Welcome to the Masterful but Limited issue of M&A Daily
Bitcoin is up 86% over the past year to $862 per BTC. Now, Bitcoin owners can spend online and offline wherever Visa (NYSE:V) debit cards are accepted using the new Shift Card connected to your Coinbase account.
Top Picks For 2017
So far in this series, I have disclosed the following top picks for 2017:
- Asset class
- Asset class short
- Closed-end fund
- Country market
- Credit card
Before year-end, I will discuss several other categories. Today, I offer my favorite master limited partnership/MLP for 2017: OCI (NYSE:OCIP). It offers an almost double-digit dividend. It operates a methanol and ammonia plant near Beaumont, Texas (we interrupt this newsletter with a public service announcement: don't drink methanol).
OCIP is a public subsidiary of OCI N.V. (OTCQX:OCINY). The parent is looking to buy the 20% that it does not already own. The subsidiary is worth owning. The deal is likely to close. The buyer's offers a reasonable currency with which to take the MLP private. The original proposed deal is for holders to get 0.52 OCI N.V. shares per OCIP.
Rite Aid (NYSE:RAD) reported quarterly results with revenues of $8.1 billion, net income of $0.01 per diluted share, adjusted net income of $0.02 per diluted share and adjusted EBITDA of 3.4 percent of revenues. The $0.52 arb spread offers a 32% IRR if the deal closes by March. More to come in future editions of M&A Daily.
Elsewhere on Seeking Alpha
- 17% Pop On Apple Supplier Deal
- Santa Arb
- All I Want For Christmas
- BATS Should Come Back With A Higher Offer
- MainSource Buys First Capital Bank Of Kentucky
- Will Buffett Buy Coke?
Sifting the World
Disclosure: I am/we are long HUM, STJ, RAD, BITCOIN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Chris DeMuth Jr and Andrew Walker are portfolio managers at Rangeley Capital. We invest with a margin of safety by buying securities at discounts to their intrinsic value and unlocking that value through corporate events. To maximize returns for our investors, we reserve the right to make investment decisions regarding any security without notification except where notification is required by law. This post may contain affiliate links, consistent with the disclosure in such links. We manage diversified portfolios with a multi-year time horizon. Positions disclosed in articles may vary in sizing, hedges, and place within the capital structure. Disclosed ideas are related to a specific price, value, and time. If any of these attributes change, then the position might change (and probably will).
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.