Talk about bad timing! I should have read my own post about revisiting the $15 area. One would have expected a bounce after dropping $1.32 in one day after already falling well over $3. Playing the patience game now.
No absolute statements but it appears to me that we are very oversold and a rebound looks very likely in the near term. A couple of indicators... very low RSI and the stock price today exceeded the lower Bollinger band. Generally, those two things are very bullish. I bought 2000 shares at $18.94 and I expect to make at least something significant. So, we'll see.
It is interesting because it went up $1.08 today on average volume. We'll see if there is any follow through tomorrow. I don't think it's gained 2 days in a row since the drop from 23.
I didn't expect the selloff this morning as I thought the report was pretty decent. I still have 2900 shares at a break even of $17.20. I think they will finally show a profit on the next report. 2014 should be a good year, so I will probably hold for a little while.
I sold my remaining 2900 shares today for $18.97. Including the 2100 shares I sold a few days ago for $17.18, my total profit is $5200. There may be more upside but I couldn't resist taking that profit. It sure was a wild ride though!
Don't be so quick to think Tradester a fool. If there is a major market sell off that may happen in March, MEG may very well go down to $12 or $13. A few up days doesn't make a trend. I happen to agree with Tradester so don't get too euphoric! It's all an educated guess anyway and I can see the head and shoulders scenario very possibly happen. If it goes to $12 or $13, I will be loading up again.
I remember $72 full well. I believe that occurred in the spring of 2004. I worked for MEG from 1973 and retired in 2009. btw... Mario Gabelli owned many shares from $72 all the way down to just over $1. Therefore, I have NO respect for his opinion. I believe this stock could go down to $12 or $13 but I may buy back in around $15 looking for a bounce. This is an election year so, there should be an upswing in the price at some point because of political revenue. Question is, when and for how long.
If I'm figuring this right, LIN shareholders will receive $27.82 in cash or 1.5762 MEG shares valued at $17.65 per share. So, why would people this morning pay as high as $19.69 per share when it's worth $17.65?
Acquisition of LIN Media LLC by Media General, Inc. May Not Be in LIN Media Shareholders' Best Interests
Robbins Arroyo LLP 6 hours ago
SAN DIEGO and PROVIDENCE, R.I., March 21, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the proposed acquisition of LIN Media LLC (LIN) by Media General, Inc. (MEG). On March 21, 2014, the companies announced the signing of a definitive merger agreement pursuant to which LIN Media shareholders will receive, $27.82 in cash or 1.5762 shares of the new holding company for each share of LIN Media stock. Based on Media General's closing price of $17.34 on March 20, 2014, LIN Media shareholders will receive $27.33 in stock if that consideration type is chosen.
Robbins Arroyo LLP.
Is the Proposed Merger Best for LIN Media and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at LIN Media is undertaking a fair process to obtain maximum value and adequately compensate LIN Media shareholders.
As an initial matter, the $27.82 merger consideration represents a premium to shareholders of 29.5% based on LIN Media's closing price on March 20, 2014. This one day premium is significantly below the median one day premium of over 90.48% for comparable transactions in the last three years. Further, prior to the announcement of the merger, an analyst at Wedbush Securities, Inc. set a target price of $32.00 on February 7, 2014. Moreover, LIN Media has traded above the offer price as recently as January 9, 2014, reaching a high of $29.24.
In addition, on February 6, 2014, LIN Media released its financial results for the fourth quarter and full year 2013, reporting strong increases in net revenues, local revenues, and interactive revenues. Specifically, LIN Media reported annual revenues of $652.4 million, an 18% increase compared to 2012. In addition, the company reported a 35% increase in local revenues and an 85% increase in interactive revenues. LIN Media also reported that the company's core local and national time sales increased 9% in the fourth quarter and 24% for the full year, compared to 2012, while it expanded local news at 11 television stations.
In announcing the company's result, LIN Media's President, and Chief Executive Officer, Vincent L. Sadusky, stated, "Significant growth of our digital media business and pay TV subscriber fees helped offset comparisons to the prior year when we earned record political revenues. Excluding political revenues, we increased net revenues by 20% in the fourth quarter and 35% for the full year. Looking ahead, we are confident in the evolution of our company and our ability to capitalize on our recent acquisitions."
Given these facts, Robbins Arroyo LLP is examining the LIN Media board of directors' decision to sell the company to Media General now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
LIN Media shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. LIN Media shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
You see, I told you it is worth $17.65 but people continue to pay more and then it seeks it proper current level. I will never understand why people are willing to pay close to $19.00 per share until the merger is finalized. If it drops to $16.00, there is money to be made on a short term trade as it will go back to the $17.65 area.
Be careful about buying at the open without a limit order. The MEG market maker has a tendency to run up the price at the open with market orders. You can get hosed in a heartbeat and wonder what happened! I took the chance today but it is also the "catching a falling knife" scenario. Good luck with whatever you choose to do.