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.
Current Price –$11.2
Offer Price - $11.5 – $12.17
Upside – 8.5%
Expiration Date - 3rd of May, 2017 (expected)
Current Price –$6.2
Offer Price - $11
Upside – 80%
Expiration Date - TBD (likely H2 2017)
Global Eagle Entertainment provides satellite based entertainment and connectivity services for aviation and maritime industries (think wifi on the plane or Gogo). Company presentation is here. Its systems are installed in 750 aircraft currently and the company has contracts for further expansion. Revenues are growing at 30%+ annually, but ENT is still loss making and burning cash. I am no expert in technology investments and find these
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%.
Current Price – $6.36
Expected Cash-out – $6.55-$7.5
Upside – 18%
Expiration Date – expected by June 30, 2017
In the base case this trade has only $20 upside, but there is an embedded free option which might or might not materialize. It is definitely an interesting case from educational perspective.
Updates on recent investment ideas
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.
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.
Current Price –$0.105
Expected pay-off – $0.15+ (potentially $0.25+ or more)
Upside – at least 45%+
Expiration Date - TBD
This is just a quick note as I have not had a chance to look at this more in depth and should be able to do that next week. This special situation concerns nano-cap company (market cap only $10m), thus stock can be really volatile, so do your own due diligence before investing. I have a small long position in IMSCQ.
Current Price – $20.05
Expected Price – $19.20
Upside – 4%
Expiration timeframe – 1-2 weeks
This is a fairly simple and straightforward arbitrage idea. QQQX is a closed and fund that is mimicking Nasdaq 100 index and trying to juice up the returns by selling covered calls. Historically this fund has always traded at c. 5% discount to NAV – discount to NAV prevails mainly due to funds admin fees, which are levied on shareholders returns. You can see NAV vs share price
Current Price – C$7.99
Offer Price – C$8.0 – C$8.3
Upside – 4% (C$30 for odd lot holders)
Expiration Date – 14th of Feb 2017
This is a tiny opportunity in Canada. Currently the shares trade one cent below the lower limit and thus odd-lot holders are guaranteed that their shares will be purchased at least at the same price in one month. This is a free option on any potential share price appreciation in the meantime or tender being priced at the upper limit
Current Price –C$3.77
Offer Price - C$4
Upside – 6% (C$23 for odd lot holders)
Expiration Date - 20th of Jan 2017 (extended to 3rd of Feb, 2017)
Current Price –$0.55
Offer Price - $0.8
Upside – 50% ($250 for holders of less than 1000 shares)
Expiration Date - TBD
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.
Current Price –$5.29
Offer Price - $5.56 (depends on NAV)
Upside – 5%
Expiration Date - 9th of Jan 2017