2 t'best o'my knowledge, CSN is NOTTTTTT in trouble. Far from it!!!
I believe the following quote, lifted from the official CSN website gives a clue as to what is occuring currently, in processes and gleen a clue as to the "whys" behind the recent share price action:
Q: What is the process of this "spin-off" transaction going forward?
A: The process of this transaction is as follows: The spin-off happens in three phases.
Phase One is the creation of Convergys Corporation.
Phase Two, which will probably take place early this summer, we will register and sell to the public less than 20 percent of the shares in Convergys.
Phase Three, which will take place later this year or early next year, we will distribute the remaining shares of the new company on a tax-free basis to Cincinnati Bell Inc. shareholders.
I suspect the "jockeying" in anticipation dilution effect has already begun by confused shareholders.
However, I would hasten to add...it appears 2 (TWO) 50K blocks came in on the bid side near the lows of the day, turning this stock around.
I have seen many times in the past, when something good is coming together for an excellently managed blue-chip company,
that the floor specialist will savagely drop the price of the stock by various sophisticated trading strategies, in order to what I call "shake the trees" and see what shares fall out.
Why?
In order to accumulate shares for a new position for an institutional biggie buy order or for personal greed. Regardless of the reason, the effect is the same: It causes stress among the faithful like you and me.
Hang in there. Everything is fine. Put it away and forget about it.
12 months from now, you'll be picking and grinning just like MSFT and CSCO and LU folks are!!!
For further information, you might wish to contact via eMail:
CONTACT: Cincinnati Bell Telephone
Erik Kirkhorn, 513/397-1237
ekirkhorn@cinbell.com
Libby Korosec, 513/397-1589
ekorosec@cinbell.com
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