You might remember my investment in PVC Container Corp. that I made back on March 8, 2006. A few weeks ago I mentioned that PVC Container shareholders approved the deal. Today I finally received the cash in the Special Situations Real Money Portfolio.
Let me run through the stats on this transaction. I purchased 1,600 shares of PVC Container for $2.31 per share on March 8, 2006 for a total cost of $3,702.95, including commission. At the end of the day on April 17th, I received $2.39 per share just as specified in the terms of this deal. That comes to a total of $3,824.00 in cash that I just received. I netted $121.05 on this little investment, which is a 3.3 percent gain on my original investment. In the 41 days that it took for this transaction, I made an average annualized rate of return of 29 percent. While this was not one of my highest rates of return, it was still very good and had a low risk.
Today, I reinvested some of the proceeds from this deal into another special situation investment. This time I’m investing in a closed end fund trading at a nice discount to net asset value (NAV) that is planning on conducting a tender offer in the near future. I found out about this great opportunity from one of the members of Fat Pitch Financials Contributor’s Corner. I’ve just posted the details of this opportunity on Contributor’s Corner.
In addition to the Going Private Transactions List, I also track odd-lot tender offers and other special situation opportunities that members of Contributor’s Corner submit. I reward great ideas like the one I just received with an additional week of access to Contributor’s Corner. No good deed should go unrewarded. If you are interested in receiving access to Contributor’s Corner please consider supporting Fat Pitch Financials.