In Focus in a big way, actually. Almost half of my money is in Focus Media (FMCN). I also own some arbitrage puts on SINA, but they keep diverging. I can't grasp why. Is the deal not going to go through? Then why is FMCN falling? Their stock fell on news that they were selling their fastest-growing, most profitable division to SINA. Questionable call, but if they're getting more than 1/3 share of SINA per share, then why are they trading for less than 1/3 (and now less than 1/4) SINA's price? Especially with so much cash on their debt-free balance sheet!
I'm exhausted and baffled from wracking my brain to figure out a scenario where a long FMCN, short SINA via puts arbitrage could lose money. If the deal doesn't go through, you still have a hot growth stock trading for an insanely low multiple. Can someone help me out here?