Just a quick update, I want to let you know that I purchased 1,700 shares of Refocus Group (RFCG.OB) stock on Friday for my son’s Coverdell ESA.
Refocus Group is planning to go private by conducting a reverse share split where 2,000 will become 1 share. Anyone holding less than 2,000 shares will be cashed out and receive $0.35 for every share held just before the reverse split. The details of this transaction can be found in the SEC filings listed on my going private transactions list.
You might wonder why I’m only buying 1,700 shares. Well, I have only enough cash in the Coverdell ESA to purchase 1,700 shares. If I had more cash in that account, I would have bought 1,999 shares of Refocus Group stock. As you might recall, I did buy 1,999 shares of Refocus Group for my Roth IRA last month.
One last note: if you decide to purchase one of these small companies that has stock symbols ending in .ob or .pk, you might need to drop the dot-ending when entering an order with your broker. For example, when I purchased the Refocus Group stock, I used the stock symbol RFCG, and not RFCG.OB, to enter in the purchase order.