Nuevo Grupo Iusacell (CEL) Message Board

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Technology Stocks : Nuevo Grupo Iusacell (CEL)

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To: Rob Preuss who wrote (133)	10/26/2001 9:14:50 AM
From: Dennis Roth	Read Replies (2) of 206

I think it depends on if you feel comfortable about adding more CEL to your portofio at $2.35. I was planning on adding more at current beaten down prices anyway so I decided to fully exercise my rights. >> I'd like to hear what folks have to say about the rights offering which expires Tuesday AM (so the last chance to exercise is Monday 29 October 2001). << According to the prospectus, it expires 5:00 pm New York City time on November 1st. My broker gives me to 7:00 pm on October 30th to give him instructions. The deadline for decision varies by brokerage firm. >> Also, has anyone seen the rights offering? Are there any hidden restrictions or is it just a straight offer to sell ADR's at $2.30 each? << Yes, weren't you mailed a propectus? Its $2.30 plus a $0.05 issuence fee which makes the cost $ 2.35 per ADS. >> Unless the rights include some restriction on selling << The rights themselves are non-transferable. I know of no restriction on selling the stock. My broker requires I have enough money in my account to cover the cost by November 1st and the shares won't be delivered until November 7th so I suppose I would have to wait until the 7th to sell shares aquired via the exercise. The rights offer is a use it or lose it proposition. I wish the rights had been transferable and seperately traded. It feels somewhat coercive. Either give the company more money now and increase your holding or lose the opportunity to get the shares at $2.35. Unlike warrents or options, you can't sell the right to someone else to exercise. Maybe an invester doesn't want to buy more CEL ADS now, it's use it or lose it. You can't get any value out of the right except by exercise. $2.35 may prove to be too much if the stock is goes to zero.

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