Friday, March 04, 2011

More Spec Portfolio News: EastBridge Investment Group Announces Stock Dividend of Alpha Lujo Stock

I'm a bit behind the ball on this one. It escaped my attention for a few days because I normally rely on Yahoo Finance to track my portfolios, but there's some confusion about this stock, EastBridge Investment Group, over there right now. Due to the last of their market makers moving to OTC Markets, Yahoo Finance is treating this as an "abandoned stock", relegating it to the pink sheets there. Not so, this is a misunderstanding created by a software glitch; EastBridge is still a full-reporting company.

This is another one I keep in my speculation portfolio, which is a collection of rolls of the dice that I like to make (the portfolio gets just 20% of my cash available for investing, not betting the farm here!).

EastBridge basically helps companies, most of them in Asia, get listed on U.S. exchanges, amongst other services. In exchange, EastBridge receives cash and stock compensation. They then turn around and spin off portions of their equity holdings to EastBridge shareholders. It's a stock that one can buy and eventually end up owning shares in a number of companies, by design.

The latest news is that one of these spin off events is on the horizon:

PHOENIX, AZ--(Marketwire - March 1, 2011) - EastBridge Investment Group (EBIG) (OTCBB: EBIG) (OTCQB: EBIG) today announced that it has scheduled to distribute 1,000,000 shares of its US stock ownership in Alpha Lujo, Inc. ("ALEV") to its shareholders for no consideration. All shareholders of EBIG stock on the closing date of March 31, 2011, will receive on a pro rata basis, their allocated shares of Alpha Lujo stock after this dividend registration is filed and approved by the SEC. The size of this dividend represents about 5% of Alpha Lujo, Inc.'s capital stock equity as of today.

Mr. William Tien, CEO of Alpha Lujo, commented, "We see a lot of opportunities in the electrical vehicles business in China, Australia and the USA. We are accelerating our pace to capture the opportunities in the electrical vehicles and advanced batteries businesses. We are in the process of completing the merger of the electrical vehicle entities and Alpha Lujo."
This is but one of several spin offs I'm now in line for as a holder of EBIG shares. Will any of these companies ever amount to anything, or will EastBridge for that matter? I have no idea. Like I said, this is in my spec portfolio. (In this case, it really doesn't matter to me because I recovered my initial capital from this position a long time ago. The last time it spiked around 400% over my cost basis I sold just enough shares to get my initial purchase amount back out - I'm playing with the house's money here). I'm not making a recommendation to buy or to not buy EBIG. Do your homework, make up your own mind about it.

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