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  • get_imaginary get_imaginary May 11, 2011 2:44 PM Flag

    Why isn't this stock trading at tender offer

    I didn't try to finesse it beyond the timing. Just picked an ask price a little below top of the order book in the pre-market. I figured there would be at least some early margin calls pushing up price on low volume before the market opened.

    This was my first exposure to a tender offer so I read up on the subject the night before and decided that would be my strategy. I also figured that even if I was wrong, I still would have a 40% gain in a couple weeks -- more than adequate :-)


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    • A very intelligent move. I have a lot of money in the market and thought I was reasonably sophisticated but you have me beat by a mile. I did not hear about the tender offer immediately, would not have known how to check the premarket order book and would not have been able to execute at the top like you apparently did. The pps at its best was 22.60 and it wold have been great to execute at market at that price for all shares. I did not so I've defaulted to buying more, tendering all, hopeing they will buy 80% and that the share price will only reduce to $18 to 19. How did you get the early info on the tender and what thinks you of my current strategy. Always happy to give kudos for someone smarter than I. Thanks in advance for any suggestions or adivce.

      • 1 Reply to pdb3838
      • I've made plenty of moves I regretted as well as a few that worked out :-)

        As for knowing about the offer, it was a headline on yahoo. I maintain an html page that contains yearly and daily charts for all my holdings along with links to information on each of them. Most days, I check it at least once. Any sudden big change shows up easily and I use the links to find out more. If daily checking is a pain, you could sign up to get email alerts from google on search criteria of your choice. Also a lot of online brokerages will let you set email alert criteria such as a price change over a certain amount.

        My broker (firstrade) shows the top of the order book in pre-market and after hours as well as when the market is open. You can also find that information on the exchange's website. Here's the pre-market link for SPWRA:

        What I would do if I still held my shares is tender as many as possible now. I would wait to buy more until the offer expires. After it expires, I think there's a good chance price will drift down to somewhere around 15-17. I'm planning to repurchase my shares if that happens. If it doesn't happen, well I won't repurchase but will continue to watch SPWRx for a re-entry point because I think it's a great company with a solid future. This is just my opinion. And I'm not a sophisticated investor. I just enjoy it and enjoy learning about it. GL2U and thank you for the kind words.

21.24+0.86(+4.22%)Feb 12 4:00 PMEST