Closing Out the First Position:
Since first written up on 9/21, Aegis Communications has appreciated from $.043 to .0475 . That is a 10.5% pre-tax return in 15 days. At this point, the stock offers 5.2% further appreciation potential for a deal that should see a payment recieved within 2 months. This is still a respectable 30%+ annualized return, and would be worth it the opportunity was essentially riskless. Unfortunately, as mentioned in our previous report, the closing of this deal had a risk involving the necessary court overridings. Though the approval of this seems likely based on incentives, the legal issue is still beyond my comfortable understanding. And, if the deal were to fall through, the investment would likely get decimated So, with the arbitrage position no longer as favorable as before, today marks the closing of the first investment on this site. (Note: in the near future, i will attach an excel file that will record the buys, sells, and dates involved in recommended investments)
For original write up on Aegis on 9/21, click here.