Saturday, February 07, 2009

Puget Energy Holding = Done Deal

Well, it's official now. The Puget Energy Holding (Ticker: PSD) deal has finally closed. This was my largest arb play to date generating a return of 6.57%. I maxed out my margin in this arb play and fortunately it paid off. In order to maximize your return in arb plays, you generally have to use margin. If you do use margin, you really need a strong conviction that the deal is solid. The only arb play I have right now is Genentech (Ticker: DNA). I purchased this company years ago and it has now morphed into an arb play. I'll probably take a break from the arb stuff and focus on growth investing once again.

I'm getting very bullish on the market now. I got rid of my covered call positions in Apple (Ticker: AAPL) and going to let it ride. I also like the technicals in Goldman Sachs (Ticker: GS). When the market goes up on bad news, that's a very good sign.


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