Wednesday, September 23, 2009

Shanda Spin-off (quicknote on GAME-ing the system)

SNDA spins-off IPO GAME, which should begin trading on Friday (it is due to price tomorrow; after the close I presume).

I wanted to reduce the SNDA position tomorrow, just ahead of that event, but it is running hard this morning and given I was more than double-normal on the long position, I bailed out on half today; 58.80.

I'm looking to hold the remainder (now 5.5% of accounts) into Friday and then blow-out the GAME holding once the new issue begins trading (should it open at a decent premium). I expect to hold SNDA from there, unless it trades poorly following the spin-off; I will blow it out same day in that case.

On a side note, NTES from the same group is breaking out today. If I were really bright I'd be long that name as well.

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