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).