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FAS is the greatest ETF ever!



April 23, 2009 – Comments (7) | RELATED TICKERS: NTP , FAS

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? 

7 Comments – Post Your Own

#1) On April 23, 2009 at 11:32 PM, portefeuille (98.91) wrote:

the link

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#2) On April 24, 2009 at 12:00 AM, goldminingXpert (28.83) wrote:

And I thought my dreams were weird.

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#3) On April 24, 2009 at 11:03 AM, FleaBagger (27.46) wrote:

Thanks, portefeuille. (I usually say in my head whatever I'm typing, so that I can hear it, but I really don't know how to say "portefeuille." I usually have a beginner's knack for pronouncing French words, but that one looks daunting and it sounded horrible to hear myself, in my own mind, struggling to form the sound. Ouchie!)

Also, why do so many other players link to the player pages of the players they're responding to in these comment threads? Is that a basic courtesy that I'm neglecting? I'll go back and do that now.

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#4) On April 24, 2009 at 11:04 AM, FleaBagger (27.46) wrote:

goldminingXpert -

Here's the link to your player page, just in case you were coveting what's-his-name's.

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#5) On April 24, 2009 at 12:22 PM, FleaBagger (27.46) wrote:

Oh, and you may notice that I can't get an NTE comment to save my life.

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#6) On April 28, 2009 at 9:16 PM, BravoBevo (99.97) wrote:

fleabagger:  Since you asked, I thought I'd let you know that I've closed out the position on the IHOP restraurants (DIN). As you are aware, DIN's stock price has moved up very quickly over the last couple of months.  Today's price action might only be an intermittant top but the extra "pop" coming out of the good 1st FQ financials seemed to provide a nice place to take profits. DIN has a heavy load of debt taken on with the Applebee acquisition, but virtually all of it is long-term debt. So the question becomes, can DIN earn enough to pay down the acquisition cost faster than projected. I think so, and so if there is any significant pullback I'd like to get back into the stock again. 

You asked about a possible DIN bankruptcy: I just cannot foresee a bankruptcy anytime soon. Yes, long term debt (due 12/2037) was $1.8 billion at FYE, but current maturity of long term debt for 2009 is only $15 million. DIN has over 7x that amount sitting around in cash. 2037 is a long time from now.  Plenty of time to turn the Applebee's purchase into a winning proposition.

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#7) On April 29, 2009 at 11:32 AM, FleaBagger (27.46) wrote:

Thanks for your personal response, BB! If I still have your attention, do you have an opinion on NTE or FMCN?

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