Tuesday, December 06, 2016

Sold Virgin America

I closed out my position in Virgin America (Ticker: VA) today at $55.75 after the wires reported that an agreement was imminent with Alaska Air (Ticker: ALK) and the DOJ. I was able to generate a net gain of 1.54% (~19.23% annualized return) with the position that was initiated on 11/08/16. This position was no longer attractive assuming a year end close. Now looking into other hairy arb plays…


At December 07, 2016, Anonymous Anonymous said...

Just to recap some of the open deals:
RAD - awaiting store sales and regulatory approval. Potential return is ~11%
NXPI - This is not set to close for about 1 year. Potential return ~12%
WGBS - Price will be determined based on revenues from 2017. Indicating a buyout price of over $5 per share. Expected return > 4%, potentially allot higher.
VA - Expected to close by year end. Potential return ~.44%
LNKD - Almost no profit left.

Any other deals worth examining? What about CKEC? Looks like the option to get paid 1.0819 shares of AMC, might be a nice option. Does anyone know if they are limiting the number of shareholders who can take the stock through proration? Potential return for getting AMC stock is ~7.23%

At December 07, 2016, Anonymous Anonymous said...

Upon closer look at the CKEC merger:
It seems that it is subject to prortion. "This election is subject to the previously disclosed proration provisions in the AMC merger agreement, such that 70% of the total issued and outstanding shares of Carmike common stock will be converted into the right to receive the cash consideration and 30% will be converted into the right to receive the stock consideration."
If one gets an allocation of 30% stock, profit is just ~ .5%

At December 12, 2016, Anonymous Anonymous said...

Hi MT,

I suppose you meant you sold at $56.75.
Strange that people are buying this now at $57 or even a little more. Why would anyone pay $57 now?
Do you have an idea when this will close?

Looking forward to your new picks.


At December 12, 2016, Blogger Money Turtle said...

Yes, I sold at $56.75. Don't know why anyone will pay $57. Maybe some short covering?


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