USA: Seaspan drops below the limit Stop-Loss order I gave yesterday.
Here is the reason for the sudden fall
Canada NewsWire
HONG KONG, Jan. 17, 2020
HONG KONG, Jan. 17, 2020 /CNW/ - Seaspan Corporation (NYSE:SSW) announced today, in connection with its previously announced holding company reorganization (the "Proposed Reorganization"), that it intends to delist its outstanding 7.125% senior unsecured notes due 2027 (the "Notes") from the New York Stock Exchange (the "NYSE") and to deregister the Notes under the Exchange Act of 1934, as amended. Delisting and deregistration of the Notes is expected to occur on or about the effective date of the Proposed Reorganization. Seaspan has not, and does not intend to, arrange for listing and/or registration of the Notes on another national securities exchange or for quotation on another quotation medium. Seaspan intends to exercise its option to redeem the Notes on October 10, 2020, the first date for early redemption, at par plus accrued and unpaid interest to, but not including, such redemption date.
Upon completion of the Proposed Reorganization, Seaspan will become a wholly owned subsidiary of a new holding company, Atlas Corp. ("Atlas"), with holders of Seaspan common and preferred shares becoming holders of Atlas common and preferred shares, as applicable. Atlas will apply for the listing of Atlas common and preferred shares on the NYSE, and Seaspan will apply to the SEC to cease to be an SEC-registered, reporting issuer with publicly listed securities.
Hmmmm.... this is a huge reorganization of the company..... probably the reason that previous deal to purchase that Natural gas company back in December fell through.
Here is the current chart
Now our limit stop-loss order was the following
Effective immediately I am placing a Limit Stop-loss order on 2000 shares of Seaspan Corp [NYSE:SSW] with a target of $13.30 and a limit of $13.00.... the duration of the order will be 30 days
As you can see the shares opened at $12.87 and fell very quick
IF we had used a simple Stop-loss order... Our stock would have been sold somewhere between $12.87 and $11.90 as the stop would under a market order to sell the shares wherever possible.... in my experience it would be at the low end of that range.
Since the share price plummeted below our limit of the limit stop-loss order that we set, order order was not activated. It is still a valid order if the stock price rises to $13.00 or higher.
This allows us to decide when we want to sell the stock.
If you look at that first chart I put here, you will see we are miles under the lower Bollie now. I would hope that the price will continue to rise until it reaches the lower bollie.... or close to it. It has pulled back about $0.50 from its low so far hopefully it will rise more.
If you read that announcement, Seaspan will be delisting SENIOR NOTES.... not the common shares and this apparently won't be completed until Oct/2020 and then a new company called ATLAS will be formed where the seaspan company shares will be folded into it using some unknown formula at this time.
so there is time.... I intend to sell these shares... I will watch to see that this pullback continues to rise.... if it rises steadily to $13.00 I will probably cancel the limit stop loss order so that do not sell until I want to pull the plug.
This is a good example why I use Limit Stop-loss orders and not simple stop-loss orders....It gives you some control.
UE |
