Huge mistake

Discussion in 'Stocks' started by giorgio993, Jul 2, 2018.

  1. Hi Guys! I’m new on trading and today i think i’ve made a huge mistake. I put a substantial amount of money on a stock that i discovered emerged successfully today from chapter 11 and i wasn’t able to sell because of day pattern trade rules. On the company’s website says that tomorrow they will be issuing the new stock for unsecured old shareholders, with the same name and the old ones will be exchanged with the new ones on a ratio of 0.003 per share which no matter how much will be the new share cost, will make me lose a huge amount of money. My question is, will i be able to sell my shares tomorrow morning on pre market or at least very early after opening? I’m sorry but i’m new to this and i need help.

    Thank you and i really appreciate
     
  2. Need the ticker, your avg price on the old shares, conversion, conversion date. Etc.
     
  3. Hi, thank you for your reply

    SDRL,
    Avg price $0.155
    Conversion ratio 0.00374
    Conversion date should be tomorrow july 3rd
     
  4. dozu888

    dozu888

    in theory conversion shouldn't lose you money
     
  5. Can you please explain me why?
     
  6. 61766522-F404-485C-B670-DA111C61DA7E.png
     
  7. dozu888

    dozu888

    conversion is old news right? then market already priced it in
     
  8. No this is all today around 2pm
     
  9. m22au

    m22au

    No, this has been known for months.
    http://www.seadrill.com/investor-relations/news.aspx
    https://cases.primeclerk.com/seadrill/
    https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001351413&owner=exclude&count=40

    The only new "news" was the precise number of new SDRL shares that existing shareholders would receive.
    But regardless of whether the number is 0.0037345, or if the number was 0.9999999, the dilution (1.9% of new company) remains the same as it has been known for months.

    I suspect that you were probably unfamiliar with the chapter 11 filing before you bought SDRL stock.
     
    Last edited: Jul 3, 2018
  10. Robert Morse

    Robert Morse Sponsor

    To my knowledge, PDT would prevent you for having buying power and opening a new position, but would not prevent you from closing an open position.
     
    #10     Jul 3, 2018