Monday 22 August 2011

Quick short term ideas

Will follow up with longer post later on state of things but some notes to keep track of:



GOOG is near its recent low price target of ~480 set in mid June. Its dropped quite a bit more than other tech stocks so may be oversold. Indicators haven't reversed yet but will look to maybe making a few small purchases of GOOG around this point (likely 3 sets of orders spread out over 2 wks) for a mid-long term play.



MMI - motorola being acquired by GOOG for an all cash transaction of $40 per share with a current price of $37.86. The deal imo is likely to go through so a purchase now may net a 5.6% gain when it closes. Not a bad arbitration play with a likely success probability. Will look to put maybe $5-10k? Don't want to risk that much as the downside risk is it drops to 23 for a downside loss of almost 40%.



Short term - expecting a short term bounce that will be fast in scope but uncertain whether it'll sustain or just drop back down. Will look to do some options early this week for that play.

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