RE:RE:FirstEnergy - RMP Introductory Presentation I've been chasing Strategic Alternatives and takeover targets for the last 5-7 years and seldom lost money. I call it special situations and depending on risk tolerance, may allocate up to 30% of my portfolio.
My most recent plays had mixed results.
- Striker was taken over by GXE. I expected a higher premium... Sold for small gain as have no interest in holding GXE shares.
- Rock Energy, handled by FirstEnergy, was taken over by RRX for a very small premium. I sold half with the rest converted to RRX.
- Zargon (ZAR) is still under Strategic Alternatives but they sold a SE Sask asset last month for a great price. The stock went up from 0.45 to 0.65 the next day. Today it is 0.95, more than double from it's lows.
Among other things, above proves that an asset sale may be more beneficial than the sale of entire company.