No. of Recommendations: 2
Hi Denny,

Supposing the deal goes though, arbitrage will slowly raise the price to $60 or whatever the buyout number is. Bad news on the antitrust front would drop the price so why not put a stop loss at, say, $53 and just let it ride?

Hey, my crystal ball is on the fritz again - everyone needs to make their own decisions.

The way I would look at it is that your maximum upside is $60. The stop loss might work, but if the Feds give any hint that its a no-go, the market reaction could be swift and painful. Will your stops work if it gaps back down to $45 in the blink of an eye?

Yes, they'll work but only after the price sits at $45 and then you are out and the CAGR is all caput.

Why take the risk for that last 10% move. Simply role it over into the next best BMW candidate and for those outside tax favored accounts, take solace in the fact that if your paying taxes your making money. It beats losing money.

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