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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mike 2.0 who wrote (6031)	2/12/1999 12:58:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 78531

Mike, >>You are quite right, for comparative purposes the return on such an arbitrage deal must be annualized. I haven't looked at Sbarro deal personally but on the face of it, looks like you landed a nice merger arbitrage transaction.<< This sort of transaction is new to me. The only reason I became aware of it is because I am already a shareholder and I have a lot of cash and no ideas. I am going to start looking into this strategy a little further. Wayne Crimi

To: Mike 2.0 who wrote (6031)	2/12/1999 9:50:00 PM
From: MCsweet	Read Replies (3) \| Respond to of 78531

Re: Arbitrage opportunities As for buying closed-end funds that are going open-ended, I am in NEF (Scudder New Europe). It is going to be opened, it has a good track record, and you can probably squeeze 6% from it (you could have squeezed some more if you bought right after the news). However, there will be an exit fee if you sell the fund within a year after it becomes open-ended. Also, it is not a riskless arbitrage since you can obviously lose money if the European markets go down. I think Emerging Germany and Scudder Spain & Portugal are opening soon, but their discounts are only 2 or 3%. I have heard of investors that buy likely candidates for closed-end funds that are going to open. As I recall, the strategy was successful but nothing earth shattering. BOSS (a stock I recommended earlier but sold) looks interesting to me. Company has a tender offer for 1/2 shares at $25.00. Current price is $16 3/4. Company had a lot of cash, now will be leveraged, but you'll essentially be buying one share for $8.00. With $23 mil in shares to be left outstanding and a historical $130 mil in EBITDA, this may not be too bad a deal. Any thoughts? MC