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Richard Humphrey

Richard Humphrey
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  • Exceed Company, Ltd.: A Merger Deal With A Likelihood Of Failing - Limited Upside But Significant Potential Downside [View article]
    New filing!

    Among other things, Mr. Ding Dong Dong "will bear primary responsibility of the Company’s offshore operations, including its dealings with regulatory authorities."

    Sounds about right.
    May 19, 2015. 04:28 PM | Likes Like |Link to Comment
  • Capitol Acquisition Corp. II And The Merger Extension Vote [View article]
    Extension approved. http://yhoo.it/1JLGgW6
    May 14, 2015. 05:49 PM | 1 Like Like |Link to Comment
  • Capitol Acquisition Corp. II And The Merger Extension Vote [View article]
    Is the redemption value of the common shares guaranteed to be $10 or could it be less? And if so, any ballpark idea how much less? I've never actually participated in a SPAC redemption.

    I like the risk/reward here in the common. ~$0.50 downside with potentially $1.50+ upside. It's also interesting to see the warrants hovering around $2.00/sh. I'd expect them to be down a bit more if the deal were in doubt given they would expire worthless.
    May 12, 2015. 03:37 PM | Likes Like |Link to Comment
  • GCVRZ Forum [View instapost]
    Apparently some rather big players reevaluating positions yesterday - ~25mm CVRs traded hands in a few blocks shortly after the close @ $0.63.
    May 6, 2015. 10:18 AM | Likes Like |Link to Comment
  • Exceed Company, Ltd.: A Merger Deal With A Likelihood Of Failing - Limited Upside But Significant Potential Downside [View article]
    The absurdity continues!

    Delisted. Now trading OTC under EDSFF. Last SEC filing 12/29/2014.
    Apr 30, 2015. 02:35 PM | Likes Like |Link to Comment
  • Levy Acquisition Corp.: A Hot Taco At A Not So Loco Valuation [View article]
    Thanks for the great article!

    Another one to put on the radar: Capitol Acquisition Corp II, ticker CLACU, CLAC, CLACW.

    The market seems to like their planned acquisition of Lindblad Expeditions. Investor presentation here:

    http://bit.ly/1al0BWi
    Apr 8, 2015. 10:05 AM | 2 Likes Like |Link to Comment
  • GCVRZ Forum [View instapost]
    Two blocks traded:

    426,000 @ $0.670 [11:54:03]
    2,423,810 @ $0.670 [12:34:43]
    Mar 30, 2015. 04:36 PM | 2 Likes Like |Link to Comment
  • Exceed Company, Ltd.: A Merger Deal With A Likelihood Of Failing - Limited Upside But Significant Potential Downside [View article]
    "SEC charges eight insiders over 'going private' transactions"
    http://yhoo.it/1FHaQ4w

    CEO Lin, along with others in unrelated companies, get a slap on the wrist (less than $100k each) fine due to non-disclosure of material changes to going private transactions. Anybody have any idea what these changes were? It's baffling that this has remained dark so long. Any new information out there?
    Mar 25, 2015. 03:17 PM | Likes Like |Link to Comment
  • Merger Arbitrage Forum (Though Any Arb Can Be Discussed) [View instapost]
    Another SPAC similar to the QTET situation IPOed earlier this month:

    Barington/Hilco Acquisition Co.
    BHACU - units
    BHAC - common
    BHACW - warrants
    BHACR - rights

    Prospectus: http://1.usa.gov/1BCuEyy
    Mar 19, 2015. 01:45 PM | Likes Like |Link to Comment
  • Merger Arbitrage Forum (Though Any Arb Can Be Discussed) [View instapost]
    Good to know!

    I also was not aware of this feature. I guess I assumed it was an upvote/downvote arrow.
    Mar 9, 2015. 04:22 PM | Likes Like |Link to Comment
  • Merger Arbitrage Forum (Though Any Arb Can Be Discussed) [View instapost]
    There's an opportunity in a newly listed acquisition corporation - CB Pharma Acquisition Corp. There's a few different moving parts:

    CNLM: Common
    CNLMW: Warrant to buy 1/2 share at 11.50 upon a successful acquisition
    CNLMR: Right to purchase 1/10 share of common upon a successful acquisition
    CNLMU: Unit consisting of 1 common, 1 warrant, 1 right

    The company is led by the CEO of Cornonado Biosciences (CNDO) and two others from the same company. They have ~18 months to acquire a company with the $40mm they raised in the blank check IPO.

    I'm interested in the rights. The rights are currently trading at $0.30. This equates to purchasing the common at $3.00 (Common currently around $9.75 and likely to remain near $10 until deal details emerge). The main risk is management being unsuccessful in their effort to find a suitable acquisition - in which case the rights will expire worthless.

    I encourage you to read through their filings. Some items of interest:

    -Due to agreements of initial shareholders, directors, and officers only 1.4mm shares of the 4mm shares offered are needed to vote in favor for a successful acquisition.

    -Any group holding >30% of voting shares will be unable to participate in cash liquidation for shares over the 30% threshold

    -Management is ineligible to participate in cash option for shares in the event of unsuccessful acquisition

    There are a number of different ways one could trade this - buy rights and sell after price appreciation, conversion of the rights into common, buy rights/short sell common and convert, etc.

    This is a situation very similar to Quartet Merger Corp that was written about on SA last year.
    Jan 13, 2015. 02:45 PM | 1 Like Like |Link to Comment
  • GCVRZ Forum [View instapost]
    I wouldn't read too much into 5c-10c fluctuations day to day. The market is thin enough that someone sending a sloppy order to buy $50k worth could move it that much.
    Dec 30, 2014. 05:38 PM | Likes Like |Link to Comment
  • Pairs Forum [View instapost]
    Nuveen announced today a plan to convert a couple of their closed end funds, CTF and CFD, into ETFs. They currently trade at large discounts to their net asset values (though it has decreased with the news of the planned conversion). If approved it's expected they will trade in line with their NAVs.

    http://yhoo.it/1w650ze

    I'm looking at CFD long against a basket of commodities or another broad commodity ETF such as DBC.

    Or, if one thinks commodities are due for bounce simply going long CFD provides exposure at a discount (assuming conversion to an ETF).
    Dec 19, 2014. 10:48 AM | 3 Likes Like |Link to Comment
  • Russia, Gold, Oil, And Interest Rate Extremes [View article]
    DWTI is another one worth a look.

    One thing I've wondered about for awhile: Do the options accurately reflect the way leveraged ETFs' prices are path dependent?

    Consider a 3x ETF that has gone parabolic due to its underlying index moving in one direction for multiple consecutive days. As the ETF's price goes higher each % move in the underlying corresponds to a larger and larger $ move in the ETF. Eventually it gets to a point where even a minor reversal of the underlying will cause the ETF to give back a large chunk of the previous move.

    It seems like this would require a pricing model quite a bit different than for other more "linear" products. Options market makers are generally a smart bunch, and I'm sure they wouldn't make markets in this stuff if they were losing money doing it. I just wonder if sometimes there might be an edge in buying out of the money puts if one times it right.
    Dec 17, 2014. 03:18 PM | 2 Likes Like |Link to Comment
  • Whiting USA Trust Is Comically Overvalued And Should Get Cut In Half [View article]
    What will happen to the Jun 15 $1.00 puts? Assuming the trust will dissolve by that point and there will be nothing to deliver, will they just settle in cash? Seems to be an opportunity there.
    Nov 10, 2014. 09:42 AM | Likes Like |Link to Comment
COMMENTS STATS
53 Comments
6 Likes