I got some great news when I got back into town today. I discovered that the shares of FragranceNet.com (FGNT) in my BrownCo account and my son’s Coverdell Education Savings Account have been cashed out.
Let me first start with an update regarding the partial cash out of the FragranceNet.com shares in my BrownCo account. As you might recall, last week I learned some additional details regarding the FragranceNet.com cash out of shareholders owning less than 499 shares. I sent BrownCo an email regarding what I learned from Mr. Dennis Apfel, the CEO of FragranceNet.com. This is the response I received from BrownCo on Friday, December 23, 2005:
Thank you for contacting BrownCo, LLC; An E*TRADE Financial Company.
I understand your concern. I am showing that the remaining shares of
Fragrancenet.com have been cashed out. You account has been credited for
the full amount due.
Please be advised that your concerns are very important to us, and your
complaint has been forwarded to our management team for review.
Sure enough, when I logged into my account today, I discovered that the remaining 124 shares of FragranceNet.com in my account were cashed out at $0.97 per share. It looks like BrownCo finally agreed with my stubborn insistence that all 499 shares should be cashed out, especially given the information I sent then regarding what I learned from the CEO of FragranceNet.com. It really shouldn’t have been this hard but BrownCo really made a mess of this going private transaction. The lesson here is that it pays to keep an eye on your broker’s actions in your account.
On another note, I also discovered that all 499 shares of FragranceNet.com in my real money portfolio, which is my son’s Coverdell Education Savings Account at Firstrade.com, were cashed out today. I received $484.03 in the account for the 499 shares and I didn’t even get charged with a reorganization fee. Tomorrow, I will figure out the performance statistics for this transaction and share them with you here.