On February 14, I purchased 200 shares of Central Federal Corporation (GCFC) for $12.39 a share. GCFC is another “going private” transaction. However, there is a slight bit more risk this time. Management is concerned that too many people are taking advantage of this deal (why wouldn’t we), so they have stated that they reserve the right to change the terms at any time. They just recently announced that instead of doing a reverse split of 1-500 they will be doing a 1-325 reverse split to save money. Shareholders that currently have less than 325 shares will receive $14.50 per share.
The confusion over the revised terms has depressed the price of the stock, so I decided to take advantage of the situation. With this latest purchase, my son’s ESA account is just about fully invested. I’ll keep you updated on how things turn out.