Providence Resources

zpehtsfd

nijinsky2 wrote: »

my father has share certificates for 40000 providence shares 0.001 pshares........he also has 175000 shares @ 0.012 shares.........

after the reverse stock split we never received new stock cert...........i recently rang computershare and they are sending cert for 2000 shares

i dont understand how the .001 share is valued the same as the .012 share.

by my calculation the .001 share is split 1:100 and the .012 share is split 1:8 approx.......any insight appreciated

The company did a 1:100 R/S meaning you divide the amount of shares you hold by 100 and multiple the share price by 100. In your case:

(40000 + 175000) / 100 = 2150 shares

Cost Basis: (40000 x .001) + (175000 x .012) = 2140 euros
2140 / (40000 + 175000) = .01
.01 x 100 = 1 euro Cost Basis

So you now have 2150 shares at Average Cost of 1 euro

Ask them why they are only sending you a 2000 share cert. That's nearly 500 euros in fees.

Hope i got the story right. Good luck.

euroboom13

"Cost Basis: (40000 x .001) + (175000 x .012) = 2140 euros
2140 / (40000 + 175000) = .01
.01 x 100 = 1 euro Cost Basis"zpehtsfd

Think the both of you have got 0.01 mixed up with .001 which would give a cost price of 10cent a share not 1euro.

(I believe you have an investment of 2500e, that has a share cert for 2150 shares,which is at 2150 @3.72 = 8000.15e today)

I think the original question ,nijinsky2 ,was trying to figure out why the shares bought at different values could adjust equally( he must have been confusing himself?)

gordongekko

im guessing you have an old cert. Ie the 175000 ended up as 40000 and the 40000 has now become 2000. The nominal value of the shares is not really that relevant.

zpehtsfd

euroboom13 wrote: »

Think the both of you have got 0.01 mixed up with .001 which would give a cost price of 10cent a share not 1euro.

(40000 shares @ .001c) + (175000 shares @ .012c) = .01c Cost average (Pre-split)
Multiple .01c by 100 and you get 1euro Cost Average (Post-Split)

(I believe you have an investment of 2500e, that has a share cert for 2150 shares,which is at 2150 @3.72 = 8000.15e today)

Exactly, so why are they only sending him a 2000 share cert?

euroboom13

zpehtsfd wrote: »

(40000 shares @ .001c) + (175000 shares @ .012c) = .01c Cost average (Pre-split)
Multiple .01c by 100 and you get 1euro Cost Average (Post-Split)



Exactly, so why are they only sending him a 2000 share cert?

sorry.....your 1cent is right.....but 40000 @ 0.001 sounds wrong.....think gordongekko got it in one ,finding old certs and adding them up rather than superseding...The 0.001 is probably a previous" issue price "not the purchase price....same with the 0.012....

computershare has only a cert for 2000 which is prob correct(no charges on splits)

Comordha

Petroceltic is a good exmaple for any Providence investor on what can happen to a share after the motherload is found. Doesn't always translate to big price appreciation. Costs a lot to get it out.