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I purchased ECA via RBC direct investing. Just received a letter regarding Dutch Auction. I am new to this. Are they offering more shares to purchase? And I dont understand the options. There are 5 options to pick. Cash-Specified Price (Non-Odd Lot, or odd lot), cash-purchase price (Non-Odd Lot, or odd lot), or Take no action . The deadline is Aug 12, 2019.
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Private answer
When we talk upside in our newsletter, or anywhere else for that matter, we are referring to analyst estimates. Analysts have placed a 1 year target price on the company of $13.70, which means in one years time, they figure it could be trading at that price level. By today's pricing ($5.42) that means they figure the stock has about 152% upside. Marked as spam
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Private answer
Hey there! No, they aren't offering more shares for purchase. They are doing the opposite. Due to Encana's share price being such a bargain, the company is buying back $213 million dollars worth of shares for cancellation. In terms of non and odd lots, typically odd lot is anything less than 100 shares of a stock. So if you were planning on selling back more than 100 shares to Encana, you'd be a non odd lot. Cash specified price would be like you saying "I am willing to sell xx amount of shares for $xx" A cash purchase price would be like saying "I am willing to sell xx amount of shares for the determined price after auction" So if you choose option A, the cash specified price and agree to sell xx amount of shares for say $6, if the final price of the offering after the auction is $6.10, your shares will be purchased. If the final price of the offering after the auction is $5.90, because you want more than is being offered, you will keep your shares. If you choose option B, you are essentially saying you agree to sell xx amount of shares for the final price. So whatever it ends up being, if they haven't filled the $213 million requirement by the time they get to your shares, they will be sold at the offering price. Obviously take no action means that you'd like to hold your shares. I hope this makes sense. If you're interested in reading a bit more, have a look at this https://www.theglobeandmail.com/investing/markets/stocks/ECA-T/pressreleases/3301741/ Marked as spam
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