mlkrborn
15 years ago
ProShares Plans Reverse Splits on 9 ETFs
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ETFguide.com, On Friday April 9, 2010, 2:26 pm EDT
SAN DIEGO (ETFguide.com) - ProShares announced today that it will execute reverse share splits on nine ProShares ETFs.
A reverse split reduces the number of shares outstanding of a fund, and results in a proportionate increase in the NAV and price per share for that fund. Reverse splits do not change the value of a shareholder's investment. For example, for the 1-for-5 reverse splits, every five pre-split shares held by a shareholder will result in the receipt of one post-split share, which will be priced five times higher than the pre-split shares.
The reverse splits will be effective for shareholders of record after the close of the markets on April 14, 2010. Seven of the funds will execute a 1-for-5 reverse split of shares, and two will execute a 1-for-10 reverse split of shares. The funds will trade at their post-split prices on April 15. The ticker symbols for the funds will not change, and all will continue to trade on NYSE Arca.
The nine ETFs that will be executing a reverse split are listed below along with the split ratio.
--UltraShort Oil & Gas (NYSEArca: DUG - News) - Split Ratio 1:5
--UltraShort MSCI Emerging Markets (NYSEArca: EEV - News) - Split Ratio 1:5
--UltraShort FTSE/Xinhua China 25 (NYSEArca: FXP - News) - Split Ratio 1:5
--UltraShort Gold (NYSEArca: GLL - News) - Split Ratio 1:5
--UltraShort Basic Materials (NYSEArca: SMN - News) - Split Ratio 1:5
--UltraShort Real Estate (NYSEArca: SRS - News) - Split Ratio 1:5
--Ultra Real Estate (NYSEArca: URE - News) - Split Ratio 1:5
--Ultra Financials (NYSEArca: UYG - News) - Split Ratio 1:10
--UltraShort Silver (NYSEArca: ZSL - News) - Split Ratio 1:10
Illustration of a Reverse Split
Here's an example of how a 1-for-5 reverse split works:
Let's assume a shareholder owns 100 shares of a fund with a hypothetical NAV of $9 which puts the total value of the investment at $900. After a 1-for-5 share split, the shareholder now owns 20 shares with a hypothetical NAV price of $45 and the total value of the investment is the same - $900.
Fractional Shares
For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example: a multiple of 5 for a 1-to-5 split), the reverse splits will result in the creation of fractional shares. Post-split fractional shares will be redeemed for cash. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders.
Why is ProShares doing a reverse split on these nine ETFs?
According to the company, for funds with lower nominal prices, bid/ask spreads represent a higher percentage of the transaction price than for higher-priced funds, increasing both costs and volatility even when the spread is tight.
For example, a penny spread on a $5 stock is 20 basis points (0.2%), while a penny spread on a $50 stock is two basis points (0.02%) one tenth the amount for the lower priced stock. Further, commissions charged by brokers who assess their clients on a per-share basis may be smaller, as investors will need to buy or sell fewer shares to meet their investment goals.
Also, portfolio managers are in some cases disallowed from investing in securities with a low share price, so the reverse splits will help them to comply with investment mandates.
*~1Best~*
15 years ago
ProShares Ultra Financials Fund (Symbol: UYG) Class Action Filed by Bernstein Liebhard LLP
NEW YORK, NY -- (Marketwire) -- 10/13/09 -- Bernstein Liebhard LLP filed a class action lawsuit on October 13, 2009 in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired shares in the Ultra Financials Fund (the "UYG Fund") (NYSE: UYG), an exchange-traded fund ("ETF") offered by ProShares Trust ("ProShares"), pursuant or traceable to ProShares' false and misleading Registration Statement, Prospectuses, and Statements of Additional Information (collectively, the "Registration Statement") issued in connection with shares of the UYG Fund (the "Class"). The Class is seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act").
The complaint names ProShares, ProShare Advisors LLC, SEI Investments Distribution Co., Michael L. Sapir, Louis M. Mayberg, Russell S. Reynolds, III, Michael Wachs, and Simon D. Collier, as defendants (collectively, "Defendants"). ProShares sells its Ultra and UltraShort ETFs as "simple" directional plays. As marketed by ProShares, Ultra ETFs are designed to go up when markets go up; UltraShort ETFs are designed to go up when markets go down. The UYG Fund is one of ProShares' Ultra ETFs. The UYG Fund seeks investment results that correspond to twice (+200%) the daily performance of the Dow Jones U.S. Financial Index ("DJUSFI"). Accordingly, the UYG Fund is supposed to deliver double the return of the DJUSFI, which, from January 1, 2009 through July 30, 2009, increased approximately 1.47 percent. Rather than increase approximately 2.9 percent (double), the UYG Fund has fallen approximately 25 percent.
The complaint alleges the Defendants violated the Securities Act by failing to disclose the following risks, inter alia, in the Registration Statement: (1) if UYG Fund shares were held for a time period longer than one day, the likelihood of catastrophic losses was huge; and (2) the extent to which performance of the UYG Fund would inevitably diverge from the performance of the DJUSFI -- i.e., the overwhelming probability, if not certainty, of spectacular divergence.
Plaintiff in the UYG Action seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of ProShares UYG. If you purchased or otherwise acquired ProShares UYG shares, and either lost money on the transaction or still hold the shares, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than November 23, 2009.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you purchased or otherwise acquired shares in the UYG Fund or any ProShares leveraged funds, and either lost money on the transaction or still hold the shares, please contact Christian Siebott or Joseph R.
Seidman, Jr. at (877) 779-1414.
Bernstein Liebhard has pursued hundreds of securities and consumer cases and recovered approximately $2 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last seven years.
Bernstein Liebhard has also filed cases concerning the SRS, SKF, DUG, and DXD funds. You can view a copy of these complaints, as well as the UYG complaint, online at http://www.bernlieb.com, or obtain them from the court.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414
www.bernlieb.com
ATTORNEY ADVERTISING. © 2009 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information
Christian Siebott
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
http://www.bernlieb.com
(212) 799-1414
*~1Best~*
15 years ago
SPX 1028 ~> Another day of Dr Greenshoot Brain-Fuker
RST, negative divergences, market hype
$COMPX 2024.43
$INDU 9543.52
$INX 1028.12
http://www.auditthefed.com/spread-the-word/
“The high office of the President has been used to foment a plot to destroy the American's freedom and before I leave office,
I must inform the citizens of this plight.” — President John Fitzgerald Kennedy
- In a speech made to Columbia University on Nov. 12, 1963, ten days before his assassination!
"Government spending is always a “tax” burden on the American people and is never equally or fairly distributed.
The poor and low-middle income workers always suffer the most from the deceitful tax of inflation and borrowing."
—Congressman Ron Paul
"You are a den of vipers! I intend to rout you out, and by the Eternal God I will rout you out.
If the people only understood the rank injustice of our money and banking system, there would be a revolution before morning."
—President Andrew Jackson (1829-1837)
"If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation,
the banks and corporations that will grow up around them will deprive the people of all property
until their children wake up homeless on the continent their fathers conquered."
—Thomas Jefferson (1816)
*~1Best~*
15 years ago
Paradoxically, we are seeing the same, but since Madoff is an individual, he is not getting away with it.
"must-know" information his comment on Cap-n-Trade bill on p.24.
To download
http://www.scribd.com/doc/16868596/How-Goldman-Sachs-Pumped-and-Dumped-US-Economy
To read in full screen
http://www.scribd.com/full/16868596?access_key=key-k5z6qsr8uyarm9jnbi8
_____________________________________________________________
Madoff Sentenced to 150 Years, Sending Strong Signal
CNBC.com
| 29 Jun 2009 | 12:04 PM ET
Swindler Bernard Madoff was sentenced to 150 years, a federal judge ruled Monday, calling his claims less than compelling.
U.S. District Judge Denny Chin said Madoff's breach of trust was massive, and that he lied to investors and to the SEC to buy homes, yachts and pay country club fees. He called the maximum sentence symbolic.
"Not a single letter was submitted in support of Madoff," Chin said. "Not friends, not family. That is telling."
The sentence is in line with the judgment that prosectors were seeking for the multi-billion dollar fraud scheme.
Madoff's attorney Ira Sorkin had tried to argue that sentence was excessive.
While Madoff, dressed in a dark suit, white shirt and tie, sat with his head down and his back to his victims as they delivered their testimony, he stood and faced them during his statement and apologized.
"I cannot offer an excuse for my behavior," Madoff said. "How do you excuse deceiving investors and 200 employees? How do you excuse lying to my sons and two brothers? How do you excuse lying to a wife who stood by me for 50 years and still stands by me? There is no excuse for that. I made a terrible mistake."
He went on to say he left a legacy of shame for his family.
Nine victims offered heart-wrenching testimonies earlier in the day, asking for the judge to deliver the maximum sentence. Said Burt Ross, who lost $5 million in the scheme, "Commit Madoff to prison for the rest of his life. May Satan grow a fourth mouth where Madoff can spend the rest of eternity."
Ruth Madoff is expected to deliver a statement later in the day.
The jailed Madoff already has taken a severe financial hit: Last week, a judge issued a preliminary $171 billion forfeiture order stripping Madoff of all his personal property, including real estate, investments, and $80 million in assets his wife Ruth had claimed were hers. The order left her with $2.5 million.
# CNBC Special Report: The Bernard Madoff Story
# CNBC Slideshow: Gallery of Rogues
The terms require the Madoffs to sell a $7 million Manhattan apartment where Ruth Madoff still lives. An $11 million estate in Palm Beach, Fla., a $4 million home in Montauk and a $2.2 million boat will be put on the market as well.
Before Madoff became a symbol of Wall Street greed, he had earned a reputation as a trusted money manager with a Midas touch. Even as the market fluctuated, clients of his secretive investment advisory business — from Florida retirees to celebrities such as Steven Spielberg, actor Kevin Bacon and Hall of Fame pitcher Sandy Koufax — for decades enjoyed steady double-digit returns.
But late last year, Madoff made a dramatic confession: Authorities say he pulled his sons aside and told them it was "all just one big lie."
Madoff pleaded guilty in March to securities fraud and other charges, saying he was "deeply sorry and ashamed." He insisted that he acted alone, describing a separate wholesale stock-trading firm run by his sons and brother as honest and legitimate.
© 2009 CNBC.com
URL: http://www.cnbc.com/id/31610169/
*~1Best~*
16 years ago
Market manipulation -- re US Banking Sector Needs $1Trillion in Capital
Criminals continue to pump markets with printing machine to dupe Americans with false sense of economic recovery
US Banking Sector Needs $1 Trillion in Capital: KBW
BANKS, FINANCIAL INSTITUTIONS, BANK STRESS TEST, FINANCIAL CRISIS
Reuters | 24 Apr 2009 | 03:38 AM ET
U.S. banks including Bank of America, JPMorgan Chase and Wells Fargo may need to raise $1 trillion of capital, Keefe, Bruyette and Woods analysts said in a report on Thursday, after they stress tested the industry.
The brokerage published results from its own stress tests a day before the government is due to brief banks on their performance in its test, which U.S. Treasury Secretary Timothy Geithner has said is designed to determine the capital needs of banks.
The government is testing 19 banks and KBW applied its own analysis to the 17 banks that it covers in this group.
JPMorgan, KeyCorp, PNC Financial Services Group, Wells Fargo and Fifth Third Bancorp are among the banks that may need to raise capital, the brokerage said, according to its own analysis.
Bank of America is the most likely of the 17 banks to need another round of government capital -- as much as $15 billion to $20 billion -- from the Capital Assistance Program (CAP), KBW analysts wrote.
Under KBW's estimates Capital One Financial, Morgan Stanley and U.S. Bancorp can avoid raising capital.
"Our stress tests are much more granular than the government's, from what we can discern," said Fred Cannon, analyst at KBW.
The brokerage included off-balance sheet exposures as well as detailed assumptions for individual bank's portfolios, required levels of loan-loss reserves and capital and the level of pre-loss earnings the banks can achieve.
Including off-balance sheet exposures, for example, is what places JPMorgan and Wells Fargo in the category of banks that need to raise capital, Cannon said.
Both Wells Fargo and JPMorgan are seen as survivors of the financial crisis and their share prices have weathered the downturn better than the rest of the sector.
Some details of the government's stress test have leaked out in the last few days but it is not clear if off balance sheet exposures will be included, or how the government will treat securities, Cannon explained.
On Tuesday, Geithner said most U.S. banks have enough capital to keep lending, but a pile of bad debts is fostering doubts about their health and slowing a recovery.
"If you add up all the common and preferred (stock) and debt, he's probably right that there's enough capital, but if you look at just the common equity portion it looks awfully thin," said Cannon.
The results of the government's tests, including a capital recovery plan for the banks that need more capital under stressed conditions, will be publicly disclosed May 4, a regulatory official said last week.
The KBW Banks index climbed 3.71 percent on Thursday but it is down 24 percent since the start of the year.
Slideshow: The 15 Biggest Holders of US Government Debt
Copyright 2009 Reuters. Click for restrictions.
URL: http://www.cnbc.com/id/30381341/
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