Wednesday, February 13, 2013

Nexen = Done Deal

I’m sure you’ve heard by now that CFIUS has approved CNOOC’s (Ticker: CEO) acquisition of Nexen, Inc (Ticker: NXY). To say the least, this was one wild ride. I had a decent position prior to the Canadian approval and went All In after Nexen / CNOOC received the Canadian approval. I was surprised of the relatively wide spread, while the company was waiting for the CFIUS approval. CNOOC has basically stated that they would do just about anything to win CFIUS approval and close this acquisition. This was an excellent risk / reward opportunity. I’m pleased with the outcome although this dragged on a bit longer than I anticipated. My total net gain was 4.23% (annualized gain of 15.48%) assuming a close on 03/01/13. I employed maximum leverage on this deal so my annualized gain is actually much higher (just too lazy to do the math right now). I also had good gains from Nexen last year in which I traded in and out of the position. I’m going to take it easy a bit and start looking for some new good risk / reward opportunities.


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