I was away on business travel this week. When I arrived home yesterday, I found a pleasant surprise. I discovered cash in my son’s Coverdell ESA for the completed going private transaction for Mercury Air Group. The cash was deposited in his account on October 6, 2005.
As you might recall, I purchased 300 shares of Mercury Air Group back on August 23, 2005 for a total of $1,042.95 . On September 19th, Mercury Air Group completed its going private transaction, and three weeks later I received $1,200 in cash for my shares.
I made a total of $157.05 in profit, which is a 15% gain on my original investment. Annualizing that rate of return using Excel’s XIRR function, I determined that it comes out to over 220% APY!