Huge Arb Opp on BBI vs. BBI-B

[DeltaSpread]

Quote from stock777:

I'll wait until someone else explains this.

I want to see if there are at least 1 or 2 other actual traders left at et.

Well actually the conversion merger of the B&A shares was approved yesterday per my original DD at the ratio of 1:1 and will be closing in a week or so.

You can still squeeze out a couple pennies here on the arb, but some folks picked up a nice 25%-30%++ return.

 

[stock777]

Yep 30% , I know 5 traders that retired for life off this.

 

[stock777]

aint gonna happen, fraud

 

[DeltaSpread]

Quote from stock777:

aint gonna happen, fraud

In 10 Years I have never ever seen anything like this happen.

An official PR and annual corporate shareholder meeting tally of votes last week said the two motions were overwhelmingly approved.

http://finance.yahoo.com/news/Blockbuster-shareholders-OK-apf-1978737289.html?x=0&.v=1

Dinner time yesterday, evening, an ammended 8K with the complete contradiction saying both motions did not pass.

http://biz.yahoo.com/e/100630/bbi8-k.html

 

[stock777]

BBI management obviously a pack of thieves and incompetents, milking every last dime from this dinosaur .

 

[PolymathMind]

yea the PR was bull, i had a feeling they were going to pull back and bring up some more bull and I was right about this.

bbi is officially barbecued. hello BBIQ

 

[PolymathMind]

Quote from DeltaSpread:

Well actually the conversion merger of the B&A shares was approved yesterday per my original DD at the ratio of 1:1 and will be closing in a week or so.

You can still squeeze out a couple pennies here on the arb, but some folks picked up a nice 25%-30%++ return.

i dont really understand what you are saying here?

so your saying if you picked up bbi-b shares and bbi shares that you'd gain 30% when they merged?

 

[Technician]

can someone explain what happened?

 

[sumfuka]

Quote from Technician:

can someone explain what happened?

As plucky duck would say: blockbuster went down the ho~~~le~~

 

[dctdave]

Quote from PolymathMind:

i dont really understand what you are saying here?

so your saying if you picked up bbi-b shares and bbi shares that you'd gain 30% when they merged?

Spread. So long BBI-B and short BBI.

When they would convert in a 1:1 ratio you would collect the discount.

However due to the rejection of the conversion the spread is back to 8 cents or something.

I did this spread a couple of times last months. However last month borrowing the stock was very difficult at my broker. So I wonder how many people really could profit.

When BBI would get BBQ'd the 1 to 1 ratio applies again ;-)

greetz. DCT