017 Stock Market thread
03-03-2017, 11:35 PM
Quote: (01-27-2017 05:27 PM)Mr. Accuride Wrote:
Rare opportunity for the Rite Aid (RAD) buyout.
Currently priced at $6.93, expected to be bought out by Walgreens at $9.
If the deal fall through, you can imagine it dropping to about $5. If it goes through, you get $9.
It's a roughly 50/50 proposition for something that is more than 50% likely to go through. Trump just added a new FTC chairperson, and the one person expected to block the deal (Ramirez) will resign on Feb. 10th. When she does so, then Trump's FTC will most likely allow the deal to pass. The questions are 1) will Walgreens extend the deal or just go through with it without the FTC's blessing (likely) or just abandon the deal (unlikely), and 2) will Ramirez really kill the deal before resigning (unlikely).
Not a 100% thing, but these are the advantageous coin flips that you pray to find if you really want to gamble in the stock market. Size your bet accordingly.
Note that I am not a financial advisor and this shouldn't be considered sound financial advice; I just like advantageous gambling.
It didn't go through but had I put a put option on it I would have been rich.