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Old Mar 30th, 2012, 04:54 PM   #1
peilthetraveler
 
 
Join Date: Jun 2005
Posts: 7,504
http://blogs.wsj.com/marketbeat/2012.../?mod=yahoo_hs


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.
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Old Mar 30th, 2012, 05:24 PM   #2
lwlee
 
 
Join Date: Dec 1999
Location: New York, NY, USA
Posts: 1,207
Just going off rumours or do you have something concrete?
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Old Mar 30th, 2012, 05:55 PM   #3
peilthetraveler
 
 
Join Date: Jun 2005
Posts: 7,504
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"
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Old Mar 30th, 2012, 07:06 PM   #4
PlinytheTrader
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Join Date: Nov 2011
Posts: 79
Quote:
Quote from peilthetraveler:


Everyone on wall st knows the saying "Buy on rumor, sell on news" [/B]

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.
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Old Mar 30th, 2012, 07:58 PM   #5
peilthetraveler
 
 
Join Date: Jun 2005
Posts: 7,504
Quote:
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.
You could be right. I mean that makes sense, but wouldnt that mean the hedge funds will probably end up buying the stock back if they want to white wash and not pay tax on those profits? Unless they were already thinking of permanently dumping and there was no more upside, but LIZ is on an uptrend. Cant understand why they would sell and not buy back when the stock is still going up.
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Old Apr 2nd, 2012, 12:17 PM   #6
peilthetraveler
 
 
Join Date: Jun 2005
Posts: 7,504
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.
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