The blind Squirrel found an acorn in ZGEN
One of the advantages of buying stocks that are beginning to hit new highs and show upward price movements is that you will find that a good number of your positions are merger and acquisition targets. Prices do move up just before the acquisition news is released.
Last Friday we bought ZymoGentics (ZGEN) in the Barchart Van Meerten Speculative portfolio for an average cost of 5.48 a share and on Tuesday after the markets closed
Bristol-Myers (BYM) made a 9.75 bid for the stock. This morning we closed out our position at an average price of 9.71 for a profit of 77% during our 2 trading day holding period,
Some of you are probably wondering why I don't stick it out to see if a higher bid comes in but I find that a bird in the hand is worth two in the bush. I'll take my profits and reinvest into a new stock.
Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions in the stock mentioned at the time of publication