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academy · special situations

Academy

How is the list card read?

Each number marks one line or figure of the card; below, what it shows and how it is read. The card is a schematic: it carries no deal's data.

  1. 1Line 1 · Issuer Identity & Form TO-I

    Identifies the listed company (ticker · exchange · country) launching the formal self-tender regulated by the SEC through Schedule TO-I, next to the family chip and the days elapsed since the announcement.

  2. 2Line 2 · Repurchasing Company & Rationale

    Name and sector of the listed company that retires lots under 100 shares to save thousands of dollars a year in custody and corporate mailing.

  3. 3Line 3 · Issuer, Proration Exemption & Trap 1 (Cut-off Date)

    Labelled «Issuer», it names the company itself buying back without proration. Before trading, confirm in the offer document that the exemption applies 'as of Expiration Date' (arbitrageable in the market today) and contains no backdated anti-arbitrage traps.

  4. 4Line 4 · Score & DRI

    Two chips: the 0–100 composite Score (IRR, probability of close, break downside and alpha; it is not the case page's RAAS) and the DRI, the Deal Reliability Index. Neither replaces the audit of the 5 forensic traps in the Traps tab.

  5. 5HERO Metric: Preferential Spread & IRR

    The direct differential, in percent, between the repurchase price the issuer guarantees and the spot price; below it, the annualised IRR, which soars in odd-lots because the offer is so short. Without a formal date, the IRR reads «Pending regulatory resolution».

  6. 6Spot Price on the Exchange (99 Shares)

    Market entry price, with the offer price below it. Buying the canonical 99-share lot maximises the exemption without crossing the threshold.

  7. 7Net Profit & Fee Drag (on the case page)

    The card shows neither the downside nor the net profit: the downside to the unaffected price (T-1) is in the case page's Summary and the gross gain on 99 shares in its Calculator. Trap 4 audit: subtract your fixed fees from that gross gain to confirm a positive, solid net dollar profit.

  8. 8Footer: Stage, Close & Trap 2 (SEC Rule 14e-4)

    The footer shows the current stage and the close date (formal or estimated). The deadline to instruct your broker (broker cut-off) usually falls before the official expiration; and remember to hold a Net Long Position without derivatives, on pain of federal fraud.