Tuesday, October 21, 2008

GEHL Company = Done Deal

I cashed out of Gehl Company (Ticker: GEHL) today at $29.98, which equates to a 3.27% return over a four day period. The company announced their tender offer results this morning with the majority of the shareholders tendering their shares for the buyout price of $30 in cash. This is as close as you get to making free money. There was no reason for the spread to be so wide with the deal in the bag. The little guys definitely have the edge right now in the arb game. As I have said before, many of the arb funds are out of biz leading to a lot of inefficient pricings. Anyways, I picked up some more Foundry Networks (Ticker: FDRY) today at ~ $17.47 per share. The shareholder vote is later this week and looking at a possible close next week.

No, I haven’t stopped following biotech companies. Keep an eye on Genzyme (Ticker: GENZ); they’re meeting with the FDA today in hopes of receiving approval to manufacture Myozyme using a 2000L bioreactor. Also the company reports Q3 earnings tomorrow. This one will definitely move one way or another. My bet is up! Yes, I do have a position in Genzyme.


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