A Financial Revolution 


February 16, 2006
Update on Going Private Transaction - Collins Industry
A couple months ago I posted about opportunities in going private transactions. Erich left a comment that he was getting anxious because there wasn't much information on the status of the transaction. Well, after an email to my brokerage firm, I received the following response:


...Thank you for your recent inquiry regarding Collins Industries. We will be submitting participation instructions on behalf of our clients who hold less than 300 shares. Participants will receive cash for their shares at a rate of $7.70 per pre-split share. After we submit instructions, your shares of COLL will receive a temporary ticker symbol. This symbol will be in place to identify your shares during the reorganization process. Cash will be deposited to your account once it is received from the transfer agent. If you require additional assistance, please contact us...

I also checked with Mellon Financial, the transfer agent for Collins Industry, and the man on the phone said the instructions for the cash out have been sent to stockholders/brokers.

When investing in these transactions, it's important to recognize that these are often small companies and there aren't a lot of press releases or news reports available. On the other hand, it's easy to pick up the phone and call the investor relations department at the company (or get your money's worth by asking your brokerage firm to do it.)

[Update 3/3/06: I checked my brokerage site this morning and I see the reverse split was completed. Now I just wait for my money.]

For Additional Information:


3 Comments:
Anonymous Jason said...

I was not aware of this opportunity before I stumbled across it in your blog. I am trying to learn more about it without having to pay to subscribe to fat pitch financials. Any tips about breaking this process down into manageable steps? I am one reader who would be very interested. I am still trying to figure out the Edgar website so I am very green I guess. Thanks

2/17/2006 3:22 PM  

Anonymous Jeremy said...

Jason... Unfortunately, Edgar is not the most user-friendly site on the web. However, once you get accustomed to the site it will give you all the info you need.

If you're interested in researching going private transactions, I suggest you start with my original post. Then, if you're ready to start your research, open three browser windows/tabs. Open the first window to 10K Wizard and search for recent submissions of form SC13e3. Open the second window to Edgar and search for each company listed on 10K Wizard using the ticker symbols. The reason I suggest using two sites is because 10K Wizard provides several days of submissions but charges you to see the forms; Edgar lists only one day of submissions but offers all historical forms for free. Open the third window to a stock quote site (e.g., Yahoo! or MSN.)

Once you find the filings on Edgar, look for the most recent PREM14A (preliminary proxy). This form is generally easier to read than the SC13e3 and provides the cash-out value. Get the most recent stock quote and compare the cash-out value to the recent price. If the potential profit looks attractive, go back to Edgar and read the details in the SC13e3.

Once you get the process down it goes quickly. However, there are a lot of worthless deals for every potentially profitable one. You may find that it's worth the money to subscribe to George's list of transactions at Fat Pitch Financials. I also recommend the old posts on FPF; they are a great learning tool.

2/20/2006 3:01 AM  

Anonymous George said...

Hi Jeremy -

Thanks for the praise regarding my information on going private transactions at Fat Pitch Financials. I too look forward to receiving cash for Collins Industries. One of my Contributors discovered that there was a communication problem between Collins Industries and the transfer agent that caused some of this delay in cashing out street name holders of the stock. Everything should be on track now hopefully.

2/27/2006 8:41 AM  

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