So I phoned Scottrade. I explained to "Scotty" why I was calling and immediately launched into my trademark list of questions. Most important of which was ... is this a wise move for me?
I'm not sure how much he could tell me or wanted to tell me since I'm a teeny-weenie fish among Corning's owners. But he provided me with a sounding board for my ideas and helped me determine my answer.
There are few key ideas at play here. Firstly a tender offer sounds sweet, but in my case, is not sweet enough. A tender offer is a third party's solicitation to purchase a substantial percentage of a company's shares, according to the SEC. The biggest issue for me? I only bought the stock last week at 20.19. So the 20.50 offer would give me 31 cents a share. That's 3.10 minus the $7 commission I paid to buy the stock in the first place and a $25 reorganization fee I would owe Scottrade to transfer it to TRC Capital. My goal is to make money, not give it back.
I decided to leave a tender moment alone and said no. The basic math is enough to see why. I also googled TRC and found a few interesting articles, mostly from the companies imploring stockholders to resist TRC's "tender" moments. I read this one: Corning Recommends Rejection of below-Market Mini-Tender Offer by TRC Capital Corporation. Gannett said something similar in May. (Gannett's stock is 18.04 today compared toTRC's offer of 29.45. Yikes!)
The bottom line is this: I bought GLW last week because of what I read in the June issue of Money Magazine. Corning is big into LCDs, which are used in everything from electronics to cars (trying to overlook the news today that this sector is bloated and will stall in Q3) and makes emission-control systems for trucks -- an issue that gets air time daily as we try to walk the talk of our environmental consciousness. I'm into Corning (and My Economic Stimulus) for the long haul. I'm not sure how long that is ... but I'm certain it's longer than one week.
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