IIC's Winners Watchlists

[IIC]

Morning Movers: SBUX ATYT BP SGP MRK ELN OVTI AZN NTRI TIE MOT CRME GOOG DELL BIDU AAPL SLAB NCOG PETS BTUI GRMN NTGR NG BRLI

[New-born baby]

Thanks, Doug

Thanks again Doug for all of your great work!

[IIC]

Thanks again Doug for all of your great work!

Sure...no problem...Doug

[IIC]

Some Upgrades: CSR, PDLI, CHRT, PRSP, LYO, DELL, TIF

[IIC]

MACD Crossovers...Before They Crossover:

ICOS,ELK,BGP,BRLI,UGI,VMSI

Little Charts: http://trimurl.com/6OS

Well...that was quick...they all crossed over already...IIC

[billyjoe]

Doug,
I want to ask you the same question I posed to Dr. Jack. AMD has announced they are buying ATYT for 20.46 in a combination of stock and cash. For most of today you could have purchased ATYT for 19.46. Would the point gain be worthwhile to you or would it tend to tie up funds too long that could be put to better use? Thanks

---------billyjoe

[IIC]

Doug,
I want to ask you the same question I posed to Dr. Jack. AMD has announced they are buying ATYT for 20.46 in a combination of stock and cash. For most of today you could have purchased ATYT for 19.46. Would the point gain be worthwhile to you or would it tend to tie up funds too long that could be put to better use? Thanks

---------billyjoe

Let me repeat what I said to J over on his thread earlier this month.."Things are not always as they seem" (Or something like that)...See his thread re: GFCI...buyout for 2.25 sh...Then why did it close at .19 today?

I really don't know about either deal...But if this deal is worth 20.47...why didn't the pros drive it up near there?...I don't know...and since I don't know I wouldn't buy it based on the headlines.

I believe there is much more to these deals than we read in News Briefs and PR's...I'd suggest digging in a little further before jumping in for a possible 5%.

Best, Doug(IIC)

[billyjoe]

Doug,
Exactly, these things never work out the way they seem. It would just be too easy. Just so my son gets a profit on his ATYT we'll be happy.
---------billyjoe

[ParkTwain]

Doug,
I want to ask you the same question I posed to Dr. Jack. AMD has announced they are buying ATYT for 20.46 in a combination of stock and cash. For most of today you could have purchased ATYT for 19.46. Would the point gain be worthwhile to you or would it tend to tie up funds too long that could be put to better use? Thanks

---------billyjoe

You're talking merger arbitrage (aka risk arbitrage).

http://en.wikipedia.org/wiki/Arbitrage

http://en.wikipedia.org/wiki/Risk_arbitrage

//
In the 1980s, risk arbitrage became common. In this form of speculation, one trades a security that is clearly undervalued or overvalued, when it is seen that the wrong valuation is about to be corrected by events. The standard example is the stock of a company, undervalued in the stock market, which is about to be the object of a takeover bid; the price of the takeover will more truly reflect the value of the company, giving a large profit to those who bought at the current price—if the merger goes through as predicted. Traditionally, arbitrage transactions in the securities markets involve high speed and low risk. At some moment a price difference exists, and the problem is to execute two or three balancing transactions while the difference persists (that is, before the other arbitrageurs act). When the transaction involves a delay of weeks or months, as above, it may entail considerable risk if borrowed money is used to magnify the reward through leverage.
//

//
In a cash merger, an acquirer proposes to purchase the shares of the target for a certain price in cash. Before the acquisition is completed, the stock of the target trades below the purchase price. An arbitrageur buys the stock of the target and makes a gain if the acquirer ultimately buys the stock.

In a stock for stock merger, the acquirer proposes to buy the target by exchanging its own stock for the stock of the target. An arbitrageur will then short sell the acquirer and buy the stock of the target. After the merger is completed, the target's stock will be converted into stock of the acquirer based on the exchange ratio determined by the merger agreement. The arbitrageur delivers the converted stock into her short position to complete the arbitrage.
//

[IIC]

Today's MoMo:

PRAN, NG, IDSA, APN, MIG, SIM, NGA, DTLK, BLSI, GRB, LVLT, CRAY, OMCL, EMCI, BVX, TTG, DUCK, IHR, AEPI, OMG, AVCI, AP, WST, NTRI, CVO, ILMN, BRR, CMRG, NPLA, ACY, CHIC, BRLI, DLLR, GETI, DCTH, TXUI

Little Charts:

http://trimurl.com/6PC

http://trimurl.com/6PF

PRAN
NG
IDSA
APN
MIG
SIM
NGA
DTLK
BLSI
GRB
LVLT
CRAY
OMCL
EMCI
BVX
TTG
DUCK
IHR
AEPI
OMG
AVCI
AP
WST
NTRI
CVO
ILMN
BRR
CMRG
NPLA
ACY
CHIC
BRLI
DLLR
GETI
DCTH
TXUI

[IIC]

Morning Movers: EBAY SNDK MCD BNI MO CRME TXN MRK XOM ALTR AAPL DADE DRRX AVCI NVDA ARMHY RYAN ZBRA AMLN SHPGY RADN MYOG TASR SIRI MDCO OVTI

Some Upgrades: BAB, EBAY, YRCW, LRY, OSCI, UNP, HTLD, AXP

[IIC]

Accidently heldover MRK yesterday...I'm out now...IIC

[IIC]

In MYOG lo 31's for dt

[IIC]

in RCII 25.90's

[IIC]

in RCII 25.90's

out RCII +.46