Bid for Giant Interactive has potential to be increased to $14/sh, says Vertical Group
Thursday, December 19, 2013 02:15:45 PM (GMT)
Firm believes that the non-binding proposal from the chairman, Yuzhu Shi, has the potential to be increased to $14/sh and feel the group is motivated to complete the "go-private" transaction
Rating is buy; target is $14
just shorted 10 july 10 putsies for 25 cents.
if the GA mgmt does succeed in stealing the company at $11.75, at least I make another 25 cents. If they don't, and the stock goes down, I add to my position, and have a nicer back door play in the Alibaba IPO. all this at a good fundamental metric in GA, with rising growth in both top and bottom lines. If it's worth 11.75 to them, it surely is worth 9.75 to me.
Comments would be welcome
Like the play. If you're feeling frisky, take a look at the April 12.5 call. It's going for 10-15 cents. If you take some that put premium you collected and put it there, you could get a nice return on a higher counter offer from the company.
Forgive my ignorance, I am not well versed in options trading, but does that mean that you sold July $10 put options for $0.25? And if so, is there a requirement that you hold shares in your account to sell an option on those shares?