Merger Arbitrage Spread List April 14, 2019
This is the Merger Arbitrage Spread List April 14, 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.14
Not quite sure you’re ready for merger arbitrage yet?
Why not read our “How to Profit from Merger Arbitrage” guide first.
Spread Tracker Guidelines
Following the information in the spreadsheet below is a brief analysis of the data. This includes the sections “Past”, “Present” and “Future”. The “Past” section details which stocks dropped out from the previous week’s list. See our list archive for previous articles. The “Present” lists any new stock additions to the list and gives a brief analysis of the return metrics of the portfolio. There is also limited commentary of the portfolio and wider economic picture. The “Future” lists known upcoming corporate events for the coming week relating to the stocks listed.
Each Sunday this top 20 page and the accompanying excel file are archived into the “Spreads Archive” page for easy reference. You can find last weeks top 20 in this section. A companion post, a review of the week’s biggest movers to the previous week’s list, is also available. This companion post highlights the gainers and losers and any deal completions or failures. There is also more extensive merger arbitrage investment commentary.
Additional Resources
In addition to our FREE merger arbitrage spread list you can also check out more great FREE content on this site using the menu bar above. Scroll through the listings on the “performance” and “strategy” pages to view our regular weekly output. To the right you can see what everyone else is reading in “Popular Posts” or click on the “Archive” links. You can download our FREE to use Excel merger arbitrage spread calculation tool. This can calculate any stock-for-stock deal spreads you may be interested in along with detailed instructions for use.
The Past
- There were no completed deals from last week’s T20 list.
- There were NO failed deals from last week’s list.
- Belmond (BEL) and Nightstar Therapeutics (NITE) drop out of the list as their deals near completion
The Present
- Papa Murphy’s Holdings (FRSH) is the T20 replacement this week although this spread is a mere 0.16%.
- The largest (simple) spread this week continues to be Pacific Biosciences of California (PACB), offering a return of 8.55% despite the stock rising significantly during the week. Bluegreen Vacations Corporation (BXG) is the second largest offering 5.07%.
- The average spread return for the T20 list is 1.90%. This return is similar to last week and is higher than the recent average. The T20 list is now back up to a full complement of 20 constituents. There are no longer any cash positions.
- The wider geo-political scene appears to be more stable than in recent times. This has been reflected in the performance of the broader market. The average merger arbitrage spread has widened as a handful of new deals have been announced. These have provided new opportunities during the broader market’s recent frothy performance. However, further increases in the broader market will not cause the return of the existing portfolio constituents to move much higher. A market shock could still have a significant negative effect.
- Always be careful using leverage in these situations. Maintain at least some dry power for the expected future opportunities.
The Future
- Mellanox (MLNX) is scheduled to announce earnings this week on the 16th April
- Ellie Mae (ELLI) has a special meeting scheduled for the 15th April
- There are no dividend payments expected during the coming week.
- Any deal announcements relating to this week’s T20 list will be announced in real time, most often via out twitter feed @MergeArbLimited.
