Wow. I was pissed when Case broke 46 and I bailed. Thought that at that point the spread would be too obvious and must be indicative of something gone wrong. I had a huge position, and decided to let go at 45 15/16. I was sure it would end up closing up and I'd be regretting the sale. Can't believe my eyes where it is now. But relieved at adhering to my stop (which I never thought it'd reach). Ouch, ouch, ouch. This is the first and last arbitrage play to burn my fingers.
Now I have a ton of cash. Bought Mesaba Holdings with 1/4 of it, which controls tiny Mesaba airlines. Tiny, but without debt, highly profitable, with great return and growth numbers despite tiny multiples across the board. It's an airline, and while its ultimate growth may be limited, it's 5-year growth line appears reasonably assured. And at current multiples I think that's all I need. CEO recently left, took an exec with him, and there was a labor dispute. All weighed on the stock.
Mike |
