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.
posted by Money Turtle @ 1:51 PM
2 comments
2 Comments:
TEA will close - the timing/circumstances of the report are complete BS (some short clearly got caught the wrong way on the M&A deal)
There seems to be a developing cottage industry trying to shake out weak hands in M&A arb trades...
I totally agree. There's a high probability that Starbucks will close the deal with Teavana. A good risk / reward opportunity assuming a close by the end of December.
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