Yeah, that one's definitely going to stand out as a very memorable trade. Especially since I wasn't even planning to position-trade it like I do with ELN to gradually increase the size of my position. Selling high and buying low when I can, so I can roll the profits into more shares.
The only one that trumps this one, but actually had some smarts to it where this one was pure luck, was some years back when INTC always liked to sandbag in their mid-quarter updates, when they did just such a soft guidance, I bought $450 worth of OTM calls that would expire *after* earnings, and sold them the day before expiration for $8800.
This was so long ago I was trading over the phone at AG Edwards, and was the talk of the local office for some time after that one. <g>
Getting back to IUSA, did you see the guy on CNBC this morning who represents 10% of the outstanding and was complaining that $11.75 was too low and I think he said something like $15 or $18 would be more like it?
I half suspected something like that might happen once the buyout offer was announced, but in looking at the price history, I really expect that the shares will get sold for his price. It's not a huge premium over pre-warning prices, but it's higher than all but the few days leading up to the warning.
Kinda makes one have to wonder, though, if the warning was motivated at least in part by the fact that the stock had gotten over the price he surely had long ago decided he wanted to pay.
I just don't expect a lot of squawking, though. There are VERY few shares out there that were bought at a higher price than $11.75 |
