Each trading day can bring new experiences. I have heard of halts happening before with stocks that have gone bankrupt, but never with the news of a merger. I was out all day yesterday waiting at the OB/GYN office for my appointment and once I was done I checked the stocks ending strong for the day.
I stopped at the grocery store and in the car at the parking lot I discovered $ENH. Sure enough I saw the initial spike and and entered after the pull back and made a quick $250 on the bounce. I went in bought groceries for dinner and checked it again before heading home. Sure enough it pulled back again. I saw it hit almost 89 and pull back so I entered at $88.44. I went on my way home and unloaded. By the time I was back on my phone checking the stock before close I saw it was halted. They halted it at 3:32 due to the more than 35% increase in value and waiting for further news confirmation about the speculation of the merger.
Before I went back into it the second time I did more research about the speculative offer price of $6.4 Billion and the out standing float of 67.58 Million. Some quick math and it gave me rough merger price of $94 a share. So I thought what a deal at $88.44.
After putting our daughter down to sleep, I diligently checked the news. I went to see what time the halt was lifted which was 4:11 pm. I had also seen that Endurance Holdings had put out a press release stating that they were in final stage talks with Sompo. At that point I was still a bit unnerved by the halt. I knew that Sompo was going to release the news Wednesday afternoon their time in Japan, so I would wake up to the news.
In hindsight I don’t think the NYSE would have lifted the halt if they new that the news was all speculation. It did not occur to me until the morning and I saw the confirmed news that the buyout was going through at $6.3 Billion for a share price close to $93. It was great news to wake up to knowing that the gap up was definite based on the news.
I sold on open at 91.61 to go ahead and lock the profit. $3.17 profit per share which was not too shabby for a strong momentum overnight swing stock. I am finding that I enjoy the overnight swing trades with waking up to profits with the stocks that are continuing based on the overnight interest.
These overnight swing trades are becoming a strong strategy for me especially the earnings winners that tend to be strong for a couple days.
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