Merger Arbitrage Spread List January 6, 2019
This is the Merger Arbitrage Spread List January 6, 2019. A FREE list of the largest cash merger arbitrage opportunities trading on major US exchanges. The FREE spreadsheet below contains the latest essential deal information and criteria as per official company announcements. This merger arbitrage spread list provides the user with an investable database of deal spread opportunities. This information can provide a solid foundation for making merger arbitrage investing part of your investment portfolio. We encourage traders and investors to perform their own due diligence before making investments. However, merger arbitrage (also known as risk arbitrage) is relatively simple to understand and execute. The most recent spread listings can be found here.
This risk arbitrage tracking list provides the user with an investable database of deal spread opportunities. Rules for inclusion in this list can be found on the spread tracker eligibility rules page along with additional help and user guidelines. Unlike some data providers, dividends, which can have a dramatic effect on the value of a spread have been included in the return calculation.
The Past
- There were no closed deals from last weeks top 20 list
- There were no failed deals from last weeks list.
- The three stocks to drop out of last weeks list were Navigators Group (NAVG), Investment Technology Group (ITG) & Bojangles (BOJA)
The Present
- The 3 T20 replacements this week are Converge One Holdings (CVON), Civitas Solutions (CIVI) & InfraREIT (HIFR)
- Of these three replacements, none are new cash deals but CIVI has recently fulfilled the trading requirements to be considered for the list.
- The largest spread this week again is AVA. Following the failure to obtain the necessary regulatory approval the stock has slipped away this week. Parties to this deal have publicly stated they continue to consider their options and the deal remains active. The declined in price during the week exposes the stock to greater market fluctuations. However, with the spread now at 24.68% the stock, despite its high risk may be considered an outside punt if the appeal to the aforementioned decision is successful. That aside, the largest (simple) spread is PACB, offering a return of 9.14%. This displaces RHT in second place whose strong performance during the week saw its spread narrow to 8.83%. The annualised return however remains at a similar level due to the extended time frame of expected completion. New entrants Converge One Holdings (CVON), Civitas Solutions (CIVI) & InfraREIT (HIFR) are offering spreads of 1.54%, 1.43% and 1.19% respectively
- The average spread for the entire T20 list (excluding AVA) is a 3.12% return which is still higher than the recent historical average but slightly down from last week. This elevated level of return is expected as markets remain volatile. Whilst still taking cues from the broader economic situation investors are advised to exercise a great deal of caution when selecting deals but opportunities are arising as spreads widen. As mentioned in last weeks notes, the broader market sell off affects ALL stocks regardless of their M&A status. Always be careful using leverage in these situations and maintain at least some dry power should “the big one” hit home.
The Future
- There are no earnings announcements expected during the forthcoming week from the members of this weeks list
- There are no dividend payments expected during the coming week
- Any deal announcements relating to this weeks T20 list will be announced in real time, most often via out twitter feed @MergeArbLimited.
