My limit order for Calprop (CLPO.PK) was executed today for $0.64 a share. As you might recall from my March 28 post, Calprop announced that its CEO was making a tender offer of $0.65 per share for all outstanding shares. I was a bit surprised that I was able to sell my shares for almost the same price as the tender offer.
I made a pretty nice profit in record time with Calprop. To recap, I purchased 2,500 shares of CLPO at $0.50 on March 28 for a total cost of $1,260 (including commissions). Today, I got $1,589.93 for these 2,500 shares for a total profit of $329.93. That’s 26 percent gain on my original investment. Normally, I would report the compound annual growth rate as well, but because of the short time frame of this trade the annualized rate is well into the thousands.
It looks like setting a limit order at or very close to the announced tender price can be very beneficial. It saved me the $50 reorganization fee my broker would have charged and I got my money quicker too.