|This Trade Was Closed May 23, 2012|
I know I was hoping for $10 but the general market is making me stressed. I think I am going to close this trade, which has turned out well about $.30 before I get to my original target.
Original Trade Post:
I think the buyout rumors on DMD are more likely to be true than not. If I don’t get some news by the end of next week that indicates this is a lock, I might sell on fear that they will fill the gap to $7.00.
This is a pretty aggressive trade but I think the pre-merger arbitrage here is very interesting. In case you missed it, the scoop is that DMD (content spammers) are likely to be acquired by a private equity firm. Frankly they need the help and access to capital. BEcause they are on the verge of being profitable, I think this is exactly when a private equity firm would want to step in.
- The Ticker: DMD
- The Trade: Buy at $8.39
- Target Price: $10
- Trade Opened: May 4, 2012
- Trade Closed: May 23, 2012
Chart courtesy Finviz. Click to open in larger window.
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