Author Topic: LAACZ - LA Athletic Co  (Read 16392 times)

Gregmal

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Re: LAACZ - LA Athletic Co
« Reply #60 on: November 20, 2019, 12:18:25 PM »
I have/had a small tracking position in this until today. Finally got tired of the tax reporting and a few other issues which are besides the point. Was looking to sell and apparently there were FINRA rule changes regarding certain OTC positions, I was told these occurred back in May, which require the firm to jump through hoops when transacting in certain securities. Which of course just means the unit holder has to jump through hoops. I was further surprised to find out that Fidelity WILL NOT accept this security via an account transfer. I ended up having to chase down my paper confirmation statements from years ago... and finally after significant inconvenience, was able to sell this. Just a word of caution. Not sure it will apply to everyone and not sure you'll have any issues if you can prove(onus on YOU) that the securities where bought and sold with the same firm. But buyer beware.


maude

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Re: LAACZ - LA Athletic Co
« Reply #61 on: November 20, 2019, 01:31:11 PM »
This year for Thanksgiving, I am going to say a special thanks to the regulators and lawmakers who keep all of us in the investment community safe from ourselves. Without them, we would all be lost.

Spekulatius

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Re: LAACZ - LA Athletic Co
« Reply #62 on: November 20, 2019, 03:40:14 PM »
I have/had a small tracking position in this until today. Finally got tired of the tax reporting and a few other issues which are besides the point. Was looking to sell and apparently there were FINRA rule changes regarding certain OTC positions, I was told these occurred back in May, which require the firm to jump through hoops when transacting in certain securities. Which of course just means the unit holder has to jump through hoops. I was further surprised to find out that Fidelity WILL NOT accept this security via an account transfer. I ended up having to chase down my paper confirmation statements from years ago... and finally after significant inconvenience, was able to sell this. Just a word of caution. Not sure it will apply to everyone and not sure you'll have any issues if you can prove(onus on YOU) that the securities where bought and sold with the same firm. But buyer beware.

I own this also in. Fidelity account. I never had issues selling something, but sometimes have issues buying OTC stocks. Fidelity had me sign an online form, before I could buy in the pink sheets. Fidelity also doesn’t let you buy dark stocks at this point (they changed their rules a couple of years back), but you can sell the,. LAACZ is not a dark stock, so it can be bought in Fidelity accounts without issues (I bought some a couple of month ago and have open orders currently).

The new SEC rule regarding non filets will create a big problem for money managers dabbling into those, because without visible bids, there will be no objective value for them any more. I am not sure how one would even trade these outside of private negotiated transactions. So there could well be a lot of forced selling when this rule goes into effect.
Life is too short for cheap beer and wine.

Gregmal

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Re: LAACZ - LA Athletic Co
« Reply #63 on: November 20, 2019, 04:01:55 PM »
The Fidelity issue was solely referenced in relation to transferring in LAACZ shares. They will not accept it I was told. Your ACAT will get NIGO'd and bounce. You can trade it freely once there, AFTER signing the form you mentioned. They also told me this is something they will now classify as an "alternative investment". For those of you with finance backgrounds, that is a very dirty area and means a lot of paperwork/documentation/CYA for the firm typically; which always seems to pass its way on to the customer. My assumption is that they won't let you transfer it in, but will let you trade it there, because its easier for compliance to document.

The new SEC rule is just icing on the cake for this kinda stuff. And it's a shame. I have no real issue with LAACZ as an investment, but the landscape is becoming ridiculous, and especially when managing OPM it's getting near impossible. One of the realities of managing money whether your own or others, is that sometimes you change brokers or use multiple ones. Regulatory requirements for firms with regard to OTC positions has gotten quite insane. Now imagine transferring around and then trying to sell and being asked to provide proof of open market acquisition from something you bought 5+ years ago? And then being told if you cant provide it you cant sell? And then your other brokers won't accept an ACAT with an OTC security? Now imagine this scenario but with someone else's money? Having to ask an investor to come up with that and then deal with it as an advisor? Just too much hassle to justify dealing with...

Spekulatius

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Re: LAACZ - LA Athletic Co
« Reply #64 on: November 20, 2019, 04:20:29 PM »
 I understand the issue when you manage OPM, but I just manage my own. The less competition there is for these securities, the better for a private investor who doesn’t care  8).
Life is too short for cheap beer and wine.

Spekulatius

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Re: LAACZ - LA Athletic Co
« Reply #65 on: November 24, 2019, 08:29:21 AM »
One thing to consider when looking to invest in LAACZ right now is that the self storage markets in several areas seems to be weakening. The recent CC especially from PSA and Cubesmart with weak SS and occupation Trends gave an explanation. There has been a lot of supply coming to the market, and there is more coming (likely peaking in 2020), so they put a clear damper on pricing and the stocks of PSA and CUBE have not been immune to this. I think this will limit the near term appreciation potential of LAACZ as well. I am not terribly concerned, because LAACZ core markets in southern CA are supply constraint, but Houston not so much.

I would be quite concerned if holding UHAL, because they are betting the company on self storage and adding a lot of debt with 2-3 more years of heavy investing ahead, before they have build out all their acquired properties.
Life is too short for cheap beer and wine.