SCOP.
Lonny,
There are several reasons why I sold my SCOP today:
1. I don't know anything about SEBL, never traded it, don't have a feel for it, don't know the chart.
2. Assuming the market believes the deal will go through, the price of SCOP will be proportional to the price of SEBL by a factor of 0.36. If SEBL goes down, so will SCOP. If SEBL goes up, so will SCOP. I don't like that coupling because SCOP will not trade based on it's own technicals.
3. If the deal falls through, SCOP will likely trade back to 12. Given the reaction in SEBL today, their shareholders might not approve the deal. Who knows? That's too much risk for me to take.
4. I had a big gain and banked the money.
5. I can always buy it back if I want.
Best of luck,
Dan |
