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No. of Recommendations: 13
Disclosure: i doan own this company, though it is on my watchlist. Please throw a rec to continue this series.

I am the largest online lottery ticket company in the world. I have contracts with 26 of 41 U.S. state lotteries and more than 50% of international lottery jurisdictions. I agreed to be bought out in early Jan 2006 for $35 per share. Barring any legal complications, I expect the acquisition to be completed in the middle of 2006. I am an attractive arbitrage play because I am currently selling for $33.96, and I even traded at a mid-33s. The current spread is about 3%. And if you believe that the transaction will eventually go through, it is an easy 3% for a few months of idle cash (do the math on an annualized basis, especially if bought on margin). I am a mid-cap stock and I generate good cash flows with stable capex, I have also reduced my debt while still maintaining a dividend yield of 1%. What company am I ?

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