- Stocks (http://www.elitetrader.com/vb/forumdisplay.php?forumid=51)
-- Liz (http://www.elitetrader.com/vb/showthread.php?threadid=239882)
Bought some in the afterhours. I expect Liz to open at $15 on monday. The after hours spread is very small (only 5 cents) and currently near the closing price, so it seems to be a good after hours buy.
Just going off rumours or do you have something concrete?
When I have something concrete, the price will no longer be $13.40, it will be $20.
Everyone on wall st knows the saying "Buy on rumor, sell on news"
Quote from peilthetraveler:
Everyone on wall st knows the saying "Buy on rumor, sell on news" [/B]
Quote from PlinytheTrader:
Unless you are buying from someone who started the rumor and helping that person unload their shares at a high premium on the last day of the quarter? I don't have any inside information but it does seem fishy that this story comes out months after the supposed buyout talks and on the last day of trading for the quarter. I hope for your sake that I am wrong and your trade works out for you, but it does make a good setup. It could go like this: Some hedge fund has a large position in LIZ and gets word of the company talking with private equity firms. The fund then gets angry when LIZ turns down the offers above $20 a share and decides to leak the story to the WSJ on the last day of the quarter. The rumored $20+ offer price from multiple firms and the large short interest in the stock scrambling to cover their position help drive up the volume and the hedge fund can unload at a nice 30% premium to close out the quarter, not bad considering they know the buyout was turned down months ago. LIZ already came out and denied the report and said they were focused on their core strategy going forward, but i obviously wouldn't trust them either. Best of luck on the trade though, I will be curious to see what eventually happens.
Meh...Looks like I was wrong about this one...gave it a few hours to come back but it didnt, so I took a .50 per share loss. Luckily I only went in small with 500 shares.
Of course now that I'm out, murphys law should kick in and it will go to 15 by close.
Better to take small loss and wait and see how it reacts. Can always get back in later. Looks dead right now with little volume.
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