Tuesday, November 22, 2011

Bought Some Global Education & Technology Group

The China plays have been good to me so far. I picked up a few shares of Global Education & Technology Group Limited (Ticker: GEDU) yesterday at $10.54. This company is being acquired by Pearson PLC (the publisher of the Financial Times) for $11.006 per share. Normally I would not look too much into a deal like this because a deal usually takes 3 months or so to close if everything goes well. I decided to read the press release for the fun of it and the thing that caught my eye was that they expect to close this deal before the end of the fourth quarter of this year. Now this starts getting interesting and I ran some quick numbers and this looks like a decent merger arb play. I'm looking at generating a total return of 3.95% (34.68% annualized return assuming a closing date of 12/31/11) with a purchase price of $10.54. I’ll take this kind of return anytime…

Tuesday, November 01, 2011

Harbin Electric = Done Deal

Harbin Electric, Inc. (Ticker: HRBN) announced after the bell today that the closing of the management buyout for $24.00 in cash per share will occur on November 2nd and the stock will be delisted. The cash pay out will occur shortly thereafter. I actually picked up a few more shares today at $23.37 and $23.51, which equates to a quick 2.3% gain. I'm starting to like these China management buyouts as there are lots of skepticism surrounding them, which allows for a nice fat arb spread. I'm keeping my eyes on a few more China plays and hoping to add / initiate positions in them soon.