What the heck kind of buy program was that? Where did it come from? You have to admit it was based on nothing other than rumor and a belief that the takeovers are making it real hard to stay short.
We are in the rumor phase, where being short has become extremely dangerous, as anyone who didn't cover on the breakdown of Altera (ALTR) can attest.
I know it seems totally frothy, but the fact is things just keep working out for those who buy stocks that can be taken over or will take over companies, with the exception of Royal Dutch (RDS.A)
I think the key thing here is to recognize that playing specs in the oil patch or tech are real bad ways to go. You play in tech and you are going to get earnings real soon. You play in oil and it breaks down to $46 and all of that secondary stock sloshing around comes right back to the table.
I know, it seems so easy; you have to play. I am, again, just warning you, if you cannot take the pain of an earnings disappointment, then sell the techs and oils that you bought for takeover purposes.
Lightning can strike. But you have to be ready if it doesn't because, even in this merger-happy market, bad stocks won't get bids that are worthwhile unless you have really dumb acquirers, like the good overpaying folks at Royal Dutch.
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