[CDNWD] Sent from friend: . . . .Tomorrow is a triple witching Friday. There is probably a concerted effort to keep CDNWD under $20 at the close because of the options expiration. It should then move up nicely during the day on Friday and again on Monday.
Re: holders of old NTKI. The symbol "NTKI" will not be officially
"closed" by the DTC until the end of March. Therefore, many holders of NTKI will not get "updated" to CDNWD shares until then. This means that while they still have trading authority over 0.83 shares of CDNWD for each share of NTKI they used to hold; many are probably not aware of this because their "positions" page with their online broker does not EXPLICITLY state the number of DCNWD shares they hold.
In a trading sense, there no longer is such a thing as an "NTKI share." Likewise, there is current no such thing as a "CDNW" share. Thus, all former NTKI and CDNW holders can trade CDNWD shares in proportion to their former holdings -- REGARDLESS OF WHAT THEIR BROKER TELLS THEM.
In a legal sense, there is no such thing as a CDNWD share until the
"wipe" by the DTC, therefore, all proceeds derived from the sales of
such shares CAN be impounded by your broker until the "wipe." In other words, while you will still have buying power after a sale of CDNWD shares (to buy other financial instruments), your broker COULD prevent you from making an actual CASH WITHDRAWAL of these funds until April 1, 1999. This end-of-month "symbol wipe" is the reason that you can't just trade "CDNW." After the "wipe," the symbols "NTKI" and "CDNW" become available again. At this time, the new corporation will claim (or re-claim, if you prefer) the "CDNW" symbol. [In a similar vein, you may recall that when "C" was given up by Chrysler, Citigroup couldn't get the symbol right away...they had to wait for the "wipe."]
I hope this clarifies things for those who are still confused.
XXX |
