Thursday, November 22, 2012

Back in Nexen Again / Teavana?

I added back to the Nexen, Inc. (Ticker: NXY) position that I sold on Monday. I picked up shares in Nexen at an average price of $25.31. I’m still looking to add, but will wait for an opportunistic moment.

I also took a stab at Teavana Holdings, Inc. (Ticker: TEA) on Tuesday when a hit piece was published by a short seller claiming high amounts of pesticide in their tea. I picked up some shares at $14.88 and subsequently sold on the same day at $14.93. I only made some lunch money on this trade. I’ll be keeping a close eye on Teavana as I believe the deal with Starbucks will eventually close. I want the dust to settle a bit before committing any serious money in Teavana as an arb trade.

Monday, November 19, 2012

Sold Some Nexen, Inc.

I took some Nexen, Inc. (Ticker: NXY) off the table this morning to reduce my risk a bit. I sold Nexen at $25.70 against the position I purchased at $23.73 on 11/08. I generated a net gain of 8.30% over a twelve day period (~249% annualized return). I still have a decent position in Nexen and still see a good chance that the Canadian government approves this deal. I just don’t want to get too greedy as the year winds down.

Thursday, November 15, 2012

Dollar Thrifty = Done Deal

It’s official now… The FTC has approved Hertz Global Holdings, Inc. (Ticker: HTZ) acquisition of Dollar Thrifty Automotive Group, Inc (Ticker: DTG). This has got to be one of the most volatile merger arb plays that I’ve been involved in. In any case it’s done and I can sleep a little better now. I may or may not tender my shares tomorrow depending on the price.

Edit: I tendered my shares today (11/16) instead of selling in the market. After the close, Hertz announced the expiration of the tender offer. I expect to see the cash in my account next week.

Wednesday, November 14, 2012

Dollar Thrifty Almost Done

It finally looks like the acquisition of Dollar Thrifty Automotive Group, Inc. (Ticker: DTG) by Hertz Global Holdings, Inc. (Ticker: HTZ) will receive FTC approval. The Wall Street Journal and Bloomberg are both reporting that the FTC will approve this deal. I picked up a few more shares of Dollar Thrifty yesterday at $84.86 bringing the position up to ~ 20% of my portfolio. Assuming a conservative close of November 30th, my net gain from this position will be ~ 2.99% (annualized return of ~ 23.48%). This one really tested my stomach...

Sunday, November 11, 2012

Some Nexen and Dollar Thrifty Update

It hasn’t been all that quiet on my end… During the past week, I’ve started to rebuild my position in Nexen, Inc. (Ticker: NXY) with purchase prices ranging from $23.62 to $23.78. We should finally receive a decision by the Canadian Government in early December.

My Dollar Thrifty Automotive Group, Inc. (Ticker: DTG) position has been through a wild ride recently. It finally looks like this deal is heading towards the finish line. The Wall Street Journal is reporting that Hertz Global Holdings, Inc. (Ticker: HTZ) has tentatively agreed to divest some airport locations as requested by the FTC. This will allow the FTC to give the green light on this deal.

In terms of other arb positions, I have a small position in Fushi Copperweld, Inc. (Ticker: FSIN). I was in this position early on and sold. I’m back in now as the definitive proxy has been filed and the shareholder vote is scheduled for early December. I expect this deal to close shortly after the shareholder vote. I’m looking at a total return of ~ 2.37% (annualized return of ~ 15%) assuming a closing by December 31st. It’s not great, but still a decent return with relatively low risk.