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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?


To: David Alon who wrote (3643)7/4/2002 4:10:31 PM
From: Scott Mc  Respond to of 11633
 
I've had quite a bit of luck lately buying the trusts on the secondary offerings. They usually pull back about 5+% on the announcement, trade slightly under the announced price and then return to their previous price within a short time. I'm exploring this strategy further even with common stock issues.

It strikes me as low risk, on the announcement, arbitrators short the stock (since they know they can get new shares) and cover their shorts when the stock is issued.