I bought Yahoo (yhoo) a week or two ago for $18.95. Should I sell now or wait until after any acqusition?
Answers: Sell now. If the acquisition fails, you'd loose your nice
28.38/18.95 => 49.76%. If the acquisition goes through, the gain will be small at most from here. Why take the risk for a small possible gain and a high loss?
I would suggest you consider selling YHOO, simply from a risk standpoint. If the deal goes through, you gain a few more percentage points, but, if it fails, you would lose a significant amount of your gains real quick. It's a decision you will have to make, but know that you are taking on extra risk by holding until the acquisition takes place. Just my opinion, I hope it helped.
Best of luck!
Brendan Prewitt
i totally agree with ncyglic
the gain even after the merger goes through would be 10-15% tops... and if it doesn't go through you lose 45-50% instantly.
I'd sell at least half if I were you.
probably too late now, monday might be lower. still, sell some to lock in profit.
Why buy a stock with a high short ratio and a dip in place?
Answers: Basically, a stock with a high short interest, and a dramatic sell-off is a great play in only one scenario: good news is announced by or about the company. When good news is announced, investors begin to buy the stock, pushing the price higher. This puts pressure on the short sellers, and they buy back in as well, scrambling to cover their position before they lose their profits. As shorts cover, the price is pushed up, and if there is a high number of shorts, the price can be pushed up rather dramatically. This is very significant in names that have been on a long downtrend, as a lot of shorts get on for the ride down, and by the time the company or another firm announces news regarding the company, there is a very high short interest, and can provide for very explosive returns. However, these both require that you pay attention to the stock, and get in when positive news is announced. If you get in too early, the shorts will continue to bring the stock lower, and your benefit will be erased. This is why averaging-down is a great tool, especially when you initiate a position near the bottom, as it allows you to build your position as the stock declines, which lowers your cost basis and boosts your potential return. Just some thoughts, I hope they helped.
Best of luck!
Brendan Prewitt
There's no way to answer that question without more information. It depends upon the company.
How can one trade within rights on the floor of an exchange?
Is it profitable to trade right issues rather than making payments for them? At what point does one start trading contained by stock?Answers: not sure what you're after here..