Buyout

[KellosJ]

What is the proper position if you know a buyout is imminent?

[Goods]

From what I've seen, stocks jump almost instantly on credible rumors of buyouts and then again on the actual announcement. Problem is, the price set for the buy is usually where it opens the next day. Where it goes afterward is anyone's guess. The price of the buyer's stock reacts depending on what public opinion is of the purchase and if they paid a fair price. It's a crapshoot.

If you know of something in the works, by all means share with the class!

[KellosJ]

Originally Posted by Goods

From what I've seen, stocks jump almost instantly on credible rumors of buyouts and then again on the actual announcement. Problem is, the price set for the buy is usually where it opens the next day. Where it goes afterward is anyone's guess. The price of the buyer's stock reacts depending on what public opinion is of the purchase and if they paid a fair price. It's a crapshoot.

If you know of something in the works, by all means share with the class!

Just keeping an eye on these ones:

ARDNA - this company is solid but stale...they should be more aggressive at this point but they are just sitting on their hands
FCGI - They just acquired a software company in a completely different vertical (life sciences)...they are now applying for ISO's and it just smells like they want to make themselves look more intriguing than they actually are

[Goods]

FCGI chart looks promising as it's crossed and stayed above it's 50 day SMA, starting to trend up. But they've missed earnings the past two quarters, cutting their stock 40% off Dec '06 highs.
Looks like people may be cautiously buying in with earnings out Aug 2nd. It'll get killed if it misses again.

ARDNA's volume is too light to judge. I don't know the company at all. Keep an eye out for any rumors!