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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (46508)	2/10/1999 7:28:00 PM
From: Freedom Fighter	Respond to of 132070

Sbarros a Good Deal!!, The Sbarro family recently agreed to up the offer for the shares it does not already own to $28.85. Shareholders accepted. (I think it's still light) Today, Sbarro's closed at 25 15/16. That is a 2.9125 point gap between the closing price and deal price. I spoke to the company several weeks ago and they said they expected the deal to close in around four months. I have not spoken to them since then and there's been no news that I am aware of. If the deal closes on schedule, an investor will receive approximately 11% (+/- depending on commissions and the number of shares purchased) over a 4 month period (perhaps even less). This works out to an excellent annualized rate of return for a deal that has an extremely high probability of closing. For those of you fearful of an imminent crash or the possibility of the deal falling thru, a June 25 Put can be purchased for 1 - 1 1/16. This strategy surrenders some return, but it STILL works out OK. Worst case if the deal falls thru and the stock collapses, you own it for about $24. Not such a bad downside considering the family loves it at 28.85 and I think they are stealing it at that price. A collapse of course is a very low probability event. Today, I upped my position with the PUTS. The net price I paid was 26 15/16 including the puts. I calculated the annualized rate of return at slightly north of 19% after commissions assuming a 4 month closing. I suspect it will be sooner and higher. Wayne Crimi - Value Investor Workshop members.aol.com