Welcome to the SINLetter investment blog, a place where we discuss stock investment ideas as well as post updates related to the model portfolio. For educational purposes only and not meant as personal investment advice.
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September 2, 2010 | Daily Insider Purchases | Author Asif
Top Insider Purchases – September 02, 2010
It was an exciting day for the stocks featured in the top insider purchases post yesterday, with radio broadcasting company Entercom Communications (ETM) posting gains of over 13% and 8×8 Inc (EGHT) posting gains of over 11% on 7 times average daily volume. With the performance today, ETM has gained over 20% in just the two days since we mentioned that the purchase by its Chairman was by far the most interesting purchase.
Five out of the six companies we mentioned yesterday posted gains of more than 5% and the debt ...
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September 1, 2010 | Daily Insider Purchases | Author Asif
Top Insider Purchases – September 01, 2010
Notable Insider Buys:
1. SCANA Corp. (SCG): $39.8
Chairman, President & CEO William Timmerman acquired 29,190 shares of this diversified South Carolina based utilities company, paying $38.94 per share for a total amount of $1.14 million.
This purchase has boosted CEO Timmerman’s position by almost 70% to 70,985 shares held directly without taking into account another 37,195 shares he holds through a 401(K) plan.
The company also owns more than 500 miles of fiber optic cable directly and operates data center facilities. While the dividend yield of 4.9% is attractive, valuation and the $5 billion in ...
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August 31, 2010 | Daily Insider Purchases | Author Asif
Top Insider Purchases – August 31, 2010
When I started working with the insider purchases today, I noticed some large purchases for Glu Mobile (GLUU), a company we have written about in the past and currently have in our Special Reports Portfolio. I also noticed large purchases for Waccamaw Bankshares (WBNK). These purchases were as a result of equity offerings by both these companies. Glu Mobile raised $13.5 million from a group of investors including several venture capital funds and hedge funds to fund the development of a series of games that will be released ...
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August 30, 2010 | Daily Insider Purchases | Author Asif
Top Insider Purchases – August 30, 2010:
Notable Insider Buys:
1. Valence Technology Inc. (VLNC): $0.795
Director Carl Berg acquired 7,247,882 shares of this supplier of high energy power systems, paying $0.76 per share for a total amount of $39.76 million. This was an indirect purchase by the Chairman of Valence through Berg & Berg Enterprises. The purchase was paid for in part by $3 million in cash and partly by surrendering a $2.5 million promissory note as well as $8,390 in interest.
With 9 million shares short and a short ratio of 26, the stock could spike merely on the prospects ...
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August 30, 2010 | Merger Arbitrage | Author Asif
Merger activity decreased significantly last week with just one new deal being announced, one deal modified and four deals closing. A deal that was long rumored was also announced on Sunday when French drug maker Sanofi-Aventis disclosed its $18.5 billion bid for Genzyme for $69 in cash.
Based on feedback received, we have modified the format of these posts and we hope that you find this new format useful.
Deal Statistics:
| Total Number of Deals Closed in 2010 | 60 |
| Total Number of Deals That Did Not Complete in 2010 | 2 |
| Total Number of Pending Deals | |
| Cash Deals | 47 |
| Stock Deals | 9 |
| Stock & Cash Deals | 12 |
| Total Number of Pending Deals | 68 |
New Deals:
The acquisition of Diamond Management & Technology Consultants (DTPI) by PricewaterhouseCoopers for a closing value of $378 million at $12.50 per share in cash
Closed Deals:
1. The acquisition of TTI Telecom (TTIL) by TEOCO Corporation on August 23, 2010
2. The acquisition of Eclipsys Corporation (ECLP) by Allscripts – Misys Healthcare (MDRX) on August 25, 2010
3. The acquisition of RCN Corporation (RCNI) by ABRY Partners on August 26, 2010
4. The acquisition of Smith International (SII) by Schlumberger on August 27, 2010
Modified Deals:
The acquisition of 3PAR (PAR) by Hewlett-Packard Company (HPQ) for a closing value of $2 billion at $30 per share in cash. After a whole week of bidding war, 3PAR accepted HP’s superior bid. Dell now has three days to come back with a counter offer.
A Short History of the Dell-HP-3PAR Saga:
August 28, 2010: 3Par accepts HP’s ’superior’ $2B offer
August 27, 2010: Donatelli seen driving HP bidding war for 3Par
August 27, 2010: HP raises 3Par bid to $2B, now it’s Dell’s turn
August 27, 2010: HP tops Dell again with $2B 3Par bid
August 26, 2010: HP again boosts offer for 3Par, this time to $1.8B
August 26, 2010: Dell boosts offer for 3Par
August 26, 2010: HP again boosts offer for 3Par, this time to $1.8B
August 25, 2010: 3Par open to new Dell offer
August 25, 2010: 3Par to talk with HP, open to new Dell bid
August 24, 2010: 3Par up again as Dell mulls higher offer
August 24, 2010: Dell could sweeten offer for 3Par
August 23, 2010: Text of HP offer to buy 3Par
August 23, 2010: 3Par shares surge on HP’s $1.6B offer
August 23, 2010: HP’s $1.6B offer for 3Par tops Dell
August 16, 2010: Dell to buy 3Par for $1.15B
Top 10 Deals With the Largest Spreads:
| Symbol | Acquiring Company | Closing Price | Last Price | Closing Date | Profit | Annu. Profit |
| TLCR | Grifols (GRF.MC) | $26.59 | $22.22 | 12/31/2010 | 19.64% | 58.30% |
| SSE | Naugatuck Valley Financial Corp (NVSL) | $7.25 | $6.09 | 09/30/2010 | 19.05% | 224.27% |
| EMMS | JS Acquisition and Alden Global Capital (N/A) | $2.40 | $2.0206 | 09/30/2010 | 18.78% | 221.08% |
| NAL | First Niagara Financial Group (FNFG) | $14.09 | $12.79 | 05/15/2011 | 10.16% | 14.38% |
| ALY | SeaDrill (N/A) | $4.25 | $3.87 | 12/31/2010 | 9.82% | 29.14% |
| AYE | FirstEnergy (FE) | $24.45 | $22.56 | 03/31/2011 | 8.39% | 14.37% |
| ATBC | Jacksonville Bancorp (JAXB) | $2.32 | $2.15 | 09/30/2010 | 7.91% | 93.10% |
| Q | Century Link (CTL) | $6.01 | $5.64 | 04/21/2011 | 6.57% | 10.24% |
| NRGP | Inergy (NRGY) | $29.59 | $28.16 | 12/31/2010 | 5.08% | 15.08% |
| BGH | Buckeye Partners LP (BPL) | $44.17 | $42.10 | 12/31/2010 | 4.91% | 14.58% |
List of All Pending Deals:
| Symbol | Announced Date |
Acquiring Company |
Closing Value |
Closing Price |
Last Price |
Closing Date |
Profit | Annu.
Profit |
|
|---|---|---|---|---|---|---|---|---|---|
| + | TLCR | 06/07/2010 | Grifols (GRF.MC) | $3.4 billion | $26.59 | $22.22 | 12/31/2010 | 19.66% | 58.34% |
| + | SSE | 02/23/2010 | Naugatuck Valley Financial Corp (NVSL) | $19.5 million | $7.25 | $6.09 | 09/30/2010 | 19.05% | 224.27% |
| + | EMMS | 05/25/2010 | JS Acquisition and Alden Global Capital (N/A) | $3 billion | $2.40 | $2.0206 | 09/30/2010 | 18.78% | 221.08% |
| + | NAL | 08/19/2010 | First Niagara Financial Group (FNFG) | $1.5 billion | $14.09 | $12.79 | 05/15/2011 | 10.16% | 14.38% |
| + | ALY | 08/12/2010 | SeaDrill (N/A) | $890 million | $4.25 | $3.87 | 12/31/2010 | 9.82% | 29.14% |
| + | AYE | 02/11/2010 | FirstEnergy (FE) | $8.5 billion | $24.45 | $22.56 | 03/31/2011 | 8.39% | 14.37% |
| + | ATBC | 05/10/2010 | Jacksonville Bancorp (JAXB) | N/A | $2.32 | $2.15 | 09/30/2010 | 7.91% | 93.10% |
| + | Q | 04/22/2010 | Century Link (CTL) | $10.6 billion | $6.01 | $5.64 | 04/21/2011 | 6.57% | 10.24% |
| + | NRGP | 08/09/2010 | Inergy (NRGY) | $2.07 billion | $29.59 | $28.16 | 12/31/2010 | 5.08% | 15.08% |
| + | BGH | 06/11/2010 | Buckeye Partners LP (BPL) | $1.14 billion | $44.17 | $42.10 | 12/31/2010 | 4.91% | 14.58% |
| + | CCBP | 08/09/2010 | F.N.B. Corporation (FNB) | $70 million | $37.98 | $36.52 | 12/31/2010 | 4.00% | 11.88% |
| + | VETS | 06/02/2010 | VCA Antech Inc (WOOF) | $41.25 million | $0.34 | $0.3272 | 09/30/2010 | 3.91% | 46.06% |
| + | ATAC | 07/19/2010 | Genco Distribution System Inc. (N/A) | $513 million | $25.00 | $24.15 | 12/31/2010 | 3.52% | 10.44% |
| + | PINN | 02/24/2010 | Investor Group lead by Scotia Waterous (USA) (N/A) | $11 million | $0.34 | $0.33 | 08/21/2010 | 3.03% | 0.00% |
| + | PTV | 08/17/2010 | Reynolds Group Holdings (N/A) | $6 billion | $33.25 | $32.30 | 12/31/2010 | 2.94% | 8.73% |
| + | BNE | 02/24/2010 | RR Donnelley (RRD) | $481 million | $11.50 | $11.18 | 09/30/2010 | 2.86% | 33.70% |
| + | BXC | 07/22/2010 | Cerberus Capital Management (N/A) | $111.1 million | $3.40 | $3.31 | 12/31/2010 | 2.72% | 8.07% |
| + | ALOY | 06/24/2010 | ZelnickMedia (N/A) | $126.5 million | $9.80 | $9.57 | 12/31/2010 | 2.40% | 7.13% |
| + | SMTB | 07/15/2010 | People's United Financial Inc. (PBCT) | $60 million | $3.83 | $3.74 | 12/31/2010 | 2.38% | 7.06% |
| + | DIVX | 06/02/2010 | Sonic Solutions (SNIC) | $323 million | $7.85 | $7.69 | 09/30/2010 | 2.04% | 23.97% |
| + | PMACA | 06/10/2010 | Old Republic International (ORI) | $228 million | $7.02 | $6.88 | 09/30/2010 | 2.01% | 23.62% |
| + | MFE | 08/19/2010 | Intel Corporation (INTC) | $7.68 billion | $48.00 | $47.10 | 12/31/2010 | 1.91% | 5.67% |
| + | PTEC | 08/17/2010 | Marlin Equity Partners (N/A) | $139 million | $3.85 | $3.78 | 12/31/2010 | 1.85% | 5.50% |
| + | PTEC | 08/17/2010 | Marlin Equity Partners (N/A) | $139 million | $3.85 | $3.78 | 12/31/2010 | 1.85% | 5.50% |
| + | PRPX | 02/17/2010 | L.B. Foster Co. (FSTR) | $112 million | $11.71 | $11.50 | 08/31/2010 | 1.83% | 666.52% |
| + | TSFG | 05/17/2010 | TD Bank Financial Group (N/A) | $61 million | $0.28 | $0.2752 | 09/30/2010 | 1.74% | 20.54% |
| + | OSTE | 08/17/2010 | Medtronic (MDT) | $123 million | $6.50 | $6.395 | 12/31/2069 | 1.64% | 0.03% |
| + | WAIN | 06/29/2010 | Eastern Bank (N/A) | $163 million | $19.00 | $18.71 | 12/31/2010 | 1.55% | 4.60% |
| + | XJT | 08/04/2010 | SkyWest (SKYW) | $133 million | $6.75 | $6.65 | 12/31/2010 | 1.50% | 4.46% |
| + | OMNI | 06/04/2010 | Wellspring Capital Management (N/A) | $122 million | $2.75 | $2.71 | 11/15/2010 | 1.48% | 7.00% |
| + | PSYS | 05/17/2010 | Universal Health (N/A) | $3.1 billion | $33.75 | $33.29 | 12/31/2010 | 1.38% | 4.10% |
| + | MIR | 04/12/2010 | RRI Energy In. (RRI) | $1.6 billion | $9.84 | $9.71 | 12/31/2010 | 1.31% | 3.90% |
| + | NTY | 07/15/2010 | The Carlyle Group (N/A) | $3.8 billion | $55.00 | $54.38 | 12/31/2010 | 1.14% | 3.38% |
| + | ACF | 07/22/2010 | General Motors Co. (N/A) | $3.5 billion | $24.50 | $24.25 | 12/31/2010 | 1.03% | 3.06% |
| + | NYM | 07/15/2010 | ProSight (N/A) | $230 million | $25.75 | $25.51 | 12/31/2010 | 0.94% | 2.79% |
| + | GLG | 05/17/2010 | Man Group (N/A) | $1.6 billion | $4.50 | $4.46 | 09/30/2010 | 0.90% | 10.56% |
| + | MAM | 03/12/2010 | Emera Inc (N/A) | $75.7 million | $45.00 | $44.60 | 12/31/2010 | 0.90% | 2.66% |
| + | ME | 04/15/2010 | Apache (APA) | $2.7 billion | $23.13 | $22.95 | 09/30/2010 | 0.80% | 9.42% |
| + | AEZ | 07/28/2010 | Hess Corp (HES) | $450 million | $7.07 | $7.01 | 12/31/2010 | 0.79% | 2.35% |
| + | HEW | 07/12/2010 | Aon Corp (AON) | $4.9 billion | $49.26 | $48.91 | 11/15/2010 | 0.71% | 3.37% |
| + | WEL | 04/09/2010 | Halliburton Company (HAL) | $240 million | $3.00 | $2.98 | 09/30/2010 | 0.67% | 7.90% |
| + | ACAP | 07/08/2010 | The Doctors Company (N/A) | $386 million | $41.50 | $41.26 | 12/31/2010 | 0.58% | 1.73% |
| + | LSBX | 07/15/2010 | People's United Financial Inc. (PBCT) | $96 million | $21.00 | $20.90 | 12/31/2010 | 0.48% | 1.42% |
| + | BSMD | 05/13/2010 | Merit Medical Systems (MMSI) | $96 million | $4.38 | $4.36 | 09/30/2010 | 0.46% | 5.40% |
| + | SWWC | 03/03/2010 | Institutional Investors (N/A) | $275 million | $11.00 | $10.97 | 03/31/2011 | 0.27% | 0.47% |
| + | HGRD | 07/28/2010 | an affiliate of the private equity firm Vestar Capital (N/A) | $294 million | $8.20 | $8.18 | 09/30/2010 | 0.24% | 2.88% |
| + | PPCO | 08/09/2010 | Endo Pharmaceuticals (ENDP) | $144 million | $5.00 | $4.99 | 12/31/2010 | 0.20% | 0.59% |
| + | ADCT | 07/13/2010 | Tyco Electronics (TEL) | $1.24 billion | $12.75 | $12.725 | 12/31/2010 | 0.20% | 0.58% |
| + | WMZ | 05/24/2010 | Williams Partners L.P. (WPZ) | $32.36 | $32.30 | 09/30/2010 | 0.19% | 2.22% | |
| + | RUBO | 05/10/2010 | Mill Road Capital (N/A) | $91 million | $8.70 | $8.69 | 08/23/2010 | 0.12% | 0.00% |
| + | GNA | 06/02/2010 | Gerdau (GGB) | $1.7 billion | $11.00 | $10.99 | 08/31/2010 | 0.09% | 33.21% |
| + | SWSI | 08/09/2010 | Nabors Industries (NBR) | $900 million | $22.12 | $22.11 | 09/30/2010 | 0.05% | 0.53% |
| + | DTPI | 08/24/2010 | PricewaterhouseCoopers (N/A) | $378 million | $12.50 | $12.50 | 12/31/2010 | 0.00% | 0.00% |
| + | VIRL | 06/10/2010 | Synopsys (SNPS) | $315 million | $12.00 | $12.00 | 12/31/2010 | 0.00% | 0.00% |
| + | MEND | 07/12/2010 | Johnson & Johnson (JNJ) | $480 million | $23.40 | $23.41 | 09/30/2010 | -0.04% | -0.50% |
| + | UNCA | 08/13/2010 | IBM (IBM) | $480 million | $21.00 | $21.02 | 12/31/2010 | -0.10% | -0.28% |
| + | VRX | 06/21/2010 | Biovail Corporation (BVF) | $3.3 billion | $58.07 | $58.33 | 12/31/2010 | -0.45% | -1.33% |
| + | ICXT | 08/16/2010 | FLIR Systems (FLIR) | $274 million | $7.55 | $7.64 | 12/31/2010 | -1.18% | -3.50% |
| + | CAL | 05/03/2010 | United (UAUA) | $1.2 billion | $21.47 | $21.80 | 12/31/2010 | -1.50% | -4.46% |
| + | PZZ | 08/16/2010 | Leonard Green & Partners (N/A) | $363 million | $8.50 | $8.63 | 12/31/2010 | -1.51% | -4.47% |
| + | ABII | 06/30/2010 | Celgene (CELG) | $2.9 billion | $71.57 | $74.20 | 12/31/2010 | -3.55% | -10.53% |
| + | TRBN | 08/12/2010 | Emergent BioSolution (EBS) | $96.8 million | $4.22 | $4.45 | 12/31/2010 | -5.09% | -15.10% |
| + | DYN | 08/13/2010 | Blackstone Group (BX) | $4.7 billion | $4.50 | $4.81 | 12/31/2010 | -6.44% | -19.13% |
| + | CPII | 05/10/2010 | Comtech (CMTL) | $472.3 million | $13.69 | $14.72 | 09/30/2010 | -6.97% | -82.02% |
| + | PAR | 08/28/2010 | Hewlett-Packard Company (HPQ) | $2 billion | $30.00 | $32.46 | 12/31/2010 | -7.58% | -22.49% |
| + | MCCC | 06/01/2010 | Chief Executive Rocco Commisso (N/A) | $590 million | $6.00 | $7.20 | N/A | -16.67% | 0.00% |
| + | DTG | 04/26/2010 | Hertz (HTZ) | $1.3 billion | $38.43 | $48.05 | 12/31/2010 | -20.03% | -59.43% |
| + | CCE | 02/25/2010 | The Coca-Cola Company (KO) | $12.3 billion | N/A | $28.67 | 10/01/2010 | N/A | N/A |