June 2016 Performance
June was a strange month as you were near new highs and then Brexit hit the market. The positive for the month was the closing of the Nanosphere acquisition by Luminex. I guess there was one other positive… the nice earnings report from Constellation Brands, which I continue to hang on for the long term. Those two pretty much sums up the positives for the month.
M&A
continues to be challenging as I wait for several deals to close. I have built
up a position in Qihoo 360 (Ticker: QIHU) and based on the guidance by the company, this deal should
close by mid-August. I like the odds of this deal closing, but it is a China
acquisition so there’s going to be some doubt.
I’m also
involved in the Medivation (Ticker: MDVN) special situation play. I initially entered this
position based on the hostility by Sanofi (Ticker: SNY), but as I learn more about this
company I actually like it as a standalone basis. I wouldn’t mind if Sanofi
walked as I agree with the company that there is significant value creation
ahead by expanding the indication of Xtandi and its potential pipeline. So it’ll
be interesting to see how this plays out.
That’s it
for June…
2016 Performance
Year to Date = +2.43% with the running monthly returns as follows:
January -5.47%
February -3.50%
March +7.51%
April +0.84%
May +6.34%
January -5.47%
February -3.50%
March +7.51%
April +0.84%
May +6.34%
June -2.6%
9 Comments:
Hi,
got back in MDVN today after the news about bidding war. I think 70+ seems to get the deal done.
You think MDVN takes 6 months to be bought?
Possible, could take up to 6 months...
what is this pressure on QIHU? damn.. each few weeks something like this... with mid august close announcement...
QIHU - Typical volatility with a China play. Just need to stomach this for a few more weeks.
ok :)
something of interest. CVT is being acquired at $36. The shareholders just approved according to the 8K filing. So it should close soon.
https://www.sec.gov/Archives/edgar/data/1122897/000112289716000038/form8-kspecialmeetingvotin.htm
DCFrancis,
What are the largest risks that cause the spread in your opinion?
I guess this is the reason for the increased spread:
http://www.businesstravelnews.com/Meetings/DOJ-Intitiates-Deeper-Dive-on-Cvent-Vista-Merger
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