Quote:
Originally Posted by Amnorix
Your philosophy is perfectly fine and I don't laugh at you at all, but in cases like this you're basically risking $1,200 for no good reason at all.
There's precisely TWO things that can happen here with Heinz. ONLY TWO.
1. deal closes. You make a buck more than you would have if you'd sold now.
2. the deal doesn't close, and the stock tanks. That second part isn't speculation. If the deal doesn't close FOR ANY REASON the stock will tank.
Given that, you can buy the shares back cheaper if the deal doesn't close so you don't miss your Dell opportunity. Of course, Heinz is to young electronic growth stock what Cassel is to young growing quarterbacks, but I digress...
So yeah, I think you need a small carve-out from your normal rule, and you can even include the caveat that you will buy back in with profits if the deal tanks.
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This is a good point. It's a very unusual situation to have a stock jump 20% in one day. I'm wavering. But I don't know, man. The key to having a system is to stick to the system.