Thursday, October 02, 2008

More Photon Dynamics

Like poker, it’s all about risk and reward. There are no guarantees, but you just have to go all in when the odds are heavily in your favor. That’s what I did with Photon Dynamics (Ticker: PHTN). There was still a spread of over 1% today and I took advantage of that by purchasing more shares at $15.40. This is expected to close today for $15.60 in cash per share. Many of the arb funds are out of biz and this has created a lot of inefficiencies in the small cap arb space. These opportunities don’t happen often so take it while you can.

2 Comments:

At October 02, 2008, Anonymous Young Empire said...

Interesting investment opportunity, arbitrage at its finest. Where do you source these opportunities?

 
At October 03, 2008, Blogger Money Turtle said...

It’s a lot of detective work, but the best stuff is found in the SEC web site. There I check out the company filings and see which arb hedge funds are playing the deals. Some of it is also just pure gut feeling… There are also some M&A focused sites such as thedeal.com and maresearch.com.

 

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