What to Do with Your Stock Tender Offer

Written by

Jae Jun

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Interested in a low risk 12% return in 1 month?

If you took advantage of the low risk stock tender offer I posted a month ago, you should be sitting on at least a 10% gain.

Well done.

Not bad for a single month with no downside to capital loss.

Well, it’s not over yet because now I’m going to tell you how to tender your shares.

GSOL Stock Tender Offer Details Clarified

Here’s the link to the press release.

The important stuff.

  • Tender offer for $10 per share
  • Tender offer ends May 28, 2014
  • Tender offer is not dependent on any financing
  • A max of 5m shares will be tendered
  • There’s no limit to how many shares you can tender but if it goes above the 5m shares, odd lot holders have first priority
  • Odd lot is defined as fewer than 100 shares

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I bought 99 shares in a few of my accounts.

Why 99?

Because I want to make sure my shares are tendered and I’m cashed out properly.

Last time around in 2010, GSOL defined the odd lot as 50 shares or fewer.

we will buy Shares first, from all holders of “odd lots” of 50 Shares or fewer who properly tender all of their Shares and do not properly withdraw them before the Expiration Date – source

But getting 99 shares turned out to be a good bet because from all the other tenders I’ve seen, odd lots are defined as 100 or less.

I’m glad to see that GSOL defines it this way for this stock tender.

First, from all holders of “odd lots” of fewer than 100 shares who properly tender all of their shares and do not properly withdraw them before the expiration date;

Still Time to Make a Quick and Easy 12.5%

Did you miss out on getting it cheaper?

Well, don’t focus on what you missed out on because you haven’t missed anything.

You can still earn a very low risk investment yielding 12.5%.

Here’s what you do.

  1. Buy 99 shares of GSOL across all your accounts. Your personal account, 401K, Roth, wife’s accounts, child’s school account, whatever. See how you can legally have lots of accounts? Use those extra accounts to maximize your absolute profit by buying 99 shares of GSOL for each.
  2. Wait a few days for your shares to settle.
  3. Tender your shares

Fees Associated with Tendering Your Shares

Depending on your broker, they may charge you fees. Every time a financial company tries to hit you with fees, always work to get it waived first.

I have a Fidelity and Optionshouse account.

  • Fidelity charges $38
  • Optionshouse charges $0

I’ll be trying to get the $38 waived by using this line.

“Can you help me out by waiving the fee? Because I’ve been a long time loyal customer regularly contributing to my account. Also, my other brokerage firm doesn’t charge anything so I hope you can help me out.”

How to Tender Your Shares

tender offer

Tender Offer

First time participating in a tender offer?

Weird to say it, but fun huh?

It’s ok to achieve some quick results.

You need these small quick victories sometimes to keep you motivated. Also keeps you distracted from checking your other stock prices and market movements.

Now, it’s real easy to tender your shares.

Since May 28th is the last day, make sure to tender your shares earlier than that.

Don’t wait until the last day because if anything happens on your broker side and it doesn’t go through, you’re stuck with the shares.

Here’s a script you can use if you don’t know what to say.

Call your broker

You: “Hi I want to tender my shares for a stock I’m holding. The stock symbol is G.S.O.L.”

Go through account verification.

Customer service: “Let me check what instructions I have for that stock.”

Customer service: “Yes I do see that GSOL is tendering their shares. I’ll read you the disclaimer and then please confirm at the end.”

blah blah blah

Customer service: “The fee to tender is $xx.xx Would you like to proceed with tendering your shares?”

You: “Yes. And I also hold the same stock in my other accounts. Could you also tender the shares in those accounts please?”

Customer service: “Yes of course.”

One Last Thing…

Don’t tender your shares so quickly. There is a tiny chance that the stock may go past $10. If that’s the case, sell your shares instead of tendering.

Liked this tender offer special situation? If you haven’t already, sign up with your email below to get emails of what I’m doing quicker.

I’m trying to buy another one at the moment. Will let you know when I’m done 🙂

Additional Special Situation Readings


Will tender or sell my shares for $10.

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12 responses to “What to Do with Your Stock Tender Offer”

  1. Rob says:

    Not all brokers will allow odd lot tenders across multiple accounts. I had this problem with Fidelity. Their customer service said the SEC was seeking to limit such activity.

  2. yes that’s true but still good to call and try.
    If they say they can’t do it for other accounts, then hang up and call again.
    Also it will depend on what the accounts are and what the names of the accounts are.

    e.g. they won’t know that i have accounts in with different firms.

  3. Nick says:

    Can you tender through an online trading company like E-trade or Scottrade?

  4. DD says:

    could you tender the shares, buy more and tender those? so on and so forth.

  5. No you can’t. They have a record to prevent such a thing.

  6. Anon says:

    The depository could check their records to filter out duplicate odd lots – this does sometimes happen.

    Also note that publishing about these things tends to eliminate the opportunities. Morgan Stanley for example stopped accepting odd lots in tender offers for CEF after a couple of SA articles pointing out the arbitrage opportunity.

  7. hopefully that isn’t the case. but we’ll have to see. Good info.

  8. earljr says:

    I just found this today. Is it too late if I buy on Tuesday even though there will not be 3 days to settle in my account? (Market closed Monday). Also, anybody know if Ameritrade will tender for free?

  9. no it will be too late. I believe Ameritrade does have a fee.

  10. Iban says:

    Do you know when we will get thhe money of the tendering in our account?

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