09/28/10
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Hostile Takeover Volume Is Up

If one subscribes to the view that corporate executives are better-informed about the short-term future of our economic performance, then the recent spate of hostile offers for public companies suggests that stock prices are too low.  Only the opportunity to improve future earnings via an inexpensive acquisition could motivate so many corporations to deal with…

09/28/10
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Southwest Airlines Buys Airtran

Low cost air travel provider Southwest Airlines is acquiring low cost air travel provider Airtran, which makes many consumers concerned that their air travel costs will rise. By positioning oneself to earn a profit from the completion of the transaction, an investor can make an investment that hedges the coming increase in ticket prices. Earlier…

07/22/10
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Recommended Reading

You Can Be A Stock Market Genius by Joel Greenblatt is such an informative book that I give away a copy at every presentation. Two other books worth borrowing from the library are The Black Swan by Nassim Nicholas Taleb and The Education of a Speculator by Victor Niederhoffer. In each case, the author presents…

07/22/10
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DynCorp International: SOLD

On April 12, 2010, DynCorp International (DCP) announced that Cerberus Capital would acquire it for $17.55, a 49% premium to the previous day’s closing price. Completion of the transaction was conditioned on approval by shareholders and antitrust authorities. Interestingly, the acquisition agreement allowed DCP to solicit higher offers for an additional 28 days. However, prospects…

06/30/10
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How to Invest In A Hedge fund

One of the most frequent questions I’ve heard is, “How do I make a hedge fund investment?”  As with any investment decision, the first step is selecting an attractive vehicle.  There are a number of hedge fund listing services; the database and analyst team that I respect most is at Morningstar. Other databases include Hedgeco…

06/30/10
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Identifying Event-Driven Investments

To build a list of potential event-driven investments, start with secondary research such as newsletters or newspapers. My favorite resource is Barron’s, particularly the Follow-Up reports and 13D Filings section. Two other useful resources are PR Newswire and Business Wire, which can be searched for recent announcements of specific types of value-creating events. By creating…