Tag Archives: Special situation



Analysis of Split-off Trading Strategies

Split-Offs proved to be very lucrative in generating low risk arbitrage returns.  Just last week yet another split-off (ECL/APY) closed successfully with $2,100 ‘riskless’ return for hedged trades (c. +11%), while at at the same time unhedged positions delivered $10,000 (c. +50%-70%) in a month. The difference in pay-offs is clearly very material; however, higher returns seemingly come with higher risks (exposure to share price fluctuations).

  

GSI Technology (GSIT) – Odd Lot Tender Offer – $20 Potential

Current Price – $6.50

Offer Price – $6.50 – $6.70

Upside – 3.1% or $20 for Odd Lot holders (if upper pricing is used)

Downside – $0

Expiration date – August 6, 2014

Odd Lot holders (less than 100 shares) are not subject to proration

SEC Filling

Trading Strategy:

Buy 99 shares of GSIT below $6.5 and tender all your shares before August 6, 2014.

Summary:

GSI Technology invites its stockholders to tender shares of its common stock, par value $0.001



United Development Funding IV (UDF) – Odd Lot Tender Offer – $89 Gain

Current Price – $19.6

Offer Price – $20.5

Upside – 4.6% or $89 for Odd Lot holders

Expiration date – July 2, 2014

Odd Lot holders (less than 100 shares) are not subject to proration

SEC Filling

Trading Strategy:

Buy 99 shares of UDF below $20.5 and tender all your shares before July 2, 2014.

Summary:

United Development Funding IV, a Maryland real estate investment trust, is offering to purchase for cash up to 1,707,317 common shares of beneficial interest, par value



Hancock Fabrics (HKFI) – Going Private Transaction – $200 Gain – Cancelled

Current Price – $1.0

Offer Price – $1.2

Upside – 20% or $200 for Odd Lot holders

Expiration date – not announced yet

SEC Filling

Trading Strategy:

Buy 999 shares of HKFI and wait for reverse-split after the shareholder meeting.

Summary:

After careful consideration, our Board of Directors has concluded that the costs associated with being a public reporting company in the U.S. are not justified by the benefits. The primary purpose of the going private transaction is to reduce the number



Global Sources (GSOL) – Odd Lot Tender Offer – $148 Gain

Current Price – $8.51

Offer Price – $10.00

Upside – 17.5% or $148 for Odd Lot holders

Expiration date – May 28, 2014

Odd Lot holders (less than 100 shares) are not subject to proration

SEC Filling

Summary:

Global Sources Ltd., a Bermuda company, is offering to purchase for cash up to 5,000,000 shares of its common shares.  On the terms and subject to the conditions of the Offer, Global Sources will pay $10.00 per share, net to the seller in cash.

The 5,000,000



New York REIT (NYRT) – Odd Lot Tender Offer – $20 Gain

Current Price – $10.55

Offer Price – $10.75

Upside – 1.9% or $20 for Odd Lot holders

Expiration date – May 12, 2014

Odd Lot holders (less than 100 shares) are not subject to proration

SEC Filling

Trading Strategy:

Buy 99 shares of NYRT below $10.75 and tender all your shares before May 12, 2014.

Summary:

New York REIT, Inc., a Maryland corporation that qualifies as a real estate investment trust for U.S. federal income tax purposes, invites our stockholders to tender



American Realty Capital Healthcare (HCT) – Odd Lot Tender Offer – $87 Gain

Current Price – $10.12

Offer Price – $11.00

Upside – 8.7% or $87 for Odd Lot holders

Expiration date – May 2, 2014

Odd Lot holders (less than 100 shares) are not subject to proration

SEC Filling

Trading Strategy:

Buy 99 shares of HCT below $11 and tender all your shares before May 2, 2014.

Summary:

American Realty Capital Healthcare Trust, Inc., invites our stockholders to tender up to 13,636,364 shares of our common stock, par value $0.01 per share, for



Steel Partners Holdings (SPLP) – Odd Lot Tender Offer – $79 Potential

Current Price – $16.70

Offer Price – $16.50 – $17.50

Upside – 4.8% or $79 for Odd Lot holders

Downside – 1.2% or -$20 for Odd Lot holders

Expiration date – April 23, 2014

Odd Lot holders (less than 100 shares) are not subject to proration

SEC Filling

Summary:

Steel Partners Holdings L.P., a Delaware limited partnership is offering to purchase for cash, up to $49 million in value of its common units, no par value, upon the terms and subject



Genpact (G) – Odd Lot Tender Offer – $69 Potential

Current Price – $17.30

Offer Price – $16.5 – $18.00

Upside – 4% or $69 for Odd Lot holders

Downside – 4.6% or -$79 for Odd Lot holders

Expiration date – April 2, 2014

Odd Lot holders (less than 100 shares) are not subject to proration

SEC Filling

Summary:

Genpact Limited, a Bermuda Company, invites our shareholders to tender up to $300 million in value of our common shares, par value $0.01 per share, for purchase by us at a price not



SunLink Health Systems – Odd Lot Tender Offer – $133 Gain

Current Price – $1.17

Offer Price – $1.5/share + $100

Upside – 28% or $33 for Odd Lot holders

Expiration date – Mar 12, 2013

Odd Lot holders (less than 100 shares) are not subject to proration. Had to be shareholder of record as of 31ts Jan 2013.

SEC Filling

Summary:

is offering to purchase all of its common shares held by holders of 99 or fewer shares who owned such shares as of the close of business on January 31, 2013