Monday, August 31, 2009

Another look back at Forsys Metals

On August 6, I wrote about my failed risk arb play in Forsys Metals (Ticker: FOSYF.PK). At that time, all indications were that the deal was back on track and was going to close in ~ 2 weeks. Now the Canadian officials have blocked the merger because they are concerned as to where the acquirer is obtaining the cash (possibly from North Korea). Forsys Metals has decided to nix the deal and is now demanding a breakup fee from the acquirer. So close to the finish line and it all falls apart. I’m glad that I was able to walk away from this deal early on with a small loss.

Now it’s the final countdown for Sun Microsystems (Ticker: JAVA)… 3 days until the decision from the European Regulators. 3... 2... 1... ???

Sunday, August 23, 2009

The Ascent of Money

During this weekend, I've been watching the PBS documentary: The Ascent of Money. I give it a big thumbs up... It gives a nice intro on how this financial crisis started to the evolution of money (click: here to watch). Enjoy...

Thursday, August 20, 2009

DOJ Approves Sun Microsystems + Oracle

Hot off the wires... The Department of Justice just approved Oracle's (Ticker: ORCL) acquisition of Sun Microsystems (Ticker: JAVA). Now, we'll just have to wait until September 3rd for the European Union decision. It's starting to look like an early September close...

Wednesday, August 19, 2009

Sun Microsystems... Closing Soon???

It looks like we’ll be closing soon on the Sun Microsystems (Ticker: JAVA) and Oracle (Ticker: ORCL) deal. Today, CNBC reported that the Department of Justice may give its blessing to the deal this week. The stock rose on the news closing at $9.28 (up $0.06 or 0.65%). If the DOJ gives the go ahead; the only obstacle remaining will be the decision from the European Competition, which is expected on September 3rd. I have a decent position in Sun Microsystems with an average price of $9.18. As they say, time will tell…

Friday, August 14, 2009

13F-HR Are Out For Paulson, Icahn and Whitworth

The 13F-HR filings for John Paulson, Carl Icahn and Ralph Whitworth have been posted on the sec website. Here’s a quick link to their holdings: John Paulson (click: here), Carl Icahn (click: here) and Ralph Whitworth (click: here). There are really no new surprises in their holdings. John Paulson did initiate a risk arb position in Sun Microsystems (Ticker: JAVA), which is nice to know. I consider him one of the best in the risk arb biz. I’m looking forward towards the closing of Sun Microsystems and Highland Partners (Ticker: HLND) next month. Geez... Did I just jinx myself!?

Wednesday, August 12, 2009

13F-HR Season

Time to keep an eye on the upcoming 13F-HR filings with the SEC. This is basically the quarterly report of their large holdings by institutional managers such as hedge funds. I like to keep an eye on John Paulson of Paulson & Co, Carl Icahn and Ralph Whitworth of Relational Investors. So why do I follow these guys? John Paulson is a great risk arbitrage trader. Carl Icahn likes to make a lot of noise in the biotech space. Ralph Whitworth has a great eye towards value. So we should start seeing these filings the end of this week.

Thursday, August 06, 2009

A Look Back At Forsys Metals

Back in March, I exited my risk arb play in Forsys Metals (Ticker: FOSYF.PK) because the acquirer was not able to come up the cash. I promptly exited the position generating a nice 38% loss. Well, fast forward to the present... the acquirer has the funds and the deal will close within two weeks. Do I cry and weep??? Nahh... If I were to repeat this scenario I would have done the same thing. In trading, you have to look forward and not back. A loss here and there is a good thing as it keeps you on your toes.

Sunday, August 02, 2009

Oracle Files For Approval In EU

Oracle (Ticker: ORCL) finally filed with the EU regulators (click: here) on July 30th for their blessing on the Sun Microsystems (Ticker: JAVA) acquisition. The EU provisional deadline is September 3rd so look for an early September approval by the EU. The big question is with the US regulators, which has requested additional information on the merger. I’m still looking for a closing by the end of September. An earlier closing will just be a bonus.