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

To: Bob Rudd who wrote (7224)	5/19/1999 7:08:00 PM
From: James Clarke	Respond to of 78628

The deal was announced three days ago. We are the arb community. The market is not efficient, otherwise I would not be wasting my time with value investing. Why might Case be mispriced? 1) If you're a portfolio manager who owned Case before the announcement you automatically sell half. Otherwise if the deal falls through, you look like an idiot. And portfolio managers would rather lose money than look like an idiot. 2) A lot of deal arbitrage money disappeared last fall. Look at the spreads on some of the oil deals. Case was down again today. This is a screaming buy to anybody looking for a cash alternative who understands probabilities and is willing to take a little risk.