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KJP712
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Trade in my own account and owner of KJP Enterprises.Also Trade stocks for Family and friends.
  • Sarepta Will Rise Again 10 comments
    Nov 12, 2013 10:24 PM | about stocks: SRPT

    A Little over thirteen months ago, I had one of my best days in my Stock trading career.On Wednesday October 3rd 2012 Sarepta Therapeutics - SRPT - went up 30 dollars in one session.Starting in the pre-market the stock continued to climb all day.I sold right around 44 at 3:53 p.m. to cap a great day for the old AVI BioPharma - AVII -.I had held this stock for about two years often wondering if it would ever move upwards.That day held so much promise of the future direction for the potential cure of muscular dystrophy.One could see the hope that this terrible disease may be finally controlled.I last traded this stock in 2012,but early in the morning on November 13 I will place an order to buy Sarepta once again.I believe the news will be a temporary setback in the near term with the long view still intact.This is not a buy order about hope as much as a future trade on a small company with big aspirations.These companies are a big reason why I trade stocks in the first place.If you do not dream a little you are not alive much.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in SRPT over the next 72 hours.

    Stocks: SRPT
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  • drew111
    , contributor
    Comments (447) | Send Message
     
    KJP, buy the warrants (SRPTW) if you want a position in the stock. At one point yesterday, you could have bought $13 worth of stock for under $12. That is if you bought the warrants and immediately exercised them. The gap has been reduced since, but still worth exploiting in my opinion. The math isn't immediately apparent because of a previous reverse stock split(1 for 6) and each warrant gives rights for .4 share of stock. I may play arbitrage on this one during a slow news period later this year. I believe I would have to wait for the trade to settle before I could exercise. It would just be too risky right now.
    13 Nov 2013, 09:30 AM Reply Like
  • KJP712
    , contributor
    Comments (452) | Send Message
     
    Author’s reply » I bought at 12.55. Going to look for a quick bounce on obvious panic selling yesterday.Looking at SRPTW at this moment.Thanks for the tip!
    13 Nov 2013, 11:27 AM Reply Like
  • drew111
    , contributor
    Comments (447) | Send Message
     
    Tips are for waiters and cab drivers. lol After permanently converting to value investing, I look for the cheap stocks and low risk arbitrages. The price action drew my attention to the name and I noticed that they had warrants when the autofill function on the yahoo finance search box showed me the SRPTW ticker on the drop list. I looked at them for a possible arbitrage under the scenario I mentioned above and then realized that I would probably have to wait until the trade settled before exercising and thereby running the risk of the gap becoming nonexistent or worse yet having the gap flip before the warrants were exercised. No sense not telling someone else about the opportunity if they are looking to be long the name and not arb it. You are more than welcome, sir.
    13 Nov 2013, 12:13 PM Reply Like
  • drew111
    , contributor
    Comments (447) | Send Message
     
    $SRPTW ended down another 25%, closed at 30 cents after opening at 40 cents. I may be arbing this one very soon! lol Margin of safety getting bigger.
    13 Nov 2013, 07:35 PM Reply Like
  • KJP712
    , contributor
    Comments (452) | Send Message
     
    Author’s reply » SRPTW is looking better by the moment.I will jump in tomorrow in the A.M. at that price.
    13 Nov 2013, 08:45 PM Reply Like
  • drew111
    , contributor
    Comments (447) | Send Message
     
    Before commission 11.81 buys you 14.11 in stock.... what in the hell am I missing here? lol Haven't found anything that requires a certain date be reached etc. Can be exercised at buyers option as far as I can tell. What's keeping some of the big guys from buying and exercising, dump shares, repeat? If you have a wide enough gap in valuations of the two, it is essentially a riskless transaction with a 15% + upside.

     

    http://bit.ly/1ig6qUN;highlight=
    15 Nov 2013, 11:01 AM Reply Like
  • drew111
    , contributor
    Comments (447) | Send Message
     
    Well here goes nothing, now long $SRPTW as arb play.
    15 Nov 2013, 11:41 AM Reply Like
  • drew111
    , contributor
    Comments (447) | Send Message
     
    I contacted my broker(Fidelity) to get information on costs and requirements to exercise these. Along with the normal boiler plate warnings they informed me that each warrant carried a right to purchase 0.67 share. If so the cost at $0.45 a warrant works out to be in the low $11s. Obviously this is a better deal! I have emailed investor relations at Sarepta for clarification.
    15 Nov 2013, 01:51 PM Reply Like
  • drew111
    , contributor
    Comments (447) | Send Message
     
    And I found the catch... it's .067. I didn't account for 1:6 split on the warrants. Doh! .30 a warrant a good price, .45 not so much. I feel stupid and will recuse myself from any further discussion of Sarepta. lol
    15 Nov 2013, 02:20 PM Reply Like
  • KJP712
    , contributor
    Comments (452) | Send Message
     
    Author’s reply » This trade has been a winner so far.Came in at 12.55 now at 15.63.Should go back into the 20's by year-end.Enjoy!
    24 Nov 2013, 01:05 PM Reply Like
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