Browsing Category: "Special Situations"
As you might have noticed, I often talk about special situation investing here at Fat Pitch Financials. However, I just realized that I don’t believe I’ve ever defined what I mean by this term.
What are special situations?
I first learned about special situations while reading Joel Greenblatt’s book, You Can Be a Stock Market Genius. Here’s how [...]
This evening I’m celebrating my homerun merger arbitrage hit with an ice cold Bud. My shares of Anheuser-Busch Companies (BUD) were cashed out this morning. I was expecting that I would be cashed out of this position rather soon ever since I saw last week that the Department of Justice cleared the merger with InBev (INBVF).
This morning the Special Situations Real [...]
As some of you might know, I’ve been playing the Constellation Energy Group (CEG) merger arbitrage opportunity. Berkshire Hathaway’s MidAmerican has offered to buy CEG shares for $26.50. The stock has bounced down as low as $15 and as high as $28.62.
I sold my original position in CEG, but last Friday I couldn’t resist buying [...]
The S&P 500 was down 4% today, but my merger arbitrage position in Constellation Energy Group (CEG) was up nicely. In fact, CEG shares climbed all the way up to the MidAmerican Energy Holdings offer price of $26.50. The stock was up on news that Berkshire Hathaway (BRKa) submitted its first regulatory filing to complete its [...]
I must admit today’s market activity struck fear in my heart, but for a very specific reason. Constellation Energy Group’s (CEG) stock took me for a wild ride today. Thankfully, as a value investor, I knew that I had to keep my fear in check in order to profit. Let me share with you my story [...]
It’s been a while since I’ve shared with you the details of a stock tender offer. Stock tender offers with an odd lot provision are particularly attractive for individual investors since they allow holders of less than 100 shares to avoid proration that often occurs when tender offers are oversubscribed. Therefore, if you own less [...]
For the past few months I’ve held shares of Jaclyn Inc. in the Special Situations Real Money Portfolio. Members of Fat Pitch Financials Contributor’s Corner have been tracking my research on this company since it first announced its desire to go private back in December of 2007.
Jaclyn proposed to go private by conducting a reverse split where 250 shares would become one [...]
I recently received an email that contained several good questions about stock tender offers from someone interested in joining Fat Pitch Financials Contributor’s Corner. I thought you might be interested in those questions and my answers to them.
When acquiring an odd-lot following the announcement of a tender offer, what must be done next to ensure participation in [...]
Concord Camera (LENS) released its 2007 10-K yesterday. Last week I calculated the net current asset value of Concord Camera, so I figured I should update my figures in the June 30, 2007 balance sheet. Here’s what I found:
Cash and Equivalents: $3,853,000
Restricted Cash: $6,200,000
Short-term Investments: $30,475,000
Accounts Receivable, net: $10,702,000
Inventories: $15,806,000
+Prepaid Expenses & Other: $1,401,000
= Total Current [...]
July has been a really busy month. I spent most of my time avoiding losing money and that was no easy feat in this market.
I closed July out with $12,044.13 in the Special Situations Real Money Port. Back in May, the account was worth $12,239.27. As you can see, I’ve lost a little bit of ground over [...]
