FAS is the greatest ETF ever!
FAS is so great! No, seriously. I have a blog post about Nam Tai Electronics that I wanted comment to, but in my recent experience I get lots of good discussion on 3x leveraged ETF's, and not a peep about stocks of real companies. A re-post (minus some self-indulgent nonsense) is below.
I had a dream last night that Nam Tai Electronics (NTE) was being acquired for about $5.50 per share. (The way my mind works, it is relatively uninteresting who is doing the acquiring, so my dream didn't include that part.) This has almost no predictive value (as noted in a previous post about a dream I had about NTE).
But what if another company started buying shares of NTE on the market right now, and made an offer to buy it out completely? If the offer was refused, they could sell their shares for a profit anyway. If the offer was accepted, they would have been buying dollars for 75c each. Why don't bigger companies do this?