Wednesday, December 12, 2012

Fushi Copperweld = Done Deal

It looks like Fushi Copperweld, Inc. (Ticker: FSIN) will be a done deal this week. Yesterday, the shareholders approved the merger and the company anticipates a closing by the end of this week. I had a relatively small position (~ 11% of my portfolio) in this stock. I’ll be generating a net gain of 2.37% over a 50 day period (~17% annualized return assuming I receive the cash by 12/21). Although this was a China play, I saw this as relatively low risk arb play based on the committed debt financing by the China Development Bank.

I’ve also been adding to my Nexen, Inc. (Ticker: NXY) position as I see a high likelihood that they will receive approval from CFIUS by the end of the year. We’ll see…

Edit: I sold my position in Fushi Copperweld today at $9.46 generating a net gain of 1.94% (~14% annualized). I saw more compelling opportunities and picked up some Gardner Denver, Inc. (Ticker: GDI) at ~ $73 per share.


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