Sold Shutter Fly and TRW Automotive
I made some adjustments to my special situations / arb plays
today. I sold off my position in Shutter Fly (Ticker: SFLY) generating a loss of 15.20% and
TRW Automotive (Ticker: TRW) generating a loss of 2.55%. I certainly did not expect the news
from Shutter Fly in which the private equity firm Silver Lake pulled its bid
for the company at the last minute. It’s not easy to sell for a loss, but
sometimes it’s best to step away and re-evaluate the situation. I also sold TRW
Automotive because the risk reward at this point was not ideal as there are
better opportunities out there. What better opportunities? I started to build a
position in Bally Technologies (Ticker: BYI) at an average price of $79.80 (potential
annualized return of 19.73% assuming a closing by December 31st) as
the company anticipates the completion of this deal by year end at a takeout
price of $83.30.
posted by Money Turtle @ 10:55 AM
8 comments
8 Comments:
time to load up the truck on ballys and TRW (although I think ballys closes in 2015)
Actually, I just saw the last press release where they said they expect to close the deal by year-end
Unreal value here
You're definitely seeing forced liquidation in many of the merger arb plays. I'm looking to add to BYI.
What do you think of Perelman's involvement - people think it could make the price to be lowered?
Price change seems unlikely at this point, barring some company-specific issue
Banks underpriced the bridge debt, so can't sell it, but that's their problem, not BYIs
I don't see a re-cut in deal price. Like the previous poster, the banks are going to have to hang on to the debt for now. The banks will unload once the junk market stabilizes. For now, they're stuck with it.
Hi MT,
What is your opinion of Exceed Company Ltd. (EDS)? They are supposed to be taken over at $1.78. Current price is $1.58.
It looks like they hope to be completed by year end.
I took a quick look at EDS. They're having problems raising the cash. Too risky...
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