Seeking Alpha contributors give readers an early look at stocks that could be moving today in SA Stocks To Watch. In this discussion forum, you can ask questions regarding my ideas or discuss other ideas that appear on StW. So far, this is what I have offered:
Stocks To Watch Today: Jul. 9, 2014
If anyone tries out Chris DeMuth's CBS/CBSO share exchange, let us know how it goes. Chris, a systemic arbitrageur, has a track-record with these kinds of opportunities.
- You can exchange CBS for CBSO at a 7% discount on Wednesday.
- If you own fewer than 100 shares, you can avoid proration.
- CBSO received a favorable REIT ruling from the IRS for a conversion.
- CBSO can be lent out at a very high rate for added yield.
Stocks To Watch Today: Jul. 10, 2014
- GSIT announced a Dutch Tender Offer priced at $6.50-$6.70.
- At a cost of $6.50 per share, you can tender 99 shares at $6.70.
- Holders of fewer than 100 shares are not prorated.
Questcor Pharmaceuticals Inc (QCOR) - short - Chris DeMuth Jr.
- The arbitrage spread of over $7 equals an annualized return of over 50%.
- However, it is unclear whether the deal will close. Where is the amended proxy? It is currently almost a month late. Why?.
- There is over a 25% downside in the likely event that the deal breaks. Buyer could be concerned with the insurers' skepticism towards Acthar.
Any suggestions for other ideas that would be well suited for StW?
Disclosure: The author is short QCOR.
Additional disclosure: Chris DeMuth Jr is a portfolio manager at Rangeley Capital, a partnership that invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our partners, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.