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Something for the weekend


dgul

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I've got one particularly speculative trade on at the moment -- sports direct.

SPD have been doing a share buyback over the last month, and the size of it is ginormous -- they've been about 1/3rd of the market since they started it (late July).  The buyback stops Friday.  Anyway, I've just started a short on it.

There is a gotcha with this trade, in that i think there's a big chance that MA will announce a takeover (taking it private) at some point soon.  Now, I think this is all part of the strategy -- buy back, support the market, stop the support, watch prices crash, take private*.  So, I'd suggest there's a need for a proper stop-loss (insured)

[* I'd note that this would be illegal, but MA is MA].

Also, there's every chance that they'll announce something crazy, like extending the buyback (that would be crazy, but so is the share buyback in the first place -- it is MA after all).

[I'd also note that the buyback stops Friday -- but I have a feeling that it'll be a rumour/news thing -- we'll see]

Anyway, I've no idea what'll happen, but as of this morning it is on.  Hope I don't get too burned...

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