Violent Capitalist

Five Cash-Rich Companies Worth a Look

Probably for any reason or a combination of the following:

1) investors are concerned about lower ROIs in the Chinese advertising market
2) people don't understand the deal or have not been paying attention (it's not well publicized)
3) FMCN wanted to buy a foot massaging company or something 1-2 months back (wtf?)
4) FMCN will be cash flow negative post sale and will have nothing to prevent the stock from trading at $1-2/share post sale

Nevertheless, doesnt mean you cant earn arbitrage profits of 85% or more! Check out my blogs or my website!


On Apr 10 05:09 PM kagame wrote:

> Anyone have any insight as to why FMCN isnt trading at the $10 a
> share it is worth in SINA shares alone, not even to count the stub
> FMCN company that will remain in existence with 50% of the companies
> assets and a quarter to a third of its revenue?
>
> Even if there is a 25% risk of the merger not going through I would
> think that FMCN should trade at or near $10.

Five Cash-Rich Companies Worth a Look

FMCN/SINA is a nice merger arbitrage trade, but it wouldn't it be nicer to bump that figure up to an 85% return?

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