Login to see active ideas

Inactive ideas



PennTex Midstream (PTXP) – Acquisition Target – 50% upside

Current Price – $15

Expected Buyout – $23

Upside – 50%

Expiration Date – TBD (expected in H1 2017)

Penntex Midstream is likely to be fully acquired by ETP, which already owns 65% of the company. This is similar to OCI/OCIP transaction that was posted on the site earlier as well as a number of other consolidations in the MLP space (TRP/CPPL, TLLP/QEPM) whereby general partner which owns majority of MLP buys out the remaining limited partner units.



Tangoe (TNGO) – Forced Selling + Merger Arbitrage – 25% upside

Current Price – $5.13

Expected Buyout – $6.5

Upside – 25%

Expiration Date – TBD

This is a fairly straightforward situation. Tangoe received non-binding proposals to be acquired by Marlin Equity Partners (10% shareholder) at $7.5/share and by Clearlake Capital Group and Vector Capital Management (jointly 25% shareholders) at $7/share. Following further discussions Marlin later reduced their proposal to $6.5/share. Clearlake/Vector have not issued any further updates with regards to their offer so it is not clear whether their proposal still stands.



OCI Partners (OCIP) – Merger Arbitrage – 5.3% upside

Current Price –$7.5

Offer Price - $7.9

Upside – 5.3%

Expiration Date - TBD (expected Q1 2017)

This is a merger arbitrage situation, where current acquisition proposal understates the value of the company and the risk of deal getting cancelled is low. The spread is at 5.3%.



Zweig Fund (ZF) – Merger Arbitrage – 7% upside

Current Price – $11.16

Expected Buyout – $11.85

Upside – 7%

Expiration Date – 31st of March, 2017

This is a relatively straightforward situation and I will keep the write-up light as I am travelling today (happy to expand more in the comments section later).

Zweig Fund (ZF) and Virtus Total Return Fund (DCA) will be merged by the end of March. Both closed end funds are administered by the same asset manager and shareholders have already agreed to the merger.



Syngenta (SYT) – Merger Arbitrage – 17% upside

Current Price –$79.34

Offer Price - $93

Upside – 17.5%

Expiration Date - TBD (likely in H1 2017)

Let me start by saying that this is a large cap transaction and the deal is widely followed and analysed – I do not have any superior insights with regards to the likelihood of the transaction going through so my opinion is as good as anybody’s else. However, I believe this opportunity is quite interesting, spread is large (17%) and therefore worth flagging.



Transalta (TA-PD.TO) – Exchange Offer – 2.7% upside

Arbitrage Trade

Upside – 2.7%

Expiration Date - Q1 2017

This idea was suggested to me by one reader of the site – it’s an arbitrage trade in Canadian preferred shares. Upside is tiny, but the deal itself is interesting – so I decided to write it up. I have a small position mainly to track how this transaction plays out.

   

Coats Group (COA.LN) – Forced Selling – 10% upside

This special situation results from recent forced selling due to delisting from Australia and New Zealand exchanges.

Long investors in Coats Group (listed in London Stock Exchange) stand to make 10%+ if prices revert to back to previous 30p/share vs current GBP 26p/share.



Carmike Cinemas (CKEC) – Bet on higher takeover price – 300%+ upside with options

Investment thesis – bet on higher takeover price from AMC as CKEC shareholder will reject the current offer due to price being too low

Carmike Cinemas (4th largest movie theater company in US) is in the process of being bought by AMC Entertainment (2nd largest). This M&A would create the largest movie theater chain in US with obvious benefits and large synergies for AMC.

Carmike Cinemas trades at $30.47 vs.  current takeover price of $30.00.