Corporate Actions

ASX Event Strategy

3 Dec 2019
The ASX Event strategy is our longest-running strategy that invests in corporate actions. Usually, this takes the form of takeovers from which we hope to make a low-risk arbitrage profit.

Latest Update – 11 November 2019

The following trades are currently open. Please click on the links below to find out more information about each trade.

QMS – potential for higher bid.

WBA – low risk, short term arbitrage

OMN – medium to high risk opportunity

BAL – medium risk arbitrage

Stock codeStock nameQtyEntry dateEntry priceCurrent priceCurrent valueReturn percentageNotes
Bellamy's Australia
38916 Sep 19$12.85$13.24$5,150.363.04%
Vote 'FOR' Scheme
ERM Power Ltd
2,04022 Aug 19$2.45$2.42$4,936.80(1.22%)
Await Payment
5,3191 Oct 19$0.94$0.96$5,106.242.13%
Buy No Higher Than $0.935
Pacific Energy
5,1026 Aug 19$0.98$1.06$5,408.128.16%
Await Payment
QMS Media Ltd
4,08131 Oct 19$1.23$1.20$4,897.20(2.44%)
Buy No Higher Than $1.225
Webster Ltd
2,5774 Oct 19$1.94$1.97$5,076.691.55%
Buy No Higher Than $1.94

*Quantities are based on investing $5,000 per stock on the entry date

ASX Event Strategy

The Event strategy targets a reasonably low return (~6% per annum) but with very low risk. All-cash takeover offers are the ‘bread and butter’ of the strategy and can often provide a healthy annualised return with a small chance of failure. Other possible investments include share buybacks where franking credits provide the profit opportunity and different special situations where there may be an arbitrage profit.

How To Follow This Strategy

Rivkin’s strategies are designed to be as easy as possible for investors to follow. To follow the ASX Event strategy, investors need to buy the securities in the above table for which there is still an open recommendation (do not buy into recommendations that contain ‘hold’ or ‘sell’ in the recommendation text column). The volumes shown in this table are based on a $5,000 investment per trade.

About The Strategy

The ASX Event strategy has a history going back to the formation of the Rivkin business but was turned into a formal strategy in 2017. Please click here to find out more about the strategy.

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