Strategy
Events Trades
Australia

ASX Event Strategy

23 Nov 2020
By
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.

Minimum Investment Amount and Period

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.

Period

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.

Stock codeStock nameSectorCurrent priceReturn 12mMom rank
NVDA
NVIDIA Corp
Information Technology
$549.46214.71%
1
AMD
Advanced Micro Devices Inc
Information Technology
$84.48199.75%
2
DXCM
DexCom Inc
Health Care
$374.89177.95%
3
ETSY
Etsy Inc
Consumer Discretionary
$134.56144.28%
4
AAPL
Apple Inc
Information Technology
$113.16113.35%
5
REGN
Regeneron Pharmaceuticals Inc
Health Care
$581.64107.25%
6
SWKS
Skyworks Solutions Inc
Information Technology
$147.27101.64%
7
WST
West Pharmaceutical Services I
Health Care
$290.33100.43%
8
NOW
ServiceNow Inc
Information Technology
$491.5499.52%
9
PYPL
PayPal Holdings Inc
Information Technology
$191.6697.47%
10
NFLX
Netflix Inc
Communication Services
$505.8796.81%
11
QRVO
Qorvo Inc
Information Technology
$131.0889.28%
12
AMZN
Amazon.com Inc
Consumer Discretionary
$3,099.9688.02%
13
ADBE
Adobe Inc
Information Technology
$478.9887.32%
14
CTLT
Catalent Inc
Health Care
$88.8583.45%
15

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.

Important notice:

Quantities and calculations in this post use the Rivkin Model and might differ from yours. This post does not constitute an invitation to buy or sell any securities. Before conducting any transaction, make sure you fully understand the terms of the product and the relevant risk factors involved. You can seek professional advice to determine the appropriateness and cost of any transaction from the broker you use.

SHOW COMMENTS / QUESTIONS (6)

6
Comments

You need to be a Strategies user to comment on this post. Click here and become premium now!

Dennis T.

Hi Guys,
is AYS still a short term hold, as I noticed in the papers yesterday they were suggesting that it might not be settled until October?

Terry W.

PNC share price lifted Fri and Today 12th Oct. Anything behind this ?

Anonymous User

The latest takeover offer for Cardinal Resources (CDV) by Shandong Gold (30/07/20) is for $0.70 per share, but this morning it is still trading at $0.71. What is going on here?

Shannon Rivkin

Hi,

The reason the stock remains above the takeover offer price is because there is a good chance that original bidder Nord Gold still comes back with a new bid.

Regards,
Shannon Rivkin

Anthony D.

I see that ZEN has gone into a trading halt this morning. Is there anything in your crystal ball on what they may be going to announce.?

Shannon Rivkin

Hi Anthony,
My best guess is that the trading halt is to allow the bidder and shareholder holding out for a higher offer the opportunity to negotiate a price that would be accepted. All things being equal, this is a pretty good sign.
Regards,
Shannon Rivkin

We are glad you liked it

For your convenience, this will appear under your Saved articles in the top menu.