EP 222: Mergers & Acquisitions: The Ultimate Game of Poker w/ Luke Cummings
Returning to Chat With Traders podcast, Luke Cummings—CIO of Harvest Lane Asset Management—details his funds’ core strategy of trading mergers and acquisitions…
Step-by-step, Luke explains his methods of assessing a takeover bid when it first hits the market, initiating a position, monitoring news flow, and ultimately, booking a profit/loss when the change of control takes place (or the deal falls through!)
00:00 – Intro
01:55 – Assessing Takeover Announcements
06:50 – Binding vs Non-Binding
14:40 – Major Shareholders
24:15 – Following the Story
30:55 – Premium: Bid Price
38:45 – Deal Terms
48:20 – Entry: Initiating a Position
52:40 – Price Drift
1:01:35 – Key Milestones
1:05:00 – Corporate Law
1:10:30 – Exit: Booking a Profit/Loss
1:14:00 – Bidding Wars
1:16:35 – Outro
Show notes:
https://chatwithtraders.com/222
#Takeovers #MergerArbitrage #StockMarket
