This post was just published on ZYX Buy Change Alert.
TE was bought less than three months ago at $19.67. 50% of the full core position size is being held. The company has received a cash buyout offer at $27.55 from Canadian energy company EMR.
TE is an electric utility. Electric utility buyouts take a long time to close, sometimes longer than one year. For this reason, the stock is likely to trade in the range of $25.50 to $26.75 for a while.
Please also note that there is a risk that the transaction may not close, however such risk in our analysis is less than 20%.
What To Do Now?
It is a matter of personal preference. Most investors may consider the following.
Consider scaling out of one-half the position on up-spikes in the zone of $26.18 to $26.73.
Consider continuing to hold the remaining 25%.
For tracking purposes, we will scale out of all on up-spikes.
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