MER excellent short opportunity?

Discussion in 'Stocks' started by The Kin, Sep 15, 2008.

  1. This reeks of a fake bid sponsored by the Fed to support the market. I doubt MER will last 3 months, the time needed to finalize the merger. Thoughts?
  2. The Fed wouldn't do that. GS would. :cool:
  3. zdreg


    bac could back out.
  4. BAC stock is getting slaughtered and MER countinues to trade down.
  5. Remember when BAC took full ownership of CFC? Kinda the same scenario and results. People faded that gap, too. These govt. induced marriages just aren't as sexy as free market ones. Don't be fooled into thinking MER is a turnaround story. Look at CFC.
  6. MER closed completely flat today. People were saying MER is going to $30, uh huh...
  7. agreed kin, as soon as MER opened at like 23 and started heading down i was tempted to short.

    either you are right and its a bogus bid, or people are just betting on it being rejected by boa or mer shareholders.

    but i dont trade stocks only futures and fx sadly ;)
  8. did you take that trade? it was an excellent call. the spread on the deal is like around 35% discount now.
  9. It's a stock swap deal, don't forget that. The $29/share was an inferred price based on BAC's closing friday print. Obviously they expected it to get whacked down. At this rate, BAC may get MER at single digits.
  10. I was short MER on Friday and closed my position with a minor loss. I consider myself very lucky.
    #10     Sep 15, 2008