I just wanted to let everyone know that I've written a post on another potential merger arbitrage play. With the closing date expected to be Sept 17, those that are interested could start looking into it.
Continue reading...Wednesday, July 2, 2008
The merger between Aquila and Great Plains has finally been approved. The deal was first announced in February of 2007 and the deal is now expected to close on July 14. It was a long process but certainly worth the investment.
Continue reading...Tuesday, May 13, 2008
Back in March, I wrote an analysis of the Aquila (ILA) & Great Plains (GXP) workout. Since then, the spread has been steadily closing. When I wrote the first post, the spread was at 21%. Today, that gap has closed to around 7%. Had you or I invested around that time, we would already be sitting on a nice gain of ~10% with very low risk.
Continue reading...Wednesday, March 19, 2008
In continuation from the arbitrage post, here I will give an example of a current pending merger with a price spread of 21% annualised to 178%. With the economy in a recession and things not looking to brighten up anytime soon, studying and practicing anti-recession techniques may be one of the few things that saves you.
Continue reading...Sunday, March 16, 2008
I first came across the term while reading Dhando Investor. A really really basic definition is the idea of taking advantage of the price difference between an investment. e.g. if gold is selling for US$980 on the Australian market and being sold for $1010 in the US market, an arbitrageur would purchase gold from the Australian market and sell it immediately on the US market with close to zero risk. We will look at how it relates to stocks.
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Saturday, August 16, 2008
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