Trader J's Inner Circle Message Board

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Strategies & Market Trends : Trader J's Inner Circle

NVDA 182.35

-0.6%

Dec 5 9:30 AM EST

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To: MMK who wrote (5337)	1/20/1999 3:30:00 PM
From: nitelord	Read Replies (3) of 56535

Hi all -- I've been lurking quite a while. This is a great thread, and I hope to begin regularly contributing in return for all the great information everyone has openly shared. Regarding the buyout question, if an offer is made for ASCT the price should jump up near the offering price (say 9 1/2 to 9 3/4 assuming your $10 offer). It will usually not be at the offer price b/c the market will discount the offer based on the possibility the deal will not go through. On some deals, the price actually exceeds the buyout price b/c the public believes competing bids will come in (e.g., the ciena-tellabs merger w/ company A on the sidelines). Regarding an exit strategy, I would base it on how confident you are that the deal will go through. If confidence is high, you can wait it out and get the full offer price (although this may take 3 weeks or more after the deal is finalized), or take the discounted price immediately. I don't think there will be huge drop in price (1 point or more) if we all rush to the exit. If the difference b/w the offer price and the current price becomes too big, the arbitrage boys (and girls) usually come in to close the gap. Here's hoping for the best! nitelord

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