Altera Buyout

Discussion in 'Stocks' started by xandman, May 26, 2015.

  1. Cippo

    Cippo

    Do you know about other takeover bid like this in Nasdaq? where I can park some money for 6-8 months?
     
    #21     Jul 5, 2015
  2. Butterball

    Butterball

    #22     Jul 5, 2015
    xandman likes this.
  3. Cippo

    Cippo

    thank you batterball, very useful
     
    #23     Jul 5, 2015
  4. xandman

    xandman

    #24     Jul 5, 2015
  5. Butterball

    Butterball

    In general, yes. Deals with buyers who are A+ rated big Fortune 500 companies generate smaller yields than some shady Private Equity company no one has ever heard of. When BRK bought out Lubrizol and Burlington Northern railway the annualized yields were on par with BRK's short term corporate debt -- around 1-2%.

    Sometimes deals are connected to shareholders electing certain payouts in cash, stock or a combination with an upper cap on the cash payout which is prorated depending on what percentage of holders choose this option. So its not always possible to generate a perfectly hedged long/short position in the seller/buyer underlying unless you have a model to predict shareholder election. Sometimes the websites I listed don't take this into account and that inflates the yield they list. As I cautioned: analyze each deal individually.

    Other times you have lawsuits trying to stop deals from taking place. Or even better a bidding war from several buyers which can be very profitable. One thing I caution of is dealing with buyout rumours. I only analyze deals with a actual written offer on the table.
     
    #25     Jul 6, 2015
    TraDaToR and xandman like this.
  6. Butterball

    Butterball

    Speaking of getting lucky, nice bump in PNK today as bid was raised. Lose some, win some.
     
    #26     Jul 7, 2015
  7. Butterball

    Butterball

    Interesting situation in some of the Chinese small caps. DATE and CMGE have offers pending but are getting crushed in the china crash. Interesting yields that get bigger by the day but a financial crash in china obviously increases risks of deal financing falling apart.
     
    #27     Jul 7, 2015
  8. hajimow

    hajimow

    Rumor is that INTC and ALTR deal might not go through.
     
    #28     Jul 8, 2015
  9. hajimow

    hajimow

    That rumor is getting stronger and you see ALTR has dropped below $50. If it goes stronger, it can easily drop below $40. Disagreement between top executives whether it is a good idea to take over ALTR.
     
    #29     Jul 9, 2015
  10. newwurldmn

    newwurldmn

    where did you read this hajimow?

    EDIT: Actually looks like it's anti-trust related. Not INTC getting cold feet.
     
    #30     Jul 9, 2015