Hallo S. L.,
thanks for Your kind hint.
Now I've got it: The 14,31 to 20,45 limit to the 0,489 factor were mentioned in a conference call (which I do not listen from Germany (and Z. posted)) an some obscure SEC filing (there stated differently @ 14 - 20 ??). I only checked QNTM and Meriden website, there You shall not find the above mentioned details.
Unless the deal will not close, or QNTM tanks (for what new reason after such recent bad news), @ 7,625 $ MDCD looks like a good buy to me.
I already have QNTM overweighed in my portfolio. So to really play the arbitrage, I would have to short QNTM and long MDCD. As I still have faith in QNTM I'd rather not sell QNTM. Or should I sell all my QNTM and buy for the money MDCD?
Now a question to the thread: How will the stocksplit affect the QNTM-MDCD-deal?
To which stock will the deal refer, when QNTM splits into two tracking stocks "QNMT-drive" and "QNTM-Tape" (I miss the track stock symbols)? Or must the deal before the split happen? That would speed the thing up, I suppose!
My last arbitrage was PLAT - CA, which worked nicely to my favour. I begin to feel some appetite to exploit market imballances, such as the MDCD undervalue, compared to the acquiring company. PLAT was a big buy for CA, so CA's stock could have tanked.
In this QNTM-MDCD case, the swallowing fish is so much bigger than the swallowed fish, that QNTM, from eating such light food, should not move at all. What do You think?
Lutz |
