Monday, December 19, 2011

BuyOut Speculation

In my attempt to double 10k in the stock market in less than a year, I read, research and experiment as much as i possibly can to get an edge. Of course, the more research you do, the more you find out. For example;

In July of this year, word was that GeoEye was in preliminary talks about a buyout, at the time the stock price was $35. It is now $22.30. If a buyout seemed attractive in July, it only stands to reason that now, at $22.30, it would be even more attractive. 

Also, a couple of days ago I wrote that an insider (Feinbeg), recently purchased more than 400,000 shares of the company's stock (actually nearly $10 million dollars worth).  It seems that the possibility of a buyout is very real.  I'd love to have a piece of that action.  A buyout at 30 would be $5 less than the stock price was in July.  For me, that would be a profit of more than 50%.  I am in at 19.03.  Hey, I can dream, cant I?

Start date: 12/12/2011
Starting balance: $10k
Current balance: $11,649
Gain: 16%  

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