Violent Capitalist

There's Still Hope for Focus Media After Sina Acquisition

kagame, if you employ merger arbitrage it won't matter that sina shares are rallying harder than FMCN

FMCN can go to 0, you lock in the value of SINA shares and you'll still have a net 50% profit on your original long FMCN stock.

you can also lock in further gains on your FMCN stock by buying some puts (I suggest Oct 2009 strike 5)

all of it is on my blog violentcapitalist.com

just sit back and relax! your only risk is the transaction won't go through


On Mar 20 06:28 PM kagame wrote:

> So apparently the merger shares would count against options.
>
> So the simply play here is long FMCN, write calls. I would short
> SINA but its rallying harder than FMCN, there is no correlation there
> right now.
>
> Why is the marker so irrational about this? Theres plenty of info
> out there that should allow people/funds/hedgies to buy on this misvaluation.