Back in ICU Medical
I nibbled back with a small position in ICU Medical, Inc. (Ticker: ICUI) yesterday at $68.51. The stock rose a bit on news that the company cancelled a conference presentation. Company says it was a scheduling conflict, but regardless something is starting to happen. It’ll be awhile before this one plays out so just have to be patient.
posted by Money Turtle @ 6:57 AM
6 comments
6 Comments:
MT,
FYI, my observation. ICUI take your profits today ($70.82) while you can. Extremely light volume. On Tuesday stock will sell off a little on no deal news.
Regards,
inforesource7
I wasn't able to tune into the market yesterday. I'll keep an eye on it...
BMC is moving on news of some interest during the "go shop" period.
MT,
I watch many stock symbols during the day, including deals already announced and potential deals and sometimes there is no logic to the price action in comparison to what the broad market is doing. This is great for our already announced deals (they are somewhat protected).
No news to send ICUI up other than maybe some gradual short covering melt up based on the canceled healthcare conference. I saw the stock price stall at the daily upper resistance level, approach its 52 week high of $71.29 and being Friday, I thought that it made a decent run for now.
I notice the after hours price low was $68.68 but only on 1,026 shares. Typically after hours hanky panky.
BMC - yes had a nice price pop on Friday due to news about 30 day go shop. This is typically activity during the go shop periods. Whether any higher bids come out of it we will see. If so than we benefit. Here is some details to digest.
"It sounds like BMC Software’s (BMC) “go shop” period is generating some interest. This morning BMC filed a preliminary proxy to support its USD 46.25 sale to Bain Capital and Golden Gate Capital. The deal was announced on 6 May, though it included a 30-day window for BMC to scare up a better offer. Today’s proxy offers an update on that process and according to the filing, two financial sponsors have asked for confidentiality agreements so they may engage BMC. Also, on 14 May a strategic entity asked for a confidentiality agreement to engage BMC. It’s not entirely clear from the filing whether that “strategic” actually executed an agreement because the filing goes on to say that as of 21 May, nine strategic entities had been contacted and none had executed agreements."
Regards,
inforesource7
MT,
OPTR might be at a good entry point at this time. OPTR SEC 13G filing was posted on Friday after the market close but not reported on Yahoo yet. James Flynn of Deerfield Management reports 5.54% passive stake in Optimer.
Would a hedge fund being taking this kind of position if he did not think there would be a deal in the near future?
FYI, Tuesday morning the stop might pop a little due to this news. OPTR is shorted so thats why it has some big stock price swings.
I went back and looked at LIFE and BMC and noticed the stock short interest has increased post deal announcement. GDI decreased. I don't understand that at all.
Regards,
inforesource7
MT,
Many opportunities popping up lately. I know you like your healthcare/tools/pharma plays. Sometimes its good to deviate a little. This one came up Wednesday after the close and may have been lost a little with the broad market volatility. I would not be surprised if a deal gets announced on Tuesday. If not, it may be worth small position at the right price.
Here are three articles explaining the details of which the american bankers article is the most informative.
The target is Lender Processing Services (LPS). What are we to believe in a news leak, $2.9b or $33.00 per share. The current market cap is $2.80B at the closing price of $32.99. The EV is $3.50b. News leaks always focus on the market cap.
6-25-08 the initial IPO opening price was $30.30
10-23-09 all time closing price high = $43.99
10-17-12 most recent closing price high = $30.63
I say a deal might get done at $34.15 or $2.9b market cap.
OK, so why bother if the current price is so close.
crade idea: consider a cover call. Buy stock at $33 and sell a DEC 2013 $34 yall for $2 or sell a DEC 2013 $35 call for $1.50. If deal stays under either strike then keep the premium. $2/$33 = 6% or $1.50/$33 = 4.5%. If the deal exceeds either strike let your shares get called away and keep the premium. Annualized ROI depends on how long you hold your position. If the deal is stock and cash there is a chance the price could run up some like WCRX did so the stock price action will get more interesting for a few days.
http://blogs.wsj.com/moneybeat/2013/05/22/fidelity-national-financial-thomas-h-lee-in-talks-to-acquire-lender-processing-services/
http://www.reuters.com/article/2013/05/23/us-lenderprocessingservices-offer-idUSBRE94M01120130523
http://www.americanbanker.com/issues/178_100/fnfs-reported-bid-for-lps-reflects-industrys-drive-toward-bundling-1059374-1.html
Regards,
inforesource7
Thanks for the info on LPS. It took a quick look at it when the news leaked, but the stock traded up. Your options strategy on LPS is a nice way of playing one.
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