I was happy to see that I received cash in my son’s Coverdell ESA today for the Bestway stock that I purchased back on February 7, 2005.
For the 99 shares of Bestway that were in my son’s account, I received $1,287.00. My total profit for this transaction was $184.06. That is a return of greater than 16 percent on my original investment of $1,102.94. Using Excel’s XIRR function, the annualized rate of return comes to just over 37 percent for this transaction that took just under six months to complete.
This transaction took a bit longer than I expected. I was a bit surprised by how long it took to receive cash after the reverse split was completed. In the future, I will be factoring in a longer period of time between when a reverse split is completed and when cash is distributed to fractional shareholders.