I bought this stock last year entry point 20.00. It has quite a run up in the last 2 months, how high can this stock go. Will the buy out limit the price. Is there a chance that the buyout might not go through?
The FH stock is in a sense pegged to Coventry. To figure out the real FH value multiply Cov. by .18 and add about $9.25. Right now that shows FH to be worth about $18.75. Don't look for it to go higher than that unless Cov. soars. On the other hand as the buy out gets closer if FH is well below the pegged price look for it to run up. As for the buy out not happening, something like a quarter of all these deals end up falling through although the longer it goes the less likely is this manifestation to occur. If you bought at $20 you should be able to get your money back.
you gotta figure in the tax implications also. Yea, if you own 100 shares not a big deal, but 1000 or more it does matter. The "block" traders will figure in the cap gains tax and allow for a downward bias in your calculations, which I agree with. I still think Coventry is a good buy, mostly because of the after effects of buying fhcc as structured.