New Capital
Contrarian, deep value, long/short equity, special situations

Equal Energy: Merger Drama Could Lead To Upside

Equal Energy (NYSE:EQU) entered into a definitive agreement to be acquired by PetroFlow Energy at $5.43 per share back in December 2013. Right after this agreement, Equal's shares were trading in the range of $5.30-$5.40 leaving only minimal gains for merger arbitrageurs; however, recently the price declined to $4.30-$4.70 with only two weeks left till the effective merger date (1st of May). Investors seem to be overly concerned with a possibility of a merger failure and do not recognize the upside from the other competing bids and proposals.

At current share price levels investors are likely to realize upside potential of at least 15%-25% in a few weeks or a slightly more optimistic 70%-180% to be reached by...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details