Yeah, well there's always an arb discount. This is interesting though. Depending on how confident you are with the 1.5:1 ratio, it appears as though you could buy 10,000 shares of COMS @ 57 5/8, sell 10,000 shares of COMSV @ 10 3/4, short 15,000 shares of PALM @ 33 3/8, and pocket $31,875 with "zero" risk. I'm guessing we'd have to be in pretty tight with a broker to be able to sell COMSV early and get shares of PALM to short though; and there is that pesky detail of the margin requirements, :-( Jeez, I wonder who you have to be to get a deal like that?
Probably ought to do it Monday morning though, I'm guessing that arb discount is gonna shrink pretty fast in the next 7 days or so. |
