Peter,
>Second, should I replace the word 'to' with the word 'no' in your >reply? Legally, unless you find wording that says they MUST give you >notice, I would think you have to claim.
Yes but by the time you ever got done with an attorney, legal fees, and the hastle of arbitration, you're better off trying to negotiate and settle what you can, if you are due anything at all. They have the right to buy back without notice. Thats what they did. The issue is whether it was good customer service, could they have put off the clearing firm for a bit, could thye have found other stock on the street to replace your stock,etc?
I went back to the 16th on times/salesw/quotes..
**Stock wasn't 3/8 x 7...it was 6 3/4x7...bid 3/4 on pcoast for 2k.
Interesting, TRIM is offering stock at 15/16 , 100 shares, nothing gets done in third market and then 10k trades on NYSE at 15/16, then about 7 seconds later 138000 at 7.
So, I guess my question is, how and why did CNS decide to execute the buy-in at that horrible moment? Did CNS have fore-knowledge? The trade appears to have executed on the NYSE, so no one keeps the spread, right, except that lucky seller.
**what did you get filled at? I would assuume you should have gotten most at 15/16. If not, someone might have taken out the 15/16 and filled you at 7, keeping the teenie. Do the math 1/16 x that many shares.
You might want to ask the broker to ask the specialist who did the 15/16 stock? What broker bought it? hopefully its not the same as the person who didyours?
Also, that you see a print on the nyse doesnt mean that noone made a market, it just means it was printed on the nyse..sellers' print. Somone could have bot at 15/16, turned to their buddy to fill at 7, both prints on nyse...someone is always making amarket in something..you made amarket in the stock, you sold at x and bot at 15/16 (or 7).
>Who could that lucky seller be - a professional short-squeezer do >you think?
**Interesting terminology <G> I like it! squeezer...short seller..no i dont think so..
You just had a big piece to fill, no way around it....it was probably a huge percentage of daily volume..you were at their mercy. no iffs and or butts about it...gotta take what you can, thats what a call or buy in does to you. this gets back to , 'should they have given yo more notice so you could have worked the piece yourself? or let your firm work it?"
>Did CNS profit unfairly by this trade? Did CNS have prior >notification for the buy-in? How did that 32,800 share ask suddenly >ecome marketable at 15:51 when the bid was $6 3/8? Did the shares >suddenly shift to a cash account?
First, 3/4 bid. Secondly, you were buying stock. If you had time to work it you could have bit 1/2 or 9/16 but you had to buy stock, no way around it, you were getting bot in and were getting bot in before theclose...only way to do it is a market order, must get filled...to be honest, had there been as little stock on the offer as on the bid, you could have gotten 7 3/8 or so if the specialist really wanted to make you pay.
**Its a market order..if you want to know how market order could get filled, there is a ton that goes into that question. You should read the transcripts from the listed execution chat sessions, yet without being vague, its what the market bears. if there is stock on the offer, you can get filled there,. If a seler comes in and offers lower , on or off the book, you might get there...if you go to a third market you wont get inbetween, unless there is a better offer (similar to the better bid that i am showing at 3/4, whileyou only see 3/8).
>As an aside, Datek says that if I had bought the shares on Friday (on my own, without any notification from Datek) CNS would still have bought my shares in, as my Friday purchase would not have yet settled, and I would have ended up 13800 shares long. Can this be true?
**Not a chance. I could happen, but that would market probably th emost poor customer service I wouldhave ever heard about. Thats a lack of communication between the firm and the broker.
**This actually stresses a conversation I have often with clients. We use Pershing. Pershing is one of the best but they cost. They dont clear trades for $5 a trade, but more in the 17, 18 range. Thats waht they charge us to clear..then of course we have execution cost, act, soes, snet, ecn, charges, etc. but some shops use the cheapest clearing firms. Well, this is what comes of it. No communication, no retirement support, etc.
I have 50 million dollar accounts in addition to the wide range of individual investors. I cant have a cheap, non-service oriented clearing firm. In the end, most find the service a great feature and again worth the few extra bucks.
Steve |
