3 Dec 2019
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.
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
| Stock code | Stock name | Qty | Entry date | Entry price | Current price | Current value | Return percentage | Notes |
|---|---|---|---|---|---|---|---|---|
BAL | Bellamy's Australia | 389 | 16 Sep 19 | $12.85 | $13.24 | $5,150.36 | 3.04% | Vote 'FOR' Scheme |
EPW | ERM Power Ltd | 2,040 | 22 Aug 19 | $2.45 | $2.42 | $4,936.80 | (1.22%) | Await Payment |
OMN | Onemarket | 5,319 | 1 Oct 19 | $0.94 | $0.96 | $5,106.24 | 2.13% | Buy No Higher Than $0.935 |
PEA | Pacific Energy | 5,102 | 6 Aug 19 | $0.98 | $1.06 | $5,408.12 | 8.16% | Await Payment |
QMS | QMS Media Ltd | 4,081 | 31 Oct 19 | $1.23 | $1.20 | $4,897.20 | (2.44%) | Buy No Higher Than $1.225 |
WBA | Webster Ltd | 2,577 | 4 Oct 19 | $1.94 | $1.97 | $5,076.69 | 1.55% | 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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