Wednesday, October 31, 2012

Sold a Little Bit of Nexen

I continue to reduce my risk profile a bit by taking some Nexen, Inc. (Ticker: NXY) off the table. I sold some Nexen today at $24.10 against the position I purchased last week at $23.50 generating a net gain of 2.54% over a 9 day period (~101% annualized return). I still believe this deal goes through, but some are anticipating that a decision will be extended from November to December.

Friday, October 26, 2012

Sold True Religion Apparel

I sold my position in True Religion Apparel, Inc. (Ticker: TRLG) today at $25.83 generating a net gain of 0.79% over a 17 day period (~16% annualized return). It’s not much, but I wanted to reduce my risk exposure a bit. Even though this company is currently exploring strategic alternatives, I don’t want to be in front of their upcoming earnings report, which is scheduled to be released on October 30th.

Thursday, October 18, 2012

More Nexen and Some Dollar Thrifty

I added to my Nexen, Inc. (Ticker: NXY) position today at $25.71 with an average cost basis of $25.75. I like the odds as the November 11 deadline approaches. Like I said before, this deal is positive for both Canada and China. Of course there will probably be some conditions placed on the approval of the merger, but it shouldn’t be a deal breaker. This will be the start of a symbiotic relation between these two countries.

I also picked up a few shares of Dollar Thrifty Automotive Group, Inc. (Ticker: DTG) today at $85.06. Hertz Global Holdings, Inc. (Ticker: HTZ) has agreed to acquire Dollar Thrifty for $87.50 in cash. The FTC needs more time to review this deal and Hertz has agreed to an extension not to close this deal before November 16. I wouldn’t be surprised if the deal closed shortly after the extension date. I'm factoring in a closing by the end of November, which would equate to a potential total return of 2.86% (~ 23% annualized return assuming a closing by November 30).

Friday, October 12, 2012

Workday IPO

I guess sometimes you are lucky… I was allocated a few shares in the Workday, Inc. (Ticker: WDAY) IPO at $28 and now it’s trading around $45. I usually just flip IPOs that experience a nice pop, but in this case I’m going to hang on a bit and see how things develop. The company has a seasoned CEO, Dave Duffield, who founded of PeopleSoft. I see the potential of Workday turning into something big down the road.

Thursday, October 11, 2012

Workday IPO and Nexen

I’m going to give the IPO game another try. I put in an indication of interest for a few shares of Workday (Ticker: WDAY). They develop cloud based software for human capital management. It looks like there’s good demand for the IPO. This is scheduled to price tonight and start trading tomorrow. The probability of getting an allocation is pretty low, but we’ll see…

I nibbled back into Nexen, Inc. (Ticker: NXY) today at $25.80. The Canadian government has extended the review for 30 days so the new deadline will be November 11. I believe the Canadian government will announce its decision during this time. I’m looking at a potential 6.60% return (~ 28.90% annualized return assuming a closing by December 31). I’ll probably start adding more aggressively on any dips.

Wednesday, October 10, 2012

Some True Religion Apparel

I initiated a position in True Religion Apparel, Inc. (Ticker: TRLG) today at $25.61. This is only a small position as it currently makes up ~ 3% of my portfolio. The company announced today that it is exploring strategic alternatives (also known as a sale). There are reports that both strategic and private equity companies are interested in the company. The company has a nice cash position and currently has a dividend yield of ~ 3%. I see a high probability of a deal...

Monday, October 08, 2012

GCVRZ Dutch Tender Results

Sanofi (Ticker: SNY) announced the final Dutch tender results of its purchase of the CVRs (Ticker: GCVRZ). The company was attempting to buy back up to ~ 30% (86,766,040 shares) of its CVRs, but only 40,025,805 shares were tendered. So everyone who tendered will get paid out $1.75 on October 11. I was expecting a relatively low tender, but not this low. I know a few people with received the CVRs from the Genzyme acquisition and no one tendered. They are all waiting for the Lemtrada story to play out. I purchased the CVRs on September 28 at $1.68, which equates to a 4.17% return over a 14 day period (~ 107% annualized return). It was only a 4% position, but still a nice little pay day. I'm still long the CVRs I received from the Genzyme acquisition.

Thursday, October 04, 2012

GCVRZ Dutch Tender Offer

On September 1st, Sanofi (Ticker: SNY) announced a Dutch tender offer for up to 30% of the Contingent Value Rights (CVRs) (Ticker: GCVRZ) at a price of $1.50 to $1.75. I picked up some CVRs at $1.68 on September 28 and promptly tendered. I am expecting a high proration tender at the top end of the price range. This is a pretty significant tender as they are attempting to buy back a third of the CVRs. These CVRs were distributed to Genzyme shareholders as part of the Sanofi takeover. The CVRs have a potential payout of up to $13 if Lemtrada for MS turns out to be a huge blockbuster. I am holding onto the CVRs I received from the Genzyme buyout and will not be tendering those shares. Note that there is no Guaranteed Delivery for these CVRs, which means that the shares must be settled in your account no later than October 5th in order to participate in the Dutch tender offer. I just found out about this clause today. Usually, you can purchase up to the tender expiration date and tender, but not in this case.