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Home Posts risk arb

Trading Lesson #2: Don’t Trade Cash Takeovers

sspencer12/10/2011General Comments, Steven Spencer (Steve's) Blogs, Trading Lesson2 Comments

Trading Lesson #2: Do not trade stocks that are purchased in an all cash transaction. There is very little intra-day movement. Here is the chart for BCSI on December 9th 2011. It spent almost the entire day in a 5 cent range. Not exactly a treasure trove of opportunity for directional traders. Steven Spencer is the co-founder of SMB Capital … Read More

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