Sold Hardinge

It’s time to tone down the risk just a tad with my risk arb plays. Today, I sold Hardinge, Inc (Ticker: HDNG) at $8.20 generating a 1.36% gain or 13.78% annualized return. The company is trying to fight off a hostile offer from Industrias Romi, a Brazilian tool maker, for $8.00 per share. The company isn’t expected to return to profitability anytime soon so it’s hard to see a significantly higher bid. I’m not happy with the return because I incurred too much risk to generate this return. This was a thinly traded stock and was very hard to sell at decent price. There were very few bidders on most days, but I noticed some bids today and decided to pull the trigger.