PENN. As a value investor, I assume if a value stock decreases on no adverse news, that would increase the margin of safety a new buyer has in coming into the stock.
However it is very scary with buyouts. If the stock declines on no adverse news, it becomes more of a concern that the deal won't be consummated, and the insiders and big money well know this and are exiting. So to me, it's just the opposite of value stocks: if the stock of the acquired firm declines substantially before the buyout is completed, it is a signal that the margin of safety has decreased (imo). As implied by Bart Hoenes' post here.
Anyway, thanks for posting info. on PENN, rllee. The key issue apparently is "the unknown financing climate over the next five months (which) presents an inherent risk."
As posted, I have a few shares, betting that the merger will proceed. I upped my position a little today. The financing may or may not kill the deal, but imo, the stock has dropped recently - from what I see - because it's in the gaming sector, and all these stocks in this sector that I am following were down recently too. Nothing specific related to PENN.
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