Wednesday, June 22, 2016

China Ming Yang Wind Power Group = Done Deal

China Ming Yang Wind Power Group (Ticker: MY) closed today as expected. There were clear indications since early last week that this deal was going to close today. The company filed with their ADR sponsor for the termination of their ADR program on June 13th. My net gain from this arb play will be 1.58% (annualized gain of ~ 48% assuming the cash hits my account by 6/27). This position comprised of ~ 17% of my portfolio. Now, let’s see when Qihoo 360 (Ticker: QIHU) will close…

Wednesday, June 15, 2016

Bought China Ming Yang Wind Power Group

Yesterday, I initiated a position in China Ming Yang Wind Power Group (Ticker: MY) at $2.42 (~ 14% position). This company is being acquired for $2.46 (after subtracting the $0.05 ADR fee from the buyout price of $2.51). The company recently notified Citibank (their ADR sponsor) that they are terminating the ADR program as of June 23rd (click here), which I expect to be the last trading day. I am modeling that the cash will hit my account by June 27th, which would equate to a net gain of 1.65% (~ 42% annualized return).

Thursday, June 02, 2016

May 2016 Performance

Well, it’s a nice to be finally in the green for the year. A good portion of the positive performance in May can be attributed to the various special situation / merger arb plays. For example, I got lucky with Nanosphere (Ticker: NSPH) in which there was a nice bump in price as another bidder came knocking on the door. In addition to Nanosphere, I am currently in the following special situation / merger arb plays: DreamWorks Animation (Ticker: DWA), Medivation (Ticker: MDVN), Qihoo 360 (Ticker: QIHU), Morgan Hotel Group (Ticker: MHGC), WaferGen Bio-systems (Ticker: WGBS), Krispy Kreme (Ticker: KKD) (short puts) and Cabela's (Ticker: CAB), which I just initiated this afternoon after checking out a write up from the NY Post.

I do not remember a time in which there was so much M&A activity occurring in a single month. In the start of the year, I envisioned that M&A would be subdued for 2016, but I’m glad to be wrong.

Now it’s just watching the grass grow as I wait for these positions to close…

2016 Performance Year to Date = +5.17% with the running monthly returns as follows:

January -5.47%
February -3.50%
March +7.51%
April +0.84%
May +6.34%