Comments on: FFD Financial Blow Up http://www.fatpitchfinancials.com/116/ffd-financial-blow-up/ Special situation stocks and value investing Tue, 07 Feb 2012 02:35:15 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Old Niu’s Blog » A Small Investor’s Advantage http://www.fatpitchfinancials.com/116/ffd-financial-blow-up/comment-page-1/#comment-236 Old Niu’s Blog » A Small Investor’s Advantage Sat, 08 Oct 2005 23:52:01 +0000 http://www.fatpitchfinancials.com/?p=116#comment-236 [...] Even for those deals that have tender limits, I want to make sure there are not too many small investors competing against me. The metric I use is what I call “maximum initial investment” (MII). Using MAX as an example again. The maximum number of shares you could buy was 500 shares, and the potential price you could get was about $3.40, resulting in a MII of $1,700 (500x$3.40). I tend to avoid deals with MII over $5,000. This is because those deals tend to attract a lot more small investors. When too many people jump in to take advantage, it increases the chance of the deal falling through. Remember that these are small companies trying to save the legal/compliance expenses of $500,000 to $1 million a year. They are willing to spend some money, say $1 million, to cash out the small investors. But they tend to underestimate the number of small investors like you and me who are taking advantage of the deal. In the end they will find it’s too expensive of them to carry out the cash-out offer. George himself learned a big lesson on the FFDF deal (with the MII of about $6,000). So the second rule is to avoid the crowd by looking at smaller deals. [...] [...] Even for those deals that have tender limits, I want to make sure there are not too many small investors competing against me. The metric I use is what I call “maximum initial investment” (MII). Using MAX as an example again. The maximum number of shares you could buy was 500 shares, and the potential price you could get was about $3.40, resulting in a MII of $1,700 (500x$3.40). I tend to avoid deals with MII over $5,000. This is because those deals tend to attract a lot more small investors. When too many people jump in to take advantage, it increases the chance of the deal falling through. Remember that these are small companies trying to save the legal/compliance expenses of $500,000 to $1 million a year. They are willing to spend some money, say $1 million, to cash out the small investors. But they tend to underestimate the number of small investors like you and me who are taking advantage of the deal. In the end they will find it’s too expensive of them to carry out the cash-out offer. George himself learned a big lesson on the FFDF deal (with the MII of about $6,000). So the second rule is to avoid the crowd by looking at smaller deals. [...]

]]> By: George http://www.fatpitchfinancials.com/116/ffd-financial-blow-up/comment-page-1/#comment-201 George Sat, 24 Sep 2005 00:30:48 +0000 http://www.fatpitchfinancials.com/?p=116#comment-201 I think I will be writing a note to enforcement@sec.gov about Trent Troyer's trade. Is anyone here familiar with writing a complaint for something like this? Are there other agencies that should be contacted and informed about Trent Troyer's actions? I think I will be writing a note to enforcement@sec.gov about Trent Troyer’s trade. Is anyone here familiar with writing a complaint for something like this? Are there other agencies that should be contacted and informed about Trent Troyer’s actions?

]]> By: Mike http://www.fatpitchfinancials.com/116/ffd-financial-blow-up/comment-page-1/#comment-200 Mike Fri, 23 Sep 2005 23:54:41 +0000 http://www.fatpitchfinancials.com/?p=116#comment-200 George my friend.. I'm not sure how Trent Troyer was allowed to trade his shares just before his announcement that the "going private" transaction was being cancelled. If it wasn't illegal, it should have been. If not illegal, it surely can be viewed as unethical. We all except the risks when we attempt to profit on arbitrage, so I can't be too dissapointed. But, for the President & CEO to look as though he may have profited on insider information just leaves a bad taste in my mouth for this company. It's just too outrageous! George my friend..

I’m not sure how Trent Troyer was allowed to trade his shares just before his announcement that the “going private” transaction was being cancelled. If it wasn’t illegal, it should have been. If not illegal, it surely can be viewed as unethical.

We all except the risks when we attempt to profit on arbitrage, so I can’t be too dissapointed. But, for the President & CEO to look as though he may have profited on insider information just leaves a bad taste in my mouth for this company. It’s just too outrageous!

]]> By: George http://www.fatpitchfinancials.com/116/ffd-financial-blow-up/comment-page-1/#comment-190 George Sat, 17 Sep 2005 12:31:59 +0000 http://www.fatpitchfinancials.com/?p=116#comment-190 You might want to check out http://www.secinfo.com or http://www.pubsub.com for free SEC alerts. You might want to check out http://www.secinfo.com or http://www.pubsub.com for free SEC alerts.

]]> By: Community Investors Bancorp Purchase - Fat Pitch Financials http://www.fatpitchfinancials.com/116/ffd-financial-blow-up/comment-page-1/#comment-185 Community Investors Bancorp Purchase - Fat Pitch Financials Fri, 16 Sep 2005 21:46:51 +0000 http://www.fatpitchfinancials.com/?p=116#comment-185 [...] Join me in my quest to find dollar bills for 40 cents… Value investing and personal finance discoveries for those seeking to invest with a margin of safety in stocks with wide moats and to profit from arbitrage opportunities. Spirit : Archives : Links : About : Contact : Saturday, Sep 17th - 12:46pm « FFD Financial Blow Up [...] [...] Join me in my quest to find dollar bills for 40 cents… Value investing and personal finance discoveries for those seeking to invest with a margin of safety in stocks with wide moats and to profit from arbitrage opportunities. Spirit : Archives : Links : About : Contact : Saturday, Sep 17th – 12:46pm « FFD Financial Blow Up [...]

]]> By: Mat http://www.fatpitchfinancials.com/116/ffd-financial-blow-up/comment-page-1/#comment-184 Mat Fri, 16 Sep 2005 18:32:56 +0000 http://www.fatpitchfinancials.com/?p=116#comment-184 Does anyone have a free or cheap email alerts for SECand news so we could be the first to sell? Does anyone have a free or cheap email alerts for SECand news so we could be the first to sell?

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