Saturday, November 20, 2010

Some Del Monte Foods

Yesterday, I picked up a few shares of Del Monte Foods Company (Ticker: DLM), which is rumored to be taken over by KKR (Ticker: KKR) in a leveraged buyout. The price being floated around is $18.50 per share. I purchased shares throughout the day with an average cost of $17.45 per share. We should hear in a week or two whether they are able to close this deal or not.

I’ve also been trading Massey Energy (Ticker: MEE), but that’s a tough one to place a big bet on. The board will decide next week whether to seek strategic alternatives (aka sale of the company). The CEO does not want to sell, but may not have a choice. I’m keeping a close eye on it.

My largest arb play is in Genzyme (Ticker: GENZ) and I have a strong conviction on this one. I’m adding to my position anytime it falls into the $69 to $70 range. I believe patience will be well rewarded.


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