m22au's journal

Discussion in 'Journals' started by m22au, Aug 25, 2003.

  1. m22au

    m22au

    Sprint - Softbank deal details:

    http://www.elitetrader.com/vb/showthread.php?s=&postid=3652185#post3652185

    I am intrigued by the analysis here, regarding a quasi-merger arbitrage opportunity:
    http://seekingalpha.com/article/926991-sprint-s-unreasonable-post-deal-valuation

    Obviously with any merger arbitrage, there is the chance the deal is not finalized.

    That risk can be partially hedged using options.

    The basis thesis is contained in the first paragraph of the above article:

    "Softbank will tender for 55% of Sprint's outstanding shares at $7.30/share and will also buy newly issued shares of Sprint at $5.25/share. This deal implies a weighted average cost of $6.20/share for Softbank"

    From the Sprint Nextel announcement,
    "The companies expect the closing of the merger transaction to occur in mid-2013. "

    Maybe something I will keep on the radar, and I might consider buying some S early next year, especially if the share price gets a bit closer to the $5.25 level.
     
    #291     Oct 25, 2012
  2. m22au

    m22au

    24 October

    NAV sells 10.666 million shares

    http://finance.yahoo.com/news/navistar-announces-pricing-public-offering-000200619.html

    LISLE, Ill., Oct. 24, 2012 /PRNewswire/ -- Navistar International Corporation (NAV) today announced the pricing of a public offering of 10,666,666 shares of common stock at a price of $18.75 per share. Closing of the offering is expected to occur on October 30, 2012, subject to customary closing conditions. In addition, the company will grant the underwriters a 30-day option to purchase up to 1,600,000 shares of common stock.

    http://www.sec.gov/Archives/edgar/data/808450/000080845012000041/nav10qq37312012.htm

    As of August 31, 2012, the number of shares outstanding of the registrant’s common stock was 68,588,952, net of treasury shares.
     
    #292     Oct 25, 2012
  3. m22au

    m22au

    Alternative view (ie, Sprint a bad investment) put forward here:

    seekingalpha.com/article/950031-did-you-escape-sprint-in-time
     
    #293     Oct 25, 2012
  4. m22au

    m22au

    STSI 10-Q
    as at 30 September 2012
    http://www.sec.gov/Archives/edgar/data/776008/000114420412060932/v326107_10q.htm

    "The Company expects to have sufficient funding to sustain operations into the first quarter 2013. Depending upon sales levels, market conditions and the price of its common stock, it may be necessary for the Company to seek additional funds. There can be no assurance that the Company will be successful in obtaining such funding at commercially reasonable terms."

    See also:

    http://www.thestreet.com/story/1176...-admits-legal-defeat-warns-short-on-cash.html

    http://seekingalpha.com/currents/post/658131
    http://seekingalpha.com/currents/post/658161

    Press release:
    http://seekingalpha.com/news-articl...ical-trial-relating-to-anatabloc-facial-creme

    ****

    Short STSI calls.
     
    #294     Nov 12, 2012
  5. m22au

    m22au

    #295     Nov 19, 2012
  6. m22au

    m22au

    #296     Nov 20, 2012
  7. Daal

    Daal

    #297     Nov 22, 2012
  8. m22au

    m22au

    Thanks for that Daal. I believe the price target is actually 1 BRL, or approx 0.48 USD per ADR:

    http://www.reuters.com/article/2012/11/21/eletrobras-shares-idUSL1E8ML76520121121

    "Because of lower revenue, Eletrobras shares could fall another 90 percent to 1 real, the Barclays analysts' price target for the next 12 months. Their previous target was for the stock to rise to 29 reais."

    via Google translate, the Valor.com article says:

    "Barclays said the company may resort to an equity offering to raise about 8 billion (BRL) to 10 billion (BRL) in 2013, resulting in a 36% dilution in earnings per share of the company. "

    ****

    Current market cap according to Bloomberg is 9.42 billion BRL.

    http://www.bloomberg.com/quote/ELET3:BZ
    1.087 billion ordinary shares * 6.75 BRL = 7.337 billion BRL

    http://www.bloomberg.com/quote/ELET6:BZ
    265.44 million preference shares * 7.84 BRL = 2.081 billion BRL
     
    #298     Nov 22, 2012
  9. m22au

    m22au

    #299     Nov 22, 2012
  10. m22au

    m22au

    According to Wikipedia,
    http://en.wikipedia.org/wiki/Bovespa#Hours

    The Bovespa exchange has a pre-market session from 09:45am to 10:00am, a normal trading session from 10:00am to 5:00pm and a post-market session from 5:30pm to 7:00pm weekdays and holidays declared by the Exchange in advance.

    So that is

    6.45am to 7am (New York) pre-market
    7am to 2pm (New York) regular hours
    2.30pm to 4pm (New York) after hours
     
    #300     Nov 23, 2012