Luminex Corporation (LMNX) has become a buyout target. There is an 80% probability of a deal ultimately happening. LMNX is trading at $32.09 as of this writing. The most likely acceptable bid is in the zone of $38 to $42. If a bidding war erupts, the stock can go higher.
In the world of investing there no free lunch. The issue here is that the stock can easily trade in the range of $21 to $34 in the interim. A good way to handle this situation is to scale in with small tranches such as 5%. The maximum recommended quantity is 50% of full core position size. Consider reducing the maximum quantity based on your personal risk preference given that the stock can trade over a wide range. The buy zone at this time is $25.31 to $32.52.
The stop zone is $19.18 to $19.78.
It may take several months for an acceptable buyout offer to come through.
162 of Arora Report Portfolio companies have been bought out producing a fortune for long-time subscribers.
Caution
As always there is no guarantee that a buyout will happen. If a buyout does not happen the stock will fall.
To take a free 30-day trial to paid services to gain access to more opportunities, please click here.
This post was just published on ZYX Buy Change Alert.
Markets can generate substantial wealth for knowledgeable investors. 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.
