Oshkoch Trucking is buying JLG for $28 per share - a 40% premium.
The best part - I own December $20 calls. Yummy!
We left JLG by the sidelines a while ago after if fell from $30 and never recovered. However, after 2 quartesr of breakout results, I bought some calls.
This augurs well for other companies that are doing well but are not having their results appreciated by the market (DO, GRP).
I am owning some call option for $22.5 expired on november. what should I do ? please, give advise.
ReplyDeletesell it right away or hold on it.
Congrats!
ReplyDeleteWait and see if CAT launches a rival bid. You have ~5 weeks. While the value of the calls won't improve or worsen, there is a 1 month opportunity cost (what could you gain if you cashed out now).
I think the upside of waiting a few weeks to see if CAT comes in is far greater than the upside of cashing out now and using the cash elsewhere for 1 month.
You won't even need to wait the entire 5 weeks: 3 weeks is sufficient probably for a rival to step up.
Lucky you! BTW, while I still hold onto TTI, I am looking for another recommendation in the gas (drilling, exploration etc) sector -- are DO, GRP reasonable buys now for a 3-month investment? Do you see GRP as a better play after today's acquisition?
ReplyDeleteAlso, why did you decide to leave out the usually strong Sept-Feb tech boom? Am sure you knew about it. Was it a conscious decision to leave it out?
thanks for the advice.
ReplyDeleteone more question of the price of the call option for $22.5.
Right now the bid price is $5.00
and ask price is about $5.20.
I would expect the bid price is $28 - $22.5 = $5.50. Why is only $5.00 ? Let's say if I keep holding until the expiration date, would the bid price becomes $5.50.
thank you very much. I really appreciate your insight.
We were recently STOPped out of GRP, ESV and GLBL - all of which I love. GRP i sespecially hit hard and that's silly for a company with the enormous backlog of orders it has.
ReplyDeleteAs for tech boom, I didn't. I have mentioned that I believe in the chip sector very strongly. As such, the model portfolio has TRID, ISIL, and UCTT. Additionally, we have T.
I also said a few months back that SNDK would be a strong buy as we got into the pre-holiday season - it has moved up strongly the past month.
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Why is the option only $5 and not $5.50? Because the market isn't buying JLG for $28 - only $27.4. That delta will stay until the deal is even closer to reality
Andrew,congrats on the ILMN pick.it is trading 15% after hrs.Also,we got stopped put of TRID and UCTT.When should we buy em?
ReplyDelete