Some Inhibitex, Inc.

I sold half my position in Pharmasset, Inc. (Ticker: VRUS) yesterday generating a net gain of 5.5% over a 35 day period (~56% annualized return). I reinvested the proceeds into Inhibitex, Inc. (Ticker: INHX) at ~ $23.76. Inhibitex announced over the weekend that it has agreed to be acquired by Bristol-Myers Squibb (Ticker: BMY) for $26 in cash via a tender offer. I’m looking at this deal closing in ~ 60 days. The spread is attractive (currently ~ 9% with a potential annualized return of ~ 55%) because people still remember what happened to Pharmasset when they stopped a phase two trial for hepatitis C due to liver toxicity. I like this risk return opportunity…

On a side note, I picked up an odd lot (99 shares) of SeaSpan Corporation (Ticker: SSW) at $13.51 and tendered the shares yesterday. There is a tender offer for $15 per share with holders of odd lots taking priority. No gain is too small…Thanks to T. Bhat at http://valueinvesting.proboards.com (click: here) for giving me the heads up on this deal.