Bought: Actelion and Valspar
I entered two new special situations / merger arb positions today: Actelion (Ticker: ALIOY) and Valspar Corp (Ticker: VAL). I went in relatively small as both are ~ 4% positions. I believe Sanofi (Ticker: SNY) is motivated to get the deal done with Actelion and it looks like an agreement with the Fed is close regarding Sherwin Williams (Ticker: SHW) proposed acquisition of Valspar. In addition to these two new arb plays, I have Wafergen (~9% position), which I hope to hear some preliminary Q4 numbers in ~ 3-4 weeks or so. Wafergen’s (Ticker: WGBS) buyout price will be based on its 2016 revenues. I’m also looking to get back into Rite-Aid (Ticker: RAD) once again… Getting more busy on the merger arb front as the year comes to an end.
posted by Money Turtle @ 1:34 PM
9 comments
9 Comments:
Is rad a buy now that stores will be sold?
I hope so... I bought a large position RAD today.
MT,
In regards to Actelion and ticker symbol ALIOY how do we translate this stock price to others that are mentioned in the business press as this appears to be a Swedish company with no ADC stock symbol?
Thanks...
Netbull7
MT,
My correction to my earlier comment on Actelion. I see now that ALIOY is the ADR and ALIOF is the OTC and both have far different stock prices. What is the translation of the ADR price to the OTC ALIOF stock price if you know?
What is your opinion on trading these stock symbols in such a low share volume environment?
Thanks,
Ntbull7
It looks like ALIOF is 1:1 to the Actelion ordinary shares.
I've been playing the ALIOY, but the spread can be very wide. The most efficient way to play Actelion would be to purchase directly on the Swiss Exchange (ATLN).
MT,
OK let me ask an usual question. How does one like you or I gain access to the Swiss Stock Exchange to potentially buy ATLN shares? Is there is U.S. brokerage that offers such services? I am currently with TD Ameritrade and will reach out to them next week and inquire.
Thanks
Netbull7
I don't believe TD Ameritrade offers the service of purchasing shares directly on the foreign exchange. You have to go with Interactive Brokers, Fidelity or a full service firm.
I think few things to consider when buying stock on foreign exchange, which IBKR offers would be exchange rates, filing tax return in that country. Its better to buy ADR or better take a pass..
Thanks for the info on purchasing shares on foreign exchanges...
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