FYI CAH shareholders

[rayray]

Okay, unless I'm misunderstanding this it looks like CAH has decided to retire odd lot shares, basically, anyone who owns less then 99 shares. If the investor owns 100 shares or more your investment will not be affected. The investors option is to sell/retire any odd lot or buy to equate at least 100 shares, price is presently undetermined for the buy/sell orders. Apparently, shareholders have until 1/26/17 (cutoff date) to react one way or the other.

CAH is a fairly new holding of mine and I invest for the long term. I'm a small time investor that invests in quarter increments in order to reach a full position. Presently, I own 45 shares, an odd lot, in my Traditional IRA, well, I didn't plan on selling these shares so it looks like a portion of my 2017 contributions will be forced into buying additional shares.

On Tuesday I'm going to call Fidelity to find out if Odd Lot shareholders are actually forced to buy or sell OR if the investor has the option of doing nothing. I never encountered this before.

[navyasw02]

Interesting, keep us posted.  If there's a premium to sell or discount to buy I'd be interested

[DividendDragon]

I own less than 100 shares.

Where did you get this information from?
I have heard nothing.

[Dividend Watcher]

Don't know where you heard this from. Companies have no say in the transactions or holdings in the open market. The only ones they can specify this with is if you participate in the company-sponsored direct purchase/DRIP program through Computershare or similar company.

Orrrrr, you're a director, in which case take some of that outrageous paycheck and buy the shares already.

[rayray]

From Investopedia,

"Since an odd lot is considered fairly insignificant to larger institutions, a company may choose to eliminate any odd holdings from the marketplace. This can include buying out the associated shareholder at a premium, offering additional shares to the shareholder to create a round lot, or engaging in a reverse split designed to result in the odd lot becoming equivalent to less than one share to pay the investor cash for a residual holding."


http://www.investopedia.com/terms/o/oddlot.asp


Fidelity sent me a notification/message regarding my CAH holding. I went back and re-read the message and it does indicate it's a "Voluntary Program." They say the cost is $3 per share up to a maximum of $50 per account participating in the program. I don't get it, trades at Fidelity are $7.95, why would one want to spend $50? I am now assuming the shareholder does not have to participate and just hold their "Odd Lot" shares.

[rayray]

Just got off the the phone with Fidelity and it was clarified. This "Odd Lot" offer is through CAH itself and one does not have to participate, it's voluntary for anyone who owns less then 99 shares.


Sorry for the confusion, as a Director, I should be more on top of these things!