I also plan to transfer all my account out of Schwab to E-Trade, because I don't see additional benefit for the higher fee involved. Good Luck to you and all investors on this Board! |
