Friday, February 29, 2008

Who Doesn't Like A Rumor?

Through the course of the day and the week I hear many a rumor as you guys probably do. It comes to me from various sources, traders, sell side guys,briefing.com,tradethenews.com,hedge fund analysts just to name a few. I thought it would be fun to list the ones I have heard about. I'm not sure if I will do this daily or on Saturday yet. I'll see how it goes. As you already know it is suicide 99% of the time to trade takeover rumors so don't be stupid. However some of the companies that get mentioned do have good charts and good fundamentals so do your own due dilly and look at the option activity. Here are a few that I heard the last couple of days. If you would like to see this as a regular post please let me know

ATT to buy AKAM around $50
Tracinda to buy MGM
Novartis to buy VRTX
Blackstone to buy RX for $5.6 billion
JNPR for RVBD

2 comments:

KR Singh said...

Hi Upsidetrader,

My name is KR and I am new comer to your blog and I truly value your insights.. I have been trading for a while myself however this past week got caught in the market and lost a close to $10k.. I even wanted to take a break on tuesday but my timings couldn't be more off... I should've followed your pick on CHNR and NOC however decided to go with CHL and got killed.. LOL hahah.. Not to worry.. Like I said My timings couldn't be off...

I was wondering if you are partcipating in any of these speculative trades, MGM and AKAM or NMX.. I saw the options activity in AKAM.. it was huge on friday... MGM had some Options but not as much as AKAM... NMX is something we all know about... please let me know if you feel confident about any of these. I understand these are speculative plays and I can use some help to re-cover some losses.. Thanks


Regards,
KR

P.S. Please keep posting some awesome picks and thanks for helping us individual investors..

upsidetrader said...

Hey KR,
Thanks and welcome.For the most part I day trade,however I do take some positions, home overnight as a rental. Rarely though will i do it with a takeover name as they can go back down as fast as they run up after the news wears off. I mention these names because many times these rumors will resurface and sometimes even come to fruition.I think the best way to play these,if at all, is to wait for pullbacks after the froth wears off and then ONLY if the technicals and fundamentals are strong.
CHNR i have been trading for about a month now with great success,it can be volatile though,if the FXI gets hot again this one could see $40. NOC will be interesting this week and will probably play on a pullback. CHL is under accumulation and should do well in a more cooperative market. Glad you enjoy the site and good luck this week. Say hello any time!!!

upside

About Me

My photo
I am a former hedge fund manager, broker and capital markets dude who now trades for his own account. I love what I do. I will try to post some stocks and an occasional chart that looks attractive for entry.I will also try to point out the idiocy of conventional wisdom and the lack of value added by the mainstream financial media. These postings should not be viewed as recommendations.