If anyone ever tells you about a 'sure thing', don't believe them.

Now, having said that, here's a sure thing.

RIN is subject to a takeover offer from US company Cemex. The offer is unconditional. When you accept, you can get $19.50 for your first 2000 shares. Current price on market for RIN stock is about $18.78. Hence- you can make a guaranteed $1,440 (less costs) by buying 2000 shares on market and selling into the offer.

Approx costs:
- brokerage $30
- holding costs (i.e. interest on the $37k you use to buy your 2000 shares, calculated at 8% for 50 days) $400 (note this is deductible)
= $1000 guaranteed gross gain, minus tax.

Don't say I didn't tell yas about it.

FD out

 

FD in

and yes, I've done this today myself. Money where my mouth is.

FD out (again)

 

i didnt follow RIN, bt has the takeover being finalised or its in the process of finalising it?

 

Went unconditional last night. $ gets paid to you 1 month after you accept the offer. So you buy, wait for Cemex to send you the forms, send them back, and wait another month. Prob about 6 week turnaround from buying to getting your $ back with the extra $1400.

 

If I understand correctly, the takeover price is USD15.85 (dont know if they have a facility for small shareholders that pays AUD19.50, in which case, there is a guaranteed profit here)

AUD19.50 reflects a AUD/US$ rate of ~0.81

Current AUD/USD rate is $0.84 (for banks...for Joe Blow...its probably $0.87 or something)

$0.84 translates to an AUD price of AUD18.86.

If you got 0.87 when converting back, you would effectively get a price of AUD18.21 and lose about 50 cents a share and also lose holding costs.


All this is assuming theres no special facility for small shareholders which pays in AUD.

 

Reading skills failing, Beavs?

First 2000 shares = A$19.50, guaranteed.

Hmmph. People like you don't deserve the benefit of my wisdom.

 

hahaha

I didn't think you'd be that stupid.

Unfortunatley I can't do anything about it - I can fly to the moon more easily than purchase shares in my own name.

 

Beavette doesn't have a spare $37k lying about?

as for "I didn't think you'd be that stupid"...I'd never make that mistake with you.

Think about it, Beavs...a bit more...ahhh, there ya go.

 

With that sort of profit you could buy 1/8th of a share trading course.

 

...taught by someone who probably couldn't spell "arbitrage".