Should a Buyout Happen I am a relativley new investor and currently have CXR as my largest position. I know that a buyout is by no means a sure thing, but I was hoping for some advice should a buyout be announced in the near future. As somone who has never held a stock that has been bought out, I am unsure of the best strategy for selling my position..
Do I sell my position right after the market opens and lock in the profits immediately, or do I wait until the deal closes?. Selling immediately seems to be a good strategy as my cash could be moved into other investments and I would avoid the possibility that the buyout be terminated (such as with Allergan/Pfizer). However should i sell immediately I would miss out on any potential profits from a subsequent bid/bidding war. Then there is currency fluctations to factor in as any deal would be in USD. If I sell immediately and the Canadain dollar decreases, wouldn't CXR increase, and I would miss out?
I would obviously be extremelly happy regardless of when I sell should a buyout be announced, but it seems smart to have a better understanding of buyout strategy. Any advice anyone could give me on this matter would be greatly appreciated. Thanks!