BUYOUT OFFER COULD REACH $28 TO $35 - ADDING 350,000 SHARESRight after we posted the BUYOUT news today, within maybe an hour, the company issued a press release.
From what we know, the company is looking for an offer between $25 and $30 including the possible debt / potential future liability.
If the debt / potential future liability is rolled over into a separate company, the offer price could reach as high as $35 to $40 a share.
At this point, we think the stock is a screaming buy especially with verification today that at least 3 known companies / firms are interested in buying Arconic.
This could cause a bidding war!
We added another 350,000 shares today for a total of 500,000 shares
Average price, $20.63
AT MINIMUM, KNOWING THERE IS A 99.9% CHANCE ARCONIC WILL BE BOUGHT, THE STOCK SHOULD BE TRADING BETWEEN $25 AND $30 RIGHT NOW
FYI...
Look at ALCOA CORP COM - $6.3 BILLION Market Cap.
Trading at over 1,100 times trailing earnings
52 week high, $62.35
NOW LOOK AT ARCONIC INC COM - $10 BILLION MARKET CAP, LAST 8 MONTHS, EARNINGS OF $2.37
ARCONIC ALSO PAYS A DIVIDEND, ALCOA PAYS NOTHING
ARCONIC'S POTENTIAL FOR FUTURE EARNINGS COULD DWARF THAT OF ALCOA
ALCOA CAN'T GET IT'S DEBT UNDER CONTROL - ARCONIC HAS A BETTER FINANCIAL BALANCE SHEET THAN ALCOA
CSTM
BUYOUT - BUYWall Street Rumor is buyout could be announced soon!
ARNC is rumored to be in last minute negotiations for a buyout.
Once this rumor really starts circulating the street, and the stock moves up closer to its 52-week high, it could force the buyout number to become even higher.
Looking at the 52-Week High of around $31.00, we do not see the company being purchased for much less than $31
Aluminum is HOT right now and will be into the future especially with Tariffs on China
If a China deal is announced, the deal should only help ARNC in the event the company is not purchased
EARNINGS ARE GREAT
Daily and Weekly Charts look BULLISH
POSITION: 150,000
PRICE: $20.52
