Quote:
Originally Posted by reckless
Over the years I've recommended individual stocks since that's my main game.
I have recommended on here in prior posts two companies that I said were very undervalued and great long-term holdings, Fidelity National Finance and Stewart Title Insurance. Both are in the title insurance and real estate processing business. (A wonderfully great and 'safe' business to be in, with near zero risk which produce piles of cash and earnings compounding at great rates.)
So, who wants to make about 20 per cent return in about 4-5 weeks or less??
ASAP buy Stewart Title, symbol STC.
It sells for $41.50 or so as I type this and Fidelity (FNF) has a take-over price of about $50, a deal set to close in less than a month. There's cash and stock involved so some may not want to play along being short-term oriented and options traders.
You should because FNF is getting STC at a discount to intrinsic value and is one of the 1-2 largest title insurance players in the country.
Good luck.
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The deal could close as late as mid-Sept (see 8k from a week or so ago). There was also a second request from the FTC on the deal. Given the second request, there's a chance the combined companies could be forced to divest parts of the biz, which would result a downward adjustment to the purchase price (see proxy docs). It probably all works out, but if it were as riskless as you've outlined, the arbs would not allow such a wide gap, imo.
