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- by The Price Guy
My research did not give many good candidates yet. I got in PX and YHOO today.
YHOO:
This is an arbitrage play. This is the first time I try this. I never had a good understanding of how it works. MSFT offers $31 a share to buy YHOO. My sense is that it will go through. But YHOO's share price only goes up to about $28. There is a 10% difference. MSFT's offer letter says the offer is $31 a share based on previous day MSFT's close price. Half of the offer is cash and the other half is 0.9xxxx share of MSFT stock. I really don't have a very good understanding of the exact offer. If it was $31 cash firm, I definitely would buy more. Anyway, I will buy some with this fake money to see how things work.
PX:
Praxair, Inc. engages in the production, sale, and distribution of industrial gases worldwide. Its primary products include atmospheric gases, such as oxygen, nitrogen, argon, and rare gases; and process gases, such as carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene. The company designs, engineers, and builds equipment that produces industrial gases. It also supplies surface coatings, including wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings, and powders to aircraft, printing, textile, plastics, primary metals, petrochemical, and other industries. In addition, the company manufactures electric arc, plasma, and high velocity oxygen fuel spray equipment, as well as arc and flame wire equipment used for the application of wear resistant coatings. It serves industries, such as healthcare and petroleum refining; computer-chip manufacturing and beverage carbonation; fiber-optics and steel making; and aerospace, chemicals, and water treatment.
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