This post was just published on ZYX Buy Change Alert.
Super computer maker Cray (CRAY) has a $35 cash buyout offer from HPE. There is a 35% probability of a higher bid. In case of a bidding war, price can go as high as $45. Normally a 35% probability does not generate a buy signal. However here there is a 95% probability that the deal with HPE will close at least at $35. This makes the probability adjusted risk reward favorable.
CRAY is trading at $35.21 as of this writing. The buy zone is $34.20 to $35.26, preferably on dips below $34.76. Consider limiting the quantity to 30% of full core position size. The mental stop zone is $32 to $33.23.
Caution: There is no free lunch. Consider not going overboard with the quantity because there is a 5% probability of the deal not closing. If the deal does not close and there is no higher bid, the stock will likely open gap down and a stop loss may not protect you.
A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.
Please click here to take advantage of a FREE 30 day trial.
Check out our enviable performance in both bull and bear markets.