Wednesday, December 19, 2007

Arb Play In Harrah's

As mentioned in my previous post, I've been playing around with Harrah's Entertainment (Ticker: HET). This company is in the process of being taken over for $90 per share in cash. So here are all of the trades I've made in Harrah's Entertainment:

11/26 Bought @ $87.03
11/28 Sold @ $87.76
11/29 Bought @ $87.90
12/06 Sold @ $88.14
12/13 Bought @ $87.08

I'm just going to hold onto the last batch of shares purchased and wait for the deal to close in early 2008 (probably sometime in January) and receive the $90 per share in cash.

My next arb play is Penn National Gaming (Ticker: PENN), which is trading around $59 and is being taken out for $67 per share in cash. This deal is expected to close in mid 2008.

Just a little warning... I'm not hedged with these merger plays so if the deal doesn't go through, I'm toasts!


Post a Comment

<< Home