ayo888
Introduction And Thesis
Not long after I first rated Cross Country Healthcare (NASDAQ:CCRN) a buy, the company announced it was being acquired by Aya Healthcare at a price of $18.61 per share. The stock promptly shot up and
Cross Country Healthcare: The FTC's Second Request Has Created An Arbitrage Opportunity
Summary
- Cross Country Healthcare stock has gone up on news that the company is being acquired by Aya Healthcare for $18.61 a share.
- The stock recently fell below $15 due to an FTC Second Request, delaying the acquisition completion to the second half of 2025.
- Investors could gain 25% if the deal proceeds, but face significant losses if it fails.
- I rate CCRN stock a Sell due to the FTC's stance on promoting competition in the healthcare industry.
I am a software developer by trade who focuses on finding value in the market wherever it may lie. I'm looking mainly in small caps for opportunities that provide asymmetric upside. I'm also interested in generating income through my investments, which leads me to look at high dividend yields that are sustainable. Things I look for in a business include insider buying and high insider ownership, a long history of free cash flow growth, substantial catalysts that can lead to a turnaround or a sufficiently high book value. I am open to plays such as high yield debt and selling puts, but am not interested in taking short positions. My biggest investment influences include Warren Buffett and Peter Lynch. My preferred holding period is forever. I am comfortable with matching market returns during bull runs and generating superior returns as the market falls. I have a Bachelor of Science with a major in Economics and Finance.
Analyst’s Disclosure:I/we have a beneficial short position in the shares of CCRN either through stock ownership, options, or other derivatives. 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.
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