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#51
06-06-2007, 12:48 PM
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Re: OCPI
[ QUOTE ]
Sweet, now I only wish I had bought more [img]/images/graemlins/smile.gif[/img] [/ QUOTE ] ditto, thanks though. can anyone tell me what happens next if you own the stock? is there a date this will be finalized by? thanks, jeff Also, thanks for CHTR also. 
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#52
06-06-2007, 01:22 PM
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Re: OCPI
Very impressive, thanks again SM. It's always great to learn something new and to make some bonus money while doing so.
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#53
06-06-2007, 02:45 PM
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Re: OCPI
[ QUOTE ]
[ QUOTE ] Sweet, now I only wish I had bought more [img]/images/graemlins/smile.gif[/img] [/ QUOTE ] ditto, thanks though. can anyone tell me what happens next if you own the stock? is there a date this will be finalized by? thanks, jeff Also, thanks for CHTR also. [/ QUOTE ] Deal will probably be done in September. I will be holding through then, its a good return for a fairly certain situation. The key is that OPLK has CLOSED on the Furakawa buy. THey are now half pregnant and own the 58%. The Board has come along...business sucks...so I am pretty sure no shareholders are going to be trying to muck up the deal by disputing the price. Overall it will 10% in 4 mos or so. And, as I said, its nice to have a major position up 6% today (in a terrible market) and steadily dribbling up between now and September. It allows me to reduce market exposure without going to cash. In terms of mechanics...you will wake up one day and it will be gone from your account. Your firm might charge you $25 or so for the reorg - or it maybe free, I dont know. In the meantime, you will get a proxy to vote for the deal. One benefit for me of holding is not paying commisions on the way out, which are not immaterial.
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#55
06-08-2007, 01:25 AM
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Re: OCPI
[ QUOTE ]
AH just missed this. Excellent thread. SM - how did you come across this idea in the first place? Why were you following these particular stocks so closely? [/ QUOTE ] Part of idea generation is reading a lot and always turning over rocks (which I don't really do anymore...it definitely hurts my returns). You have to be open minded and curious and keep stocks on your screen, even after you sell them. I spent a lot of time on OPLK and owned it (twice). Because OCPI was a comparable and had lots of cash, I looked at it as well. I sold OPLK many months ago, but I keep old names on my screen...so when the deal was announced I checked it out. I had a perspective on how OPLK felt about doing deals and how committed they might or might not be to a deal. I knew they had waited a long time to pull the trigger. The original exposure to OPLK came like many of my ideas these days...from a good friend in the hedge business who covers that stock. My conviction came from having seen how M&A gets done in situations where there is a majority holder taking out a minority. I always say that the most important skill in stock picking in pattern recognition. I will take it over everthing else.
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#56
06-08-2007, 01:31 AM
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Re: OCPI
This might be the kind of donk question everyone else was afraid to ask at the beginning, but with OCPI trading at 1.57 and the deal done (or perhaps virtually done) at 1.65, might there still be a bit of value in it now? Certainly better than time value of money, esp. in this market, it would seem.
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#57
06-08-2007, 01:48 AM
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Re: OCPI
[ QUOTE ]
This might be the kind of donk question everyone else was afraid to ask at the beginning, but with OCPI trading at 1.57 and the deal done (or perhaps virtually done) at 1.65, might there still be a bit of value in it now? Certainly better than time value of money, esp. in this market, it would seem. [/ QUOTE ] I think its a great arb. Market is not live, but you will probably pay $1.58, not $1.57 unless someone will hit you on the bid (I did not see the bid/ask at the close but i assume that was it). in many ways its a better trade now than it was before. but no fun for guys who like homeruns. This is like a single up the middle.
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