At $33.67, there is almost no upside and big potential downside if the deal falls apart last second. Just wanted to let you know that I sold TRB. Remember Buffett’s rule: Don’t lose money. There is very little risk left, but the few pennies on the upside do not justify the many dollars on the downside.
Just thought you’d like to know my thoughts.
Filed under: Workouts, Arbitrage, & Hedges
Related Stocks: TRB
Thank You Joe. Good learning experience for real deal. It worked out at final. But, in terms of chance what probability and how you were assigning for the deal to go through when you published your last post? If you could explain your raitonale , it would be helpful to go through.
Thanks,
Happy Holdiays,
CD.
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Surprisingly, I sold TRB at $34. I wonder who was dumb enough to buy my limit order at $34… and how is that person going to make any money out of it.
The reason for selling – my broker would charge me $20 for mandatory tendering of shares. Selling it in the open market costs just $9.99. Just trying to lower my transaction costs.
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Hi Joe,
Love the site and is very helpful and learning tons. Just wondering with CD on how you find these abritrage deals and what info lend you to beloeve they will happen. I have found the most current info on steetinsider.com.
How do you know or find supporting research that a M&A deal will go through? The only usual headline I find before the stock changes is company XYZ hires a an analyst to help “discover” how to increase shareholder value. How to you research more into a deal? What do you look for.
Thanx again for the great site!!!!
mark
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Agree. I sold my position and am now researching and waiting for new opportunities.
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