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SPDR Gold Trust Message Board

  • sandspiderbm sandspiderbm Feb 8, 2012 11:32 AM Flag

    Aribtrage Opportunity in BULM gold stock (bought out today)

    Possible Arbitrage Opportunity in BULM
    --------------------

    BULM is trading at $1.09 / share when the offer was for .45 shares of EMXX and .11 cents cash. Assuming EMXX is trading at $2.50 per share which is LOWER than the current market price (around $2.55) that makes the compensation for BULM shares worth approximate $1.23 - a 10% premium to current prices.

    Throw in the fact that BULM management and friendly shareholders own 45% of the shares - they only need a small minority to push this transaction through. This looks like a pretty good 5-10% arbitrage opportunity to me.

    Anybody know of any fault in my logic?

    Your Friendly Neighborhood,
    Spider

    Disclosure: Owned BULM shares previous to today and bought at 1.04 and 1.12 today - and may buy more.

 
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