Thursday, August 04, 2011

Some Blackboard

Ouch… What just happened??? You don’t want to be catching a falling knife on a day like this. I was focusing on some risk arb opportunities. I picked up some Blackboard (Ticker: BBBB) today at $42.42. This company has already agreed to be acquired by Providence Equity Partners for $45 in cash. This is a ~ 6% return (~ 20% annualized return assuming a mid November closing). The probability of this deal falling apart is small. The stock simply sold off because people needed liquidity. Institutions just sold blindly. Not a very efficient market with many of the deal stocks today.


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