Earlier this year, back in September actually, I got very excited over the acquisition of Shoppers Drug Mart (SC) by Loblaw. At the time, I saw a good opportunity to make money out of the deal, as long the purchase would be made below Loblaw acquisition price of $61.54. I bought my shares of $59.08 and since my purchase, I also earn dividend of SC. Cool, but now had came the time!
I had received a letter from TD Waterhouse. I have until December 30 to decided: to cash in $61.54 per SC shares I hold or earn 1,29417 shares of Loblaw (L) per SC shares I hold.
On today, Loblaw closed the session at $41.71. So let say that each share I hold of Shoppers worth 1,2917 shares of Loblaw at let say, $41.71, for a value of $2 698.99. On the other end, if I sell my SC shares for $61.54 per share, I will cash in $3 077, not including the dividend earlier earn.
Loblaw could be a good stock to hold on to, but I am very tempt to do like I first wanted to do: cash in $61.54 for every single shares of SC that I hold.
Nice, but there could be chances that not all of my shares of SC get sold and I could be left with a few shared of Loblaw - just like it happen with my TSX shares when the X got acquired by some Maple caca bankers. I am pretty sure I am going to place a sell order because its what I now want. I wouldn't mind to have a little left over of Loblaw in my portfolio.
I need to lower the usage of my margin anyway, so this sell option will just work fine for me.
Other extraordinary things, for one of the first time ever, I am in a positive territory with Heroux-Devtek Inc. (HRX). I made a profit of $2.66 on my shares... I had made $500 out of the special dividend payment of HRX. That was over a year ago, but ever since, I stick and hold tightly to my very precious HRX shares.
I have to say that I began to worry about my Saputo shares. The deal in Australia is taking long to happen. However, nothing is lost, it could go through.
So it all going well. If it wouldn't be of the stock market falling upside down, it would be ALL GOOD.
But hey, I guess pappy Gordon Pape little rich friends of the golf Club are buying stocks like crazy right now. Right pappy?