---Better use those capex dollars buying distressed assets from other pipeline operators.---
So who are these 'other operators' you refer to? I figure TRP will do the same now that USA axed KXL.
Who said anything about CREE being sold? I stated that perhaps CREE and AAPL could form a JV to acquire the Philips unit.
Arbs are buying BXLT and selling SHPG to capture the deal discount currently priced into BXLT.
BXLT = 0.1482 SHPG + 18. Plug in the current SHPG stock price and you get the current fair value of BXLT Right now, SHPG=181.20 and BXLT=41.50., while the deal values BXLT at 0.1482*181.20+18=44.85. To capture the discount, arbs are seliing SHPG and buying BXLT. This will continue on until the deal closes and the discount goes to zero. The arbs will unwind the play at close by selling BXLT and buying back SHPG.
@DEFINITION of 'Merger Arbitrage' A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless profit. A merger arbitrageur looks at the risk that the merger deal will not close on time, or at all. Because of this slight uncertainty, the target company's stock will typically sell at a discount to the price that the combined company will have when the merger is closed. This discrepancy is the arbitrageur's profit.
GE, HON, UTX, or even AA or BRKA too (Buffet bought PCP). I don't get it. HXL continues to deliver steady growth and competitors are getting taken out left and right. It's surely just a matter of time... but how long? I don;t get it.
I guess USA does not want led lighting technology to fall into the wrong hands haha.
@Philips Electronics (NYSE: PHM) — Philips saw a $3.3 billion sale of its lighting business fail due to national security objections by the United States. Philips did not disclose exactly what those objections were.
---My 2016 prediction. Brent 20's, ruble 80's, OGZPY $2's. I'll load up more heavily when this is in the $2's---
well that didn't take long. now what?
Rambling thoughts with no obvious point. Try again.
Before the Dell offer, there was talk of EMC buying up the part of VMW it did not already own, but it was apparently deemed to expensive. With VMW market cap now down by ~15B, EMC would be better off pulling out of the Dell deal, paying the couple of B$ breakup fee, and buying up that missing chunk of VMW on the cheap.
EMC closed today at 23.98, less than the 24.05 cash portion of the Dell offer. The VMW tracking stock stub is currently valued at a big fat zero.
The trading gods have spoken and they like CREE. For how long, nobody knows. pumpus maximus.
@SAN FRANCISCO — With EMC shares spending most of Wednesday below the cash price of $24.05 that Michael Dell offered for them last fall, the stock price is raising more doubts about a deal that was already looking shaky. The first thing to note is that the tracking-stock portion of the deal — pegged at $9.10 a share last fall by the two companies — is now valued at zero dollars a share, or essentially worthless, by money managers and brokers who buy and sell stocks for a living. Second, while the deal’s value was touted at $33.15 a share, or $67 billion, when it was announced Oct. 12, EMC’s market cap is now $46 billion, or nearly a third less. If EMC shares (EMC) can’t hold support at $24 between now and the company’s quarterly earnings call next Wednesday, Jan. 27, at least some market participants are starting to doubt this deal gets done even at the stated cash price.
True, but oil prices are a lot lower now than then. The general market trend seems to be tracking with oil sector news now.