This post was just published on ZYX Buy Change Alert.

SNN  hit $100 target yesterday afternoon on rumors that MDT would make a bid.  SNN is long from $81.40.

There are more synergies in a buyout by SYK.  For this reason SYK may be able to pay a higher price. However a buyout by SYK may raise regulatory concerns.

In a bidding war, buyout price can easily go to $110-120.  But there is no guarantee that a transaction will be consummated, there is much higher risk in the stock now compared to when the position was entered. Therefore it is important to take partial profits.

What to do now?

Those in the stock and have taken partial profits may consider  continuing  to hold.

Those in the stock and have not  taken partial profits may consider  taking partial profits and  continuing to hold the rest.

Those not in the stock may consider a decision based on their own personal risk preference, most investors may consider not entering this position at this time.

For tracking purposes, taking profits on a 10% tranche around $100.