Huge Arb Opp on BBI vs. BBI-B

Discussion in 'Stocks' started by DeltaSpread, Jan 6, 2010.

  1. Well actually the conversion merger of the B&A shares was approved yesterday per my original DD at the ratio of 1:1 and will be closing in a week or so.

    You can still squeeze out a couple pennies here on the arb, but some folks picked up a nice 25%-30%++ return.
     
    #11     Jun 25, 2010
  2. Yep 30% , I know 5 traders that retired for life off this.
     
    #12     Jun 25, 2010
  3. aint gonna happen, fraud
     
    #13     Jul 1, 2010
  4. #14     Jul 1, 2010
  5. BBI management obviously a pack of thieves and incompetents, milking every last dime from this dinosaur .
     
    #15     Jul 1, 2010
  6. yea the PR was bull, i had a feeling they were going to pull back and bring up some more bull and I was right about this.

    bbi is officially barbecued. hello BBIQ
     
    #16     Jul 5, 2010
  7. i dont really understand what you are saying here?

    so your saying if you picked up bbi-b shares and bbi shares that you'd gain 30% when they merged?
     
    #17     Jul 5, 2010
  8. can someone explain what happened?
     
    #18     Jul 5, 2010
  9. sumfuka

    sumfuka

    As plucky duck would say: blockbuster went down the ho~~~le~~ :p
     
    #19     Jul 6, 2010
  10. dctdave

    dctdave

    Spread. So long BBI-B and short BBI.

    When they would convert in a 1:1 ratio you would collect the discount.

    However due to the rejection of the conversion the spread is back to 8 cents or something.

    I did this spread a couple of times last months. However last month borrowing the stock was very difficult at my broker. So I wonder how many people really could profit.

    When BBI would get BBQ'd the 1 to 1 ratio applies again ;-)

    greetz. DCT
     
    #20     Jul 6, 2010