Well, the locked in take out price is based upon the value of NT now.
BAY got a great boost when the deal was settled upon. The market, justifiably, never valuated BAY at the peak value $38 (0.6 NT) take out price, due to the uncertainty which exist between now and the finalization date.
In light of what could well be turning into a bear market and a chrisis of confidency in the presidency lurking on the Monday morning time horizon, I would say hold all long stock assets at your own risk.
I cashed out all of my stock positions over the the past few weeks, moved my 401K from stocks to bonds three weeks ago, and my stock portfolio as it stands now is actually net negative in value. It consists primarily of shorts in the high beta internet stock sector, with a huge short position on AMZN at 142 3/4.
The past three weeks have just been a continuation of the Bull market, in the short sense to me. If I move my 401K back to Stock Index 500 today, I will have seen a 10% performance improvement over anyone who played the market the straight one way.
Of course this, as any strategy, is only as good as the investor is good at being right and at the right time.
I wouldn't disagree with anyone who is happy to hold through thick and thin. I believe BAY will perform quite well, long term, and may buy back in to NT, or ASND, or CSCO for that matter. Actually, CS looks about as ripe for a runup as any stock I've ever seen in the sector, at this time. It is trading at a mere $3 above book value. Now thats truly what I'd call a reason to speculate a company might be a Lucent (LU) aquisition target!
-- Eric |
