I just finished a VBA macro which logs in, downloads, calculates and formats my positions from Scottrade. I open up my workbook, hit “ctrl+r” and out pops the current position summary you see here. I’ll post the code in due time.
Summary of Current Positions
- BRFS, GOL, SUZBY and TNE represent Brazilian ADR holdings.
- T, VZ and short NFLX are US stock picks.
- CB6RAC represents Skilled Healthcare (SKH) bonds maturing sometime in 2012 that yield ~13%. I purchased them prior to a gigantic lawsuit judgement in SKH’s favor.
- ORCH and SHMR are merger arbitrage positions that have closed or are about to. Note a lesson from ORCH. It’s a tender offer and I didn’t buy enough to make the $25 tender fee from Scottrade very worthwhile. To fix this, I can either buy more+tender or try to sell on the open market.
ID Acquired by Safran
- Cash deal for $1.1B
- Absolute spread: ~2.56%
- Close date: 7/31/11
- Annualized return: ~58%
There is regulatory uncertainty due to a Committee for Foreign Investment in the United States (CFIUS) investigation. CFIUS conducts a 30 day review, and then if necessary, follows up with a 45 day investigation. In ID’s case, CFIUS went ahead with the investigation on June 3. http://www.reuters.com/article/2011/06/03/l1identity-idUSL3E7H321P20110603?feedType=RSS&feedName=technologySector&rpc=43
I am led to believe that CFIUS reviews are usually perfunctory. ID has already sold some assets to make this deal work, so I can’t believe that CFIUS would now block it. http://biz.yahoo.com/e/110215/id8-k.html
ID/Safran was approved by CFIUS on July 19th, with expected closing 5 days forward from that. But not before the spread exploded, with ID dropping as low as $11.50/sh (whereas I bought at $11.69/sh). In retrospect, the risk/reward was pretty dubious, given how far ID could have plummeted if the deal hadn’t been approved. Although I made money, this was not a good idea (the exact opposite of the ADAM/EBIX deal haha).