iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,471 Blog Posts

Merger Monday

TSN upped its bid for HSH to $63, making this takeover attempt one for the ages. MRK acquired IDIX for an absurd 240% premium and ADI bought HITT for a very rich premium. As long as interest rates are low, expect to see more of these types of deals, companies making acquisitions to fuel growth. The futures aren’t moving much, but I think this IDIX deal is a huge one for the biotech space.

Look for similar companies to get bid up in biotech, specifically those who treat hepatitis C. Doing a quick company profile search, I see ACHN, ENTA, ARRY, BLRX, CNAT, NNVC, MDGN, INO, GALT, ENZN, VRTX, SCYX, SCLN, RGLS all have hep c in their profiles. Look for some of them to make some massive moves to the upside today.

It’s also worth noting that Seth Klarman’s Baupost Group owned more than 30% of IDIX. Other biotech stocks in his reported holdings are THRX, KERX and KIN.

We are a bit over-stretched to the upside. I expect a minor pullback today, followed by more of the same frantic to the upside buying tomorrow. Either way, M&A is in full swing and the bears are eating their own feces now.

Oh, by the way, Carl ‘give me three seats on your goddamn board’ Icahn took a 9.4% stake in FDO.

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10 comments

  1. matt_bear

    he just wants to get inside to see if the books are cooked.

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  2. goose20

    This market is going to end ugly going forward by year end. But go ahead and roll dice hoping for extra gains.

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    • goose20

      The Russell 2000 is shaping up a perfect head and shoulders chart along with a over 19 forward pe which happens to be historical high and sell signal. Also at 84 pe as of right now.

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  3. surplusdroids

    If I remember correctly, the average of all bulge bracket analyst predictions for the SP 500 high for the year is 1950.

    For whatever that is worth. I expect a minor pullback as well.

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  4. OG

    FEYE moving again after I sold it on Friday…

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  5. matt_bear

    today is boring. as a paying customer for every service offered on iBC, i request a new Fly story.

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    • CrawPoppa

      ^Serious Q, hows that working out for you adding 2500 bucks in fees per year to your returns?

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      • matt_bear

        the twitter trade from back in december paid for a lifetime’s worth of the subscriptions.

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        • CrawPoppa

          That was a great call by Jeff.

          Guess my point is that– whether you happened to take that trade out of the dozens thrown out between the services each day, or that you, yourself, due to your own skill or whatever, not anyone else, bought and sold correctly?

          I never understand why pay for random picks when an individual is just as capable

          You dont think in a whole year you couldnt if nothing than just sheer blind luck buy a Twtr type play? (not saying Jeff didnt have skill there just that the odds in a bull mkt favor something liike that happenng sooner or later?

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