Monday, December 16, 2013

Spectrum Communications = Done Deal

Spectrum Communications (Ticker: SPRD) is finally going to close. Today, the company issued a press release stating that they have obtained all PRC regulatory approvals and plan to close the week of 12/23. I sold a bunch of the Jan 2015 $30 Puts for $0.50 and will let those expire in January 2014. This arb play worked out well as I was playing the common early on and then switched to selling the Puts. I was too optimistic in terms of the closing time when I was playing the common. I’ve learned to give plenty of time for a closing when you’re dealing with the PRC.


At December 16, 2013, Anonymous Anonymous said...

This one tested our patience, didn't it? What a pain these China deals seem to be if only because they drag out so long. Even with MOFCOM approval they are not closing immediately but waiting a whole week. GL, AT.

PS- RDA is the one to watch as it's twinned to this deal with the same buyer. They dont have all the pre-approvals necessary yet despite inking a deal. Some spec it could blow up since they disrespected the bureaucrats they need the approval of.

At December 17, 2013, Blogger Money Turtle said...

I've also been keeping a close eye on RDA. Not playing it yet. If it follows the Spectrum play book, it's got a long way to go.

At December 26, 2013, Anonymous Anonymous said...

Any domestic arb plays that look interesting?

At December 26, 2013, Blogger Money Turtle said...

I don't see any interesting domestic arb plays right now. There's some small / microcap ones, but I'm not playing them.


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