Tuesday, September 03, 2013

Sold Cooper Tire and Rubber Again

I took some quick profits in Cooper Tire and Rubber (Ticker: CTB) today at $31.94 generating a net gain of 1.02% over a 5 day period. This was one of the more risky merger arb plays and right now I just want to reduce my leverage a bit.


At September 03, 2013, Anonymous Anonymous said...

MT / Bhat,


Cooper Tire & Rubber (CTB) got a nice lift on Friday after the company filed a definitive proxy statement and set a date for shareholders to vote on the company’s merger with Apollo Tyres. With that seen as a vote of confidence in the deal, shares moved up from USD 31 a share to nearly USD 32, which is still USD 3 below the buyout price. Today, however, deal-seekers may have to grapple with a story out of China that Chengshan Group, a Shandong-based tire manufacturer, has filed a petition with the Weihai Intermediate People's Court to dissolve its JV, Cooper Chengshan. According to the report, which appeared in the China Business News, Chengshan Group has requested the termination of the proposed sale of Cooper Chengshan.



At September 04, 2013, Anonymous T Bhat said...

The new India fed chief is saying that the rule for is not retro-active.

At September 04, 2013, Blogger Money Turtle said...

I'm more worried about the strike that's taking place. The proxy states that the strike is non material, but you never know how it may turn out.

At September 12, 2013, Anonymous Anonymous said...

Hi Money Turtle,

Have you taken a look at NLP? This is a publicly traded LP that is majority owned by its director Nicholis J D.
He was supposed to buy out the other shareholders for $7.5. Until recently the stock was trading in the $7.1 - $7.4 range. Articles began appearing on Seeking Alpha last week that predicted the deal is likely to fall apart due to the financing expiring at the end of September, which is contingent on settlement of lawsuits which is unlikely to happen by September end. The stock is now trading at about $5, which would yield a 50% return if the deal does go through.
Do you think the price drop is justified? All the information was available before the articles were written, yet after the articles were published the stock tanked. Do you know how reliable the writers on Seeking Alpha are? Do you know if these writers ever try to manipulate the market? Your wise input would be appreciated.

Thank You

At September 12, 2013, Blogger Money Turtle said...

I have not followed NLP at all. I did take a quick look at it after you mentioned it. This deal is taking a long time to close. I would have been comfortable if they dropped a definitive proxy statement by now. With no definitive proxy statement, there probably is some kind of problem. I did take a look at the Seeking Alpha article on NLP and it is well written. The majority of the seeking Alpha articles are junk, but the ones written on NLP are good. I always worry about these tiny arb plays. The drop is probably warranted as the financing for this deal is questionable at this point.


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