Day dreamer I sold 90% of my holding above $12 during the takeover proposal. I have however been buying back sub $8.40 as I believe the risk return favours being long.
Reasons include:
1. GNC has great strategic assets that would be extremely difficult to replicate 2. Macro themes still exist for GNC 3. We know what a bidder is prepared to pay and that is 65% premium to current prices. 4. Even with lower earnings this year due to lower grain yields, dividend likely to still be around circa 5%FF 5. Lots of different MnA possibilities still exist which any corporate financier worth their salt will be looking at putting together.
Just my perspective but risk reward ratio favours owning the stock at these prices in my opinion.
GNC Price at posting:
$8.06 Sentiment: Buy Disclosure: Held
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