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.
As always there is no guarantee that a buyout will happen. If a buyout does not happen the stock will fall.
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This post was just published on ZYX Buy Change Alert.
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