David, irreguardless of whether this is a smart aquistion, the deal will not be closed until next year. In the short run, people will sell short BORL and buy VSGN to lock in profits in the difference of the two prices. Both stocks will start to errode, especially if this few day general market rally reverses. As the price errodes more people will sell, happy to wait and see what happens in 6 months after the merger, and see if they are going to continue to make money. I agree the Jan 10's and April 10's are shakey. I closed out mine last week and this week. Yesterday I tried to write some Jan 12.5 against my Jan10's but nobody would buy them at 1 1/16. I dumped my Nov 12.5 at 25 cents yesterday.
I had the same thing happen to me in a stock call GTIS. A game company that I had bought at 7.5 and had just hit a high of 12 3/4, they announced a takeover, the stock fell to 11 that morning. Over the next several weeks, the stock ground its way down to 8 1/2. I think they are a great company, and will kick butt in the long term, but until the cloud of the merger is resolved, the stock is dead. Just my opinion of course.
I do think by the end of next year BORL will be doing extremely well. I am holding 2000 shares and 20 VOBAB. I wanted to thank you for the suggestion to buy WOBAB on this thread a long long time ago, I doubled my money on your advice.
Thanks,
JV.. |
