Friday, October 31, 2008

Back At It Again

I recently took a minor set back in Landry’s (Ticker: LNY) and Foundry Networks (Ticker: FDRY). When things like this happen, you just need to regroup and get back into the biz of trying to make some $$$. Today, I sold some Landry’s @ $12.50, which equates to a loss of 32.61%. I hate losses, but sometimes they are good since you learn what not to do next time around. Fortunately, I piled up a good amount of short term capital gains this year so this will off set some of that.

So far this year, defense related takeovers have been very good to me. I decided to give SI International (Ticker: SINT) a try today. I picked up a few shares at $28.68 with a buyout price of $32 by the English firm Serco Group PLC. The company is currently waiting word from the Committee on Foreign Investment in the United States (CFIUS). Today is the expiration day so we’ll know by Monday if the review will be extended. If it receives the ok, the deal should close in two weeks. A potential 11.57% return in two weeks, that’s a pretty good risk / reward ratio.

I’ll give a plug to The Deal.Com. This is where I get many of my arb ideas. They’ve been pretty much on the money.


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