Edited:
I first learned about QCOR when I was looking at the 13/F filings of some health-care focused hedge funds. I read the latest 10-k and 10-q and began doing my research on the company. This was in early August 2012 and the stock was trading in the mid-50s.
Just as I was starting to get a pretty good understanding of the market and the economics of the business, the stock tanked in late-Sept 2012 due to the health insurer Aetna announcing that it was going to limit reimbursements for the company's flagship drug product and also because of a pending government investigation into the promotional practices of the company.
Although I wish I could have done more research, particularly in the company's marketing/promotional practices, I felt I had enough information to make my play. The stock was at around $28 to $30 when I applied to my bank's compliance to get pre-clearance approval. By the time I was able to initiate the trade with my broker, the stock was trading below $20. I got in at $18, essentially catching the stock at the bottom.
Fast forward a year and a half to this morning. I get into the office and before things start getting hectic at work I see the headline that the company is being acquired by Mallinckrodt for $5.6 billion. Pre-market activity shows the stock is up 30%. As soon as I saw the announcement I thought the timing was perfect and I immediately went to my broker and sold everything.
To summarize, I had bought shares back in Sept 2012 at around $18. I sold everything today at $85. So I netted a pretty good gain and was very feeling good about myself. Now I am starting to have some thoughts about rebuying and holding on through the merger.
I am treating this as a learning experience so any advice/words of wisdom you could offer up would be greatly appreciated.
Only a five-bagger? Embarrassing. Delete your post immediately.
Yep, you should probably quit finance and never buy a stock ever again.
maybe I'm missing something here, but the market should've priced that option in once the stock started trading (or got pretty close to it). When you sold the stock, you had the option of getting $ and betting on another company OR getting your cash now, would've been a pretty safe arb opp if the stock hadn't priced the extra $ in
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