March 25, 2008 by Joe Ponzio

I jumped in CCU last week and got out on Thursday (with a 6.5% gain) because I didn’t like the bickering and I didn’t want to get slammed over the long weekend. When the companies and/or banks fight, investors usually lose. Considering that there are enough workouts out there, I’m…

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February 26, 2008 by Joe Ponzio

I don’t want to focus this blog solely on workout situations; still, I think a majority of visitors never even dreamed of finding workouts until we walked through the various steps, the timeline, and the potential profits and risks. So, let’s add another chapter to the workouts/arbitrage discussion. Question: Should…

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February 15, 2008 by Joe Ponzio

There had been a considerable amount of discussion about the acquisition of Penn National Gaming, both in these comments and in a few other comments around the site. As the deal stands right now, Wall Street appears to be leaving $18 a share – or 38% – on the table…

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February 11, 2008 by Joe Ponzio

I just finished going on a comment-spree and I thought I should update you on a few other things as well. First, I sold my RTSX today. When engaging in workouts (as with any other investment), I am looking for both safety of principal and a satisfactory return (thanks, Ben…

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January 25, 2008 by Joe Ponzio

There have been a lot of great questions regarding workouts over the past week of the Workouts Work Out In Down Markets series (beginning here). Some visitors jumped into the comments and posted free resources to track upcoming mergers, acquisitions, and going private transactions. We all have that looming question…

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January 21, 2008 by Joe Ponzio

In Part 1, we looked at the various steps involved in a merger, acquisition, or going private transaction. As the transaction progresses along those steps, the spread between the market price and the closing price tends to close as the transaction becomes more finalized and less risky. In Part 2,…

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January 18, 2008 by Joe Ponzio

So, you’re sold on using arbitrage to enhance your portfolio. In fact, you’ve always known that arbitrage can offer virtually risk-free profits; still, it can be somewhat scary to jump in with both feet. Rather than getting into the theoretical aspects of arbitrage, let’s take a look at some real…

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January 16, 2008 by Joe Ponzio

If you’ve read Mohnish Pabrai’s The Dhandho Investor, you”ll likely recall a chapter entitled “Use Arbitrage!” If you”ve been following F Wall Street for a while, you”ll remember (and possibly have made money on) Use Arbitrage! The Tribune Company Example. Why do we say you should use arbitrage? In fact,…

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December 20, 2007 by Joe Ponzio

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…

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December 12, 2007 by Joe Ponzio

Last month I discussed selling options against positions when the markets are high and everyone is happy. The markets can do anything on a minute by minute basis; still, they tend to stay within certain ranges from month to month – even if those ranges are hard to predict. As…

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