Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] GAN - strange chart pattern
Date: Fri, 6 Sep 2002 22:05:16 -0400
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one of my personal rules is to always sell immediately upon, or very shortly after, any buyout offer of any kind. Doesn't matter if it is for cash, stock, or some combo. For those deals that fall apart, they almost always gap down at least to the level where they traded prior to the acquisition offer. In the case of FDCC, it was trending down immediately before the offer, then trended down during the time between the offer, and the offer falling apart. Two very good signals to take what you got and get out while you can. Under the best of circumstances (all cash offer, so stock trades flat for months just under the amount of the cash price offer), you have capital tied up. If it happened close to the end of your tax year, you might want to wait until the new year to postpone the taxes you will owe (assuming it will be a capital gain). Or if you are close to owning it for a year, you might want to wait to turn it into a long term capital gain instead of short term (again assuming it will be a profit). But outside of tax related issues, I have not normally found a reason to continue owning after an acquisition announcement. For the small additional value you may gain, the loss of use of the capital, and the risk you take that the deal falls apart are just too great for me, and I prefer to leave that to the arbitrage players. When the acquisition is for stock, or part stock with cash, you then need to evaluate the quality of the stock chart of the acquiring company. If it's not one you eventually want to own, that is all the reason to look for the exit. - ----- Original Message ----- From: "Ian" <ianstm@shaw.ca> To: <canslim@lists.xmission.com> Sent: Friday, September 06, 2002 4:38 PM Subject: Re: [CANSLIM] GAN - strange chart pattern Also see FDCC :) - ----- Original Message ----- From: Katherine Malm <kmalm@earthlink.net> To: <canslim@lists.xmission.com> Sent: Friday, September 06, 2002 12:18 PM Subject: Re: [CANSLIM] GAN - strange chart pattern > Hi David, > > Here are some examples of the chart pattern when a stock is to be acquired > for cash: > > http://WallStreet-LLC.com/canslim/PZL090602.jpg > http://WallStreet-LLC.com/canslim/GAN090602.jpg > http://WallStreet-LLC.com/canslim/USLB090602.jpg > http://WallStreet-LLC.com/canslim/MDBK090602.jpg > > Katherine > > ----- Original Message ----- > From: "Lin Wells" <linwells1@charter.net> > To: <canslim@lists.xmission.com> > Sent: Friday, September 06, 2002 1:26 PM > Subject: RE: [CANSLIM] GAN - strange chart pattern > > > | > | Berkshire Hathaway has signed a deal to purchase it for $60 a share > | > | Lin > | > | -----Original Message----- > | From: owner-canslim@lists.xmission.com > | [mailto:owner-canslim@lists.xmission.com] On Behalf Of david rossing > | Sent: Friday, September 06, 2002 1:21 PM > | To: canslim@lists.xmission.com > | Subject: [CANSLIM] GAN - strange chart pattern > | > | I'm curious about thoughts on the chart for GAN. It had a decent rise, > | then what looked to be forming a cup. On the right side, about halfway > | up, there's a rise on really high volume, then it turns into a 9 week > | flat base with a range of about 0.5 (<1% of the price). Is this a > | chart that shows a stock to avoid, or wait and see? Also, I'm > | wondering what the explanation of buying and selling is that would form > | a chart like this? (Similar to the explanation someone gave about why > | a normal c/h forms) Thanks. > | > | Dave Rossing > | > | __________________________________________________ > | Do You Yahoo!? > | Yahoo! Finance - Get real-time stock quotes > | http://finance.yahoo.com > | > | - > | -To subscribe/unsubscribe, email "majordomo@xmission.com" > | -In the email body, write "subscribe canslim" or > | -"unsubscribe canslim". Do not use quotes in your email. > | > | > | > | - > | -To subscribe/unsubscribe, email "majordomo@xmission.com" > | -In the email body, write "subscribe canslim" or > | -"unsubscribe canslim". Do not use quotes in your email. > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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