m22au's journal

Sprint - Softbank deal details:

http://www.elitetrader.com/vb/showthread.php?s=&postid=3652185#post3652185

I am intrigued by the analysis here, regarding a quasi-merger arbitrage opportunity:
http://seekingalpha.com/article/926991-sprint-s-unreasonable-post-deal-valuation

Obviously with any merger arbitrage, there is the chance the deal is not finalized.

That risk can be partially hedged using options.

The basis thesis is contained in the first paragraph of the above article:

"Softbank will tender for 55% of Sprint's outstanding shares at $7.30/share and will also buy newly issued shares of Sprint at $5.25/share. This deal implies a weighted average cost of $6.20/share for Softbank"

From the Sprint Nextel announcement,
"The companies expect the closing of the merger transaction to occur in mid-2013. "

Maybe something I will keep on the radar, and I might consider buying some S early next year, especially if the share price gets a bit closer to the $5.25 level.
 
Quote from m22au:

Alternatively, Navistar NAV

S&P rated CCC+ October 2014 9.34%
S&P rated CCC+ November 2021 9.41%

http://cxa.gtm.idmanagedsolutions.com/finra/bondcenter/SearchResult.aspx?q=nav

stock at new 52-week low $19.29, down 6%
market cap $1.29 billion
More...

24 October

NAV sells 10.666 million shares

http://finance.yahoo.com/news/navistar-announces-pricing-public-offering-000200619.html

LISLE, Ill., Oct. 24, 2012 /PRNewswire/ -- Navistar International Corporation (NAV) today announced the pricing of a public offering of 10,666,666 shares of common stock at a price of $18.75 per share. Closing of the offering is expected to occur on October 30, 2012, subject to customary closing conditions. In addition, the company will grant the underwriters a 30-day option to purchase up to 1,600,000 shares of common stock.

http://www.sec.gov/Archives/edgar/data/808450/000080845012000041/nav10qq37312012.htm

As of August 31, 2012, the number of shares outstanding of the registrant’s common stock was 68,588,952, net of treasury shares.
 
Quote from m22au:


Maybe something I will keep on the radar, and I might consider buying some S early next year, especially if the share price gets a bit closer to the $5.25 level.
More...

Alternative view (ie, Sprint a bad investment) put forward here:

seekingalpha.com/article/950031-did-you-escape-sprint-in-time
 
STSI 10-Q
as at 30 September 2012
http://www.sec.gov/Archives/edgar/data/776008/000114420412060932/v326107_10q.htm

"The Company expects to have sufficient funding to sustain operations into the first quarter 2013. Depending upon sales levels, market conditions and the price of its common stock, it may be necessary for the Company to seek additional funds. There can be no assurance that the Company will be successful in obtaining such funding at commercially reasonable terms."

See also:

http://www.thestreet.com/story/1176...-admits-legal-defeat-warns-short-on-cash.html

http://seekingalpha.com/currents/post/658131
http://seekingalpha.com/currents/post/658161

Press release:
http://seekingalpha.com/news-articl...ical-trial-relating-to-anatabloc-facial-creme

****

Short STSI calls.
 
Quote from Daal:

http://www.valor.com.br/empresas/29...preco-alvo-de-eletrobras-pnb-de-r-29-para-r-1

Barclays reduces PT of Eletrobras common and preferred to $1. Says company might dillute stock by 36%

I might put this on in the garbage index
More...

Thanks for that Daal. I believe the price target is actually 1 BRL, or approx 0.48 USD per ADR:

http://www.reuters.com/article/2012/11/21/eletrobras-shares-idUSL1E8ML76520121121

"Because of lower revenue, Eletrobras shares could fall another 90 percent to 1 real, the Barclays analysts' price target for the next 12 months. Their previous target was for the stock to rise to 29 reais."

via Google translate, the Valor.com article says:

"Barclays said the company may resort to an equity offering to raise about 8 billion (BRL) to 10 billion (BRL) in 2013, resulting in a 36% dilution in earnings per share of the company. "

****

Current market cap according to Bloomberg is 9.42 billion BRL.

http://www.bloomberg.com/quote/ELET3:BZ
1.087 billion ordinary shares * 6.75 BRL = 7.337 billion BRL

http://www.bloomberg.com/quote/ELET6:BZ
265.44 million preference shares * 7.84 BRL = 2.081 billion BRL
 
According to Wikipedia,
http://en.wikipedia.org/wiki/Bovespa#Hours

The Bovespa exchange has a pre-market session from 09:45am to 10:00am, a normal trading session from 10:00am to 5:00pm and a post-market session from 5:30pm to 7:00pm weekdays and holidays declared by the Exchange in advance.

So that is

6.45am to 7am (New York) pre-market
7am to 2pm (New York) regular hours
2.30pm to 4pm (New York) after hours
 
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