Sweet yield from Connor Bros.
A private equity firm recently (a little over a month ago) decided to make an offer to purchase all outstanding shares of Connor Bros (CBF.UN.T) at the price of 8.50. As of the writing of this blog post, Connor Bros is trading at 7.99 which is effectively 8% below the closing price (expected sometime in November) I've been adding aggressively to my position in Connor Bros last month particularly when there was a lot of talk of the deal possibly collapsing. At one point it was irrationally selling below 7.00. Anyway, for those that are looking to make a quick buck (8%) with minimal risk, this one may be worth looking at.
In addition to the 8% yield, the expected November distribution will be paid within 3 days of the closing of the deal.
The big risk in all this is the fact that the deal could still fall through. Worst case if the deal doesn't go through the stock will likely tank below 7 but the distributions would continue. The silver lining in the clouds is that if the deal doesn't go through there is the possibility of another bid.
Either way the risk of the deal not going through in my opinion is not very likely.
Disclosure: will look to purchase more if it stays below 8 or falls further below 7.50 on general market weakness.
In addition to the 8% yield, the expected November distribution will be paid within 3 days of the closing of the deal.
The big risk in all this is the fact that the deal could still fall through. Worst case if the deal doesn't go through the stock will likely tank below 7 but the distributions would continue. The silver lining in the clouds is that if the deal doesn't go through there is the possibility of another bid.
Either way the risk of the deal not going through in my opinion is not very likely.
Disclosure: will look to purchase more if it stays below 8 or falls further below 7.50 on general market weakness.
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