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Strategies & Market Trends : ARBITRAGE FOR THE SMALL INVESTOR -- Ignore unavailable to you. Want to Upgrade?

To: TimbaBear who wrote (3)	11/29/1997 4:31:00 PM
From: David K.	Read Replies (1) \| Respond to of 34

I have not been following wcom. I am currently interested in the more simple arbitrage plays. A takeover is announced at a certain price and the market keeps the acquired company at 15 to 20 percent discount from takeover price. If one does the proper research , one can gain a tidy profit. Of course, there are always risks. One idea is to find a takeover candidate that is a good long term hold even if the takeover fails. Further discussion of abitrage plays, complicated or simple, is welcome.

To: TimbaBear who wrote (3)	11/29/1997 11:04:00 PM
From: T Roberts	Read Replies (1) \| Respond to of 34

when a company offers stock to pay for another...they specify # of shares you'll receive for each share of the target company that you own. when you short the acquiring company you simply sell short the number of shares you'll receive...and when the deal goes through you take those shares and cover your short sell.... you don't have to short the acquiring company..it's just done to lock in a certain percentage gain..it seals what you'll get provided the deal is done