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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!)
Topics & Timestamps:
Please note: Exact times will vary depending on current ads.
- 01:55 – Assessing Takeover Announcements
- 06:50 – Binding vs Non-Binding
- 14:40 – Major Shareholders
- 24:15 – Following the Story
- 30:55 – Bid Price (Premium)
- 38:45 – Deal Terms
- 48:20 – Initiating a Position (Entry)
- 52:40 – Price Drift
- 1:01:35 – Key Milestones
- 1:05:00 – Corporate Law
- 1:10:30 – Booking a Profit/Loss (Exit)
- 1:14:00 – Bidding Wars
Luke Cummings: Chief Investment Officer, Harvest Lane Asset Management.
Links & Resources:
- The Little Book That Still Beats the Market | Joel Greenblatt [Amazon]
- You Can be a Stock Market Genius | Joel Greenblatt [Amazon]
- Towns Under Siege | Tony Damian [Sydney University Press]
- M & A Strategy: Case Studies | Harvest Lane [PDF]
- Risk Arbitrage | Guy Wyser-Pratte [Amazon]
- 031: Luke Cummings [Chat With Traders]
- @LukeCummings81 [Twitter]
- HarvestLaneAM.com.au
- Takeovers.gov.au