The stock market is very hard these days. Gold and silver, as well as oil are all the way down, creating a difficult climate for investing. Nothing is easy these days. In the circumstances, I guess that my portfolio is doing ok.
This pas Friday, I learned that BCE is going to acquired Glentel Inc. (GLN). For the acquisition, BCE ill give a mix of $26.50 per GLN share and a mix of BCE share. When I learned he news, LN was trading at $25.90 so I jumped in. I bought some Glendel Inc. (GLN) inside my TFSA - since I had over 2k in cash being to be invest in whatever I wanted. I also made a small investment inside my non-registered account.
The deal should go through in the first quarter of 2015 from what I understand. I guess I will be receiving a voting paper soon. And if so, I will go with the option for a maximum of cash. At the most, I will be making a bit more than $60 after commission fees with those 2 investments move. Not much. If you have some cash hidden somewhere, you may like to jump in Glentel Inc. (GLN) now because its will probably trade lower than $25.90 this upcoming Monday. You won't be able to say that I never give great investment tips on this blog!
So go get your hands on some Glentel Inc. (GLN) stocks now before its too late!
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7 comments:
What if for any reason this deal doesn't go through. This was trading at 12$ before. 2% upside is not worth the risk of 50% downside. You are better off buying bce.
So you're making 60 cents per share?
Guess it's okay for parking money for a bit, seems like all long term holders are now leaving...
There is a TINY chance it might not go through, but I'm sure everyone will vote and take the money 121% increase in share is huge!
You are taking high risk DG. If the deal doesn't go well, then you will lose much bigger %. Just buy high quality dividend stocks like ENB, CNR , etc and sleep well withought thinking about investment.
I take it for cash and I think the deal will happen asannounced.
Glentel is majority family owned stock - they are for the deal, so on that front, it will go through. I am holding glentel, and will be converting to BCE - it is better than the cash alternative.
You could buy Talisman Preferred shares (TLM.PR.A0 which currently trades at 23.79 and when the buyout is done next year it will be bought out at 25$ plus it will pay a 26 cent dividend in march for a total return of 6%. That is better than the 2% return on GLN which is being challenged in court by Roger's. Of course there's no 100% guarantee that the transaction will go through as anything can happen.
Of course if you bought this today you could make over 11% return as it's only trading at 23.80. Now that's a better return than 2%. I would never buy a stock for a 2% return. I'd rather put the money in a savings account.
You always have to look at risk/reward. Anything can happen on the stock market and you should always expect the unexpected.
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