Jacksonville Bancorp (JAXB) is in the midst of a rights offering that I’m interested in following. The document describing the offering can be found here. One reason I’m interested in this offering is that it has similar characteristics to an offering we followed a short time ago in EVBS. The EVBS rights offering, and subsequent […]
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For those of you who followed our AERL trade based on the rights offering, we are taking profit on the majority of our position here. We bought the stock at an average price of $3.35 last week into the expiring rights offering and have now made 19% in just four business days. Note that this […]
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Often a rights offering can be traded in the same way you would trade a warrant expiration. As long as the rights are publicly traded, arbitrage between the common and the rights will result in downward pressure on the common stock. While there is usually little profit for the average investor in the arbitrage, you […]
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