Now what: This move isn't terribly surprising, as Constant Contact and Endurance are well aware of their synergy potential. The two companies most recently rolled out a strategic partnership in May, for example, that helped bring a significant number of new email service customers to Constant Contact.
That was a step in the right direction for Constant Contact as it coped with slowing growth, but it wasn't enough to help the company avoid reducing its full-year outlook for the second time in as many quarters in July. Keep in mind that even after today's pop, shares of Constant Contact still sit around 13% lower than they started the year, and the deal still requires the approval of Constant Contact shareholders to proceed.
Nonetheless, according to Endurance's press release, the transaction is expected to close in the first quarter of 2016. With shares now trading within pennies of the proposed acquisition price, I think Constant Contact shareholders would be wise to take their quick profits off the table and put them to work elsewhere.
People have a short attention span. I think I can already see the share price eroding today as people might profit take and turn thier attention to somewhere else as this wont be happening for a while.
You can see a bit of slippage today. If that happens in one day, I think that we can make some money off of some cheap ass options. Its worth a gamble. We will be betting on the 30 December puts:
There you go. I would put success with this one at a 40%-50% range. However, the puts are dirt cheap and if the stock starts to wander south of 30, this could be a 2, or a 3 bagger. Seeing that our in is .10, if this just moves to .20 thats 100%.
Tradinginsider
.png "English"){kind=small}
0 comments:
Post a Comment