Class B shares trading cheaper than A?

[website]

How to scan for Class B or C shares that are trading cheaper than A even though they should be valued at the same price?

Example: Blockbuster B shares were illiquid and were trading at times 20cents below the A.

IDT and IDT-C
http://finance.yahoo.com/q/bc?t=2y&s=IDT-C&l=on&z=l&q=l&c=idt

Thanks

 

[zdreg]

what is your goal?

 

[website]

To make money ;-)

One strategy would be to buy the cheaper B and short the A. That is a safe trade. Example short blockbuster A knowing it would go bankrupt. But hedge the trade by buying the B.

 

[gobar]

spwra - 12.31

spwrb - 12.05

 

[zdreg]

Quote from website:

To make money ;-)

One strategy would be to buy the cheaper B and short the A. That is a safe trade. Example short blockbuster A knowing it would go

this angle has been investigated a long time ago. it doesn't work because shares u want to short are unborrowable or there is little liquidity in one of the classes of the stock.

 

[stock777]

thats the least of it in most cases

takes too long for convergence though with the time value of money near zero, thats less of an issue, used to to better before the bots were willing to make 1 cent on an arb. I traded MCDT MCDTA every DAY for profit.