Community Investors Bancorp Gone Private

Friday, September 23rd, 2005 | Going Private Transactions with 7 Comments

Community Investors Bancorp announced that it has completed its reverse stock split and that investors that held less than 300 shares before the split will be receiving $15.00 in cash per share. I purchased 299 shares of Community Investors Bancorp last Friday in my taxable account, so this is great news for me.

The gains I make from this transaction will help offset the loss I had with FFD Financial. I’m glad that I sold for $15 right after the announcement that the company would not be going private, since the stock is now trading below $15.00.


Comments

  • CIMG must also be in play as it has disappeared from the schwabb screen.
    Thanks for all the tips – I should have followed your out on FFDF but I hoped for a bounce – you were right, darn it.
    Thanks
    Charles

    Charles (bookie) September 23rd, 2005 at 2:19 pm
  • I just realized I haven’t addressed the fact that CIMG has also approved its going private transaction. I’ll have to get on that right away.

    I’m sorry that things didn’t work out for you with FFDF. I learned my lesson when I held on to GCFC. When that going private transaction was canceled, the price of GCFC shares fell to levels below what they were before the going private transaction was announced.

    These financial companies face some serious head winds in the future (i.e., interest rates), and the market is unwilling to buy these stocks back when they renege on their word. These small financial companies that propose to go private are starting to appear to be the riskiest deals.

    George September 23rd, 2005 at 7:31 pm
  • Press release says shares have to be held in your own name. You said you have them in your account so I assume it’s in street name. Looks like you’re not getting that cash.

    I just found your site. Could you provide a link that describes your strategy with companies going private ?

    John September 29th, 2005 at 3:45 am
  • Yes please provide a link to your strategy. Nice work on CIMG – I’m all about these risk arbitrage deals!

    Investor Clarity
    http://www.theowong.com

    Theo September 30th, 2005 at 7:30 am
  • John -
    I do own Community Investors Bancorp in street name. Even though the press release might not indicate how street name holders will be treated, the definitive proxy clearly indicated that the company intends to treat street name holders in the same manner as holders of record. In fact, my broker has already indicated they will be affecting the reverse split on my shares.

    John and Theo -
    To learn more about my strategy, I recommend that you read through my Going Private Transactions Archives. I specifically discuss some of my strategy in this article.

    You can find the latest going private transactions listed on the Current Going Private Transactions page. If you have any specific questions, feel free to ask me.

    George September 30th, 2005 at 8:38 am
  • I bought CIBI in June. Perhaps I’m just too quick to jump to conclusions, but I think John is right. I looked at my statement today and noticed I now have 250 shares of CIBN in my account. (CIBN is the new ticker according to the press release – http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050922005907&newsLang=en)

    Jeremy October 3rd, 2005 at 10:01 pm
  • Jeremy and John -

    You motivated me to call CIBI at 419-562-7055. I talked to Ryan Buckly (sp?) there and he confirmed that shareholders that had CIBI (now CIBN) in brokerage accounts (i.e., in street name) did get cashed out. I informed him that CIBI’s press release indicated that shares “held of record in their name” would be cashed out seemed to only indicate record holders would be cashed out. Ryan informed me that “held of record in their name” meant all shareholders, including those holding stock in brokerage accounts.

    There is a good lesson here. Never hesitate to call a company if you have any questions, and always be sure to do your own research. Please call CIBI to confirm my findings for yourself.

    Remember, Fat Pitch Financials only provides commentary and ideas. What you read here is not financial advise and could be inaccurate from time to time, so always do you own due diligence and potentially seek the advice of a financial professional.

    George October 4th, 2005 at 9:03 am

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