The Motley Fool Discussion Boards

Previous Page

Stocks B / Berkshire Hathaway


Subject:  Re: OT: arbitrage Date:  5/20/2001  8:39 PM
Author:  PhoolishPhilip Number:  48001 of 235716


You are absolutely right! The present price offers a 9% return, and would be a 19% annualized return if the deal closes by years end as Nestle predicts it will. There must be something wrong with the deal or people would be snapping up the shares, especially in a decling interest rate environment. I'm right, ain't I? What could be wrong with the deal, I asks myself? Is the EU going to nix it based on monopoly concerns? Is Nestle po'd at the recent results? I dunno?!? In fact, I was getting skittish and thinking that I should sell my long position in RAL and park the money in a moneymarket. On the other hand, Nestle just reaffirmed their view that the deal will close by years end. Besides, where else am I going to get a guaranteed 15-20% on my money over the next six months! I may have to double down on Monday. Or sell.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us