About Murray Cass Expertise I am eager to help investors find their way through the muddle of tech investing. I can answer questions concerning tech investing, financial reports, stocks, and options. Having worked in the computer industry for over 20 years I have a good general knowledge of computer technology. I have read over 100 investment books -- mostly the old ones. I spend my time doing investment research, attending annual shareholder meetings, and managing portfolios.
Experience Professional Engineer, MBA, over 20 years experience in computer industry, 9 years intensive investing experience.
Question I am a senior and have been investing in Mutual Funds for the most part. I deal directly with the Vanguard and Fidelity people. Do not use a broker. But when EMachines went on the market I purchased some shares.
Now that they are being bought by EM, I cannot understand the legality of the notice sent me. I understand I am to turn over my shares for $1.09 each by end of December or can hold them and the EM company will eventually pay me for them..
Because the value is almost worthless, I feel the amount I would recieve is of no benefit to me now. I know you cannot advise me directly, but can you tell me what you would do? or ha,ha, tell your grandmother. Thank you for your response. Margie Gusiff
Answer Hi Margie,
I don't have a copy of the note you were sent so I am just guessing here. I also have not been following Emachines, but it sounds to me that you are a minority shareholder and you are being forced out. This can happen when a large majority (I think 90%) of the outstanding common shares for a company are acquired in a take-over attempt.
You do not have much of a choice here. They will take your shares and give you whatever is stated on the letter you got. That price should be at least the market price.
Since not much money is involved you should probably just go with the flow. But if you want clarification or think you are not being treated fairly see if you can get some advice from a broker (maybe a friend's broker as you don't have one) or from the SEC.
