Investing

Heinz buyout

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  • Feb 16th, 2013 1:28 pm
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Jun 15, 2009
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ccyk wrote: haha lol
like his investment in s&p?

the only advantage he has is that he born some 50/60 years earlier than me.
And also being exponentially more intelligent and capable than you.

You seriously talk a big game when you are most likely consistently losing money and/or underperforming the market, despite your claims to the contrary.
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Apr 30, 2012
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kg_canadaka wrote: And also being exponentially more intelligent and capable than you.

You seriously talk a big game when you are most likely consistently losing money and/or underperforming the market, despite your claims to the contrary.
Come on, show some respect. You are talking to the future richest dude on the planet. :arrowd:
ccyk wrote: By history, it is a window dressing day tomorrow. But US has this cliff talk that is unique this year. finger cross.

How well do your portfolio do this year?
I think I did pretty good, up 58% right now and beat last year's 45%, unless it tanks tomorrow.
Sanyo wrote: So by that account you should be the richest man in the world by 2030?
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Nov 26, 2005
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coachpotatoarmchairQB wrote: ccyk can you post your trades this year so we can tell what the gains are. i want to learn you claim to make 20% YTD!
I only hold 2 stocks, 97% mmt & 1.5% hoc plus 1.5%cash
Dec 31, 2012 price mmt:$1.70 hoc:$2.95
price now mmt:$2.10 hoc $3.30
%gain mmt:23.53% hoc:11.86%

here are my trades so far this year
hsbc:
20130115 20130118 500.000 HERITAGE OIL CORP-EXCH BUY 2.9700 6.88 -1,491.88
20130110 20130115 200.000 HERITAGE OIL CORP-EXCH BUY 3.1100 6.88 -628.88
20130104 20130109 1,000.000 HERITAGE OIL CORP-EXCH BUY 3.0100 6.88 -3,016.88
20130104 20130109 1,700.000 HERITAGE OIL CORP-EXCH BUY 3.0000 6.88 -5,106.8
bmo:
Jan 16, 2013 Jan 21, 2013 Buy MART RESC MMT 4,500 1.74 C -7,839.95 C
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:arrowu:
Looks simple enough. I am total newbie in the stock market. Maybe I should just replicate this portfolio and see. :rolleyes:
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bgallagher wrote: :arrowu:
Looks simple enough. I am total newbie in the stock market. Maybe I should just replicate this portfolio and see. :rolleyes:
Ya, cause if there's a better way to invest than following some random stock picks on an internet forum, I haven't heard it yet. :facepalm:

Why not just buy TD Index Funds and don't try and pick individual stocks until you have a lot more experience.
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Vitalogy80 wrote: Ya, cause if there's a better way to invest than following some random stock picks on an internet forum, I haven't heard it yet. :facepalm:

Why not just buy TD Index Funds and don't try and pick individual stocks until you have a lot more experience.
Well, I already have TD index Funds. Now, I want to get slowy in the stock market but I have no clue what to buy. :cry:
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May 31, 2007
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brunes wrote: Dunno why O'Leary is making it mysterious - it is public knowledge, Berkshire is getting 9% on it's prefered shares in return for it's piece of the aquisition... its single digit yes but pretty damn good. Where else can you park a few billion dollars and get a near zero risk return of 9%?
Interesting he never mentioned it was 9% year. And ya, 9% annual returns is fantastic for long stock holders.
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Dec 11, 2005
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ccyk wrote: like buying oil companies? for some reason buffett doesn't touch energy/material sector? no?
There is no oil company with a proven record of 100+ years of solid income like Heinz. And oil prices move all over the place. XOM only pays a 2.8% dividend. And BRK can not buy 100% of XOM. There are a lot of very good reasons.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
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bgallagher wrote: Well, I already have TD index Funds. Now, I want to get slowy in the stock market but I have no clue what to buy. :cry:
Probably Better to sit on the sidelines and just invest in index funds.
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Nov 26, 2005
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brunes wrote: There is no oil company with a proven record of 100+ years of solid income like Heinz. And oil prices move all over the place. XOM only pays a 2.8% dividend. And BRK can not buy 100% of XOM. There are a lot of very good reasons.
but standard oil was around for a long long long time.
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SEC Charges Heinz Call Buyers With Insider Trading
Submitted by Tyler Durden on 02/15/2013 16:44 -0500

Yesterday, after the news of the Heinz acquisition hit the market just in time to wipe away the bitter aftertaste of the biggest GDP drop in Europe since 2009, we brought you the undisputed fact that someone made nearly $2 million in call options, which soared 1700% overnight and was bought the day before. It appears even the SEC finally is back to doing what its historic task was before it discovered internet porn, and one day after the report, has charged unidentified traders operating or trading out of Zurich, Switzerland with generating some $1.8 million in profits. Notably, the trade occurred through an "omnibus account located in Zurich, Switzerland in the name of GS Bank IC Buy Open List Options GS & Co c/o Zurich Office (the "GS Account")." Does GS stand for Goldman Sachs one wonders? And while we commend the SEC on finally doing its job, our original question still stands: who leaked the details of the transaction one day before its formal announcement?

The details:

On February 14, 2013, Heinz announced that it had entered into a merger agreement to be acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital. The deal price of $72.50 per share represented nearly a 20% premium to Heinz's closing price of $60.48 on February 13.



In reaction to the Announcement, on February 14, Heinz's stock closed at $72.50 - an increase of $12.05 per share, or approximately 20%, over the previous trading day's closing price of $60.48. The trading volume in Heinz also skyrocketed on February 14, reaching over 64 million shares, an increase of over 1,700%. Prior to the Announcement, Heinz's stock had consistently traded at just around or below $60 per share since November 2012.



On February 13, the last trading day before the Announcement, one or more unknown traders, using the GS Account, purchased 2,533 out-of-the-money June $65 calls. This was effectively a wager that Heinz's stock, which had consistently traded around $60 per share for the last four months, would increase in value by approximately $5, or nearly 7.5%, over the next four months.



Equity call options,like the ones traded by Defendants, give the buyer the right, but not the obligation, to purchase a company's stock at a set price (the "strike price") for a certain periodof time (through "expiration"). In general, one buys a call option, or call,when the stockprice is expected to rise, or sells a call whenthe stockprice is expected to fall. For example, one "June 2013 $65" call on Heinz stockwouldgive the purchaser the right to buy 100 shares of that stock for $65 per share before the call expired on the Saturday following the third Friday of the referenced month, or, in this case, June 22, 2013. If at the time of purchase the call strike price is above the price at whichthe stock is then trading, the call is "out-of-the-money" because it would be unprofitable to exercise the call and pay more for the stock than if it were purchased on a stock market.



The purchase of 2,533 Heinzcalls with a strikeprice of $65 on February 13 was unusual giventhe historical options data for those calls. For example, on February 12 only 14 June $65 calls were purchasedand on February 11 no June $65 calls were purchased. In fact, since November 14, 2012, not more than 61 of these contracts had been purchased on any other single day.



As a result of the Announcement, the price of June $65 calls shot up from a close of $0.40on February 13 to a close of $7.33 on February 14, an increase of over 1,700%.



Between September 1, 2012 and February 13, 2013, the GS Accounthad no prior trading history in Heinz.



The timing, size and profitability of the Defendants' trades, as well as the lack of prior history of significant trading in Heinz in the GS Account, make these trades highly suspicious. In particular, after not trading Heinz securities in the GS Account for at least six months, Defendants invested nearly $90,000 in risky option positions the day prior to the Announcement. As a result of this well-timed trade, the Defendants' Heinz position increased from approximately $90,000 to over $1.8 million, an increase of nearly 2,000%) in just one day.



On information and belief, the unknown traders of Heinz securities were in possession of material, nonpublic information about the proposed acquisition of Heinz at the time they made the purchases alleged in this Complaint.

Filing below
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coachpotatoarmchairQB wrote: But it shows only + around 5% for heritage oil.

Yeah mart resource jumped a bit around 20%

I though you said you put all your money on one stock
Yes, he is :arrowd:
I only hold 2 stocks, 97% mmt & 1.5% hoc plus 1.5%cash

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