What action if any should i take..Please read

G

gimp570

I am short VDM and just got this notice from etrade


Thu Mar 06 16:52:48 2008 Attention Brokerage Customer RE: VAN DER MOOLEN HOLDINGS SPONSORED ADRCUSIP: 921020103INSTRUCTION DEADLINE: 03/25/08THE TERMINATION DATE OF THE ADR'S WAS 12/28/07HOLDERS MAY CONVERT THE ADRS INTO THE UNDERLYING SECURITY 1 ADR CONVERTS INTO 1 ORDINARY (N9118R139)A FEE OF $3.00 PER 100 ADRS CXL’D & ANY PART THEREOF plus $12.50 CABLE CHARGE WILL BE CHARGED BY THE BANK.**THE ABOVE CHARGES MAY NOT FULLY DISCLOSE ALL CHARGES PERTINENT TO THIS TRANSACTION. **AFTER THE CONVERSION DEADLINE THE AGENT WILL ATTEMPT TO LIQUIDATE THE UNDERLYING SHARES& PROCEEDS (IF ANY) WILL BE ALLOCATED UPON RECEIPT. CONTACT AN ETRADE REPRESENTATIVE TO SUBMIT INSTRUCTION. ANY RESPONSE AFTER CUT OFF 03/25/08 WILL BE BEST EFFORT.

I am not sure what to do should i convert my ADR to 1 share of stock or should i just hold on and wait for the liquidation. Again i am short so i dont know what the right thing to do would be.


Thanks for anyone help

z
 
(Don't hold me to this but)...I think since you're short that you don't have an option other than wait to see if someone who is long makes a decision and it affects you.

Don
 
Quote from Don Bright:

(Don't hold me to this but)...I think since you're short that you don't have an option other than wait to see if someone who is long makes a decision and it affects you.

Don
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Thank you for the respose Don..
..So you would contact etrade and at least try to convert to the common shares...and see if they let me.....

Right?
 
VDM was delisted from the NYSE and now trades as VDMHY in the Pink Sheets. Better cover your short sometime soon before your broker does a buyin at an unknown price to cover your short when the forced conversion of the ADR happens.
 
Quote from jeb9999:

VDM was delisted from the NYSE and now trades as VDMHY in the Pink Sheets. Better cover your short sometime soon before your broker does a buyin at an unknown price to cover your short when the forced conversion of the ADR happens.
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Maybe..i just think its going to Zero so i would rather not cover....but if i no choice then what can i do...

but i would like to know what options i do have
 
gimp -

I would agree with Don. Since you are short & not the "owner" of the shares, the decision to convert or not would not be made by you, but you would possibly be affected based on what the lender of the shares decides to do. Probably "whoever' lended the stock to you or etrade would be the one to decide if they will convert or not.

Maybe you can contact etrade & find out what the options are for the lender of the shares to see how it will affect you.

Best of luck.
 
Quote from gimp570:

I am short VDM and just got this notice from etrade


Thu Mar 06 16:52:48 2008 Attention Brokerage Customer RE: VAN DER MOOLEN HOLDINGS SPONSORED ADRCUSIP: 921020103INSTRUCTION DEADLINE: 03/25/08THE TERMINATION DATE OF THE ADR'S WAS 12/28/07HOLDERS MAY CONVERT THE ADRS INTO THE UNDERLYING SECURITY 1 ADR CONVERTS INTO 1 ORDINARY (N9118R139)A FEE OF $3.00 PER 100 ADRS CXL’D & ANY PART THEREOF plus $12.50 CABLE CHARGE WILL BE CHARGED BY THE BANK.**THE ABOVE CHARGES MAY NOT FULLY DISCLOSE ALL CHARGES PERTINENT TO THIS TRANSACTION. **AFTER THE CONVERSION DEADLINE THE AGENT WILL ATTEMPT TO LIQUIDATE THE UNDERLYING SHARES& PROCEEDS (IF ANY) WILL BE ALLOCATED UPON RECEIPT. CONTACT AN ETRADE REPRESENTATIVE TO SUBMIT INSTRUCTION. ANY RESPONSE AFTER CUT OFF 03/25/08 WILL BE BEST EFFORT.

I am not sure what to do should i convert my ADR to 1 share of stock or should i just hold on and wait for the liquidation. Again i am short so i dont know what the right thing to do would be.


Thanks for anyone help

z
More...

Well The stock stopped trading today....We will see what happens after the liquidation
 
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