# Daylight Energy Limited (DAY.TO)



## Betzy (Feb 7, 2011)

Been looking at this one for a while, anyone have insight?
I really like the DIV they have.
thanks


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## Sherlock (Apr 18, 2010)

I wanted to buy it a while ago but had no extra cash. I think now might be a good entry point. What's everyone think?


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## martinv (Apr 30, 2009)

Watching this one for a while as well.
Finally bought on Monday, August 8th @ 7.61 for a dividend of 8%.
I usually don't sell a stock for 5 or 10 years unless there is a "fundamental" change. But then we don't know what life may throw at us tomorrow, need for money, health etc.
No one knows what the stock price will do tomorrow either.


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## w0nger (Mar 15, 2010)

i initially entered this at 8.31 a few months ago and recent bought again at 7.90 and again at 7.70. I've held a position DAY for a total of 4 months now and i expect to hold it for atleast 3-4 years, i have it setup on a DRIP because you get a 5% discount on the share price. I hold half in my RRSP and half in my TFSA. I may just hold this forever. I've read that LNG is slowly becoming a practicle fuel and their oil play will continue to support the business while NG has depressed value. 

i think this may become a long hold for me.


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## Betzy (Feb 7, 2011)

I jumped in today at $6.89 with a 8.7%div.


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## al42 (Mar 5, 2011)

Betzy said:


> I jumped in today at $6.89 with a 8.7%div.



Should be OK, I've been in this for a while now and taking a pretty good beating.

http://www.daylightenergy.com/en/presentations/corporate_presentation_aug_24_2011_final_2.pdf


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## w0nger (Mar 15, 2010)

i'm getting hit hard... it's a good thing they pay dividends... if i had more money i'd increase my holdings but i don't, guess i'll have to hold out for a while. If they do happen to drop into the $5 range, i maybe have to pull the trigger and sell something else to buy... i like DAY...


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## Sherlock (Apr 18, 2010)

I bought last week at 7.40.


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## jamesbe (May 8, 2010)

I bought some today at $7.02 Wanted to yesterday but missed the market close


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## Awnedion (Sep 14, 2011)

Maybe I'm missing something since I've only just started to look at dividend stocks but isn't it not good to rely on dividends for stocks with negative earnings per share? They're paying 60 cents per share a year for dividends and are losing 3 cents per share for the year from losses. Surely they cannot sustain these dividends for long?

What am I not seeing in DAY?


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## daddybigbucks (Jan 30, 2011)

I'm on the fence with this one.


It sure does look tempting at this price and yield.

I find it hard to read their financials at a quick glance,but i think i am going to give it a bit more time.


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## Homerhomer (Oct 18, 2010)

At first glance they are:

1) loosing money more often than making
2) they are paying out more in dividends then they bring in profit
3) they are financing the dividends with drip and new share issuance, the shares number increases every single quarter diluting the earnings (whenever there are earnings) and making them payout more in dividends as the number of shares increases.
4) the dividends are decreasing each year for the last 6 years.

This is enough for me to stop right there and not even look any deeper.

All that is based on globeinvestor website, I wouldn't touch it and wonder why are others interested in it? The share prices takes a beating as it should.


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## daddybigbucks (Jan 30, 2011)

Homerhomer said:


> I wouldn't touch it and wonder why are others interested in it? .


I dont know about the others, but i sometimes get blinded by a 52 week low and a juicy dividend.


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## w0nger (Mar 15, 2010)

my belief is that they are getting hammered because of the low prices of natural gas... but they do have some exposure to crude oil as well. DAY is actually my gas play and i'm in for the long hold... if they do tank... well... it's still a small part of my portfolio, but in the mean time, i'm still getting a roughly 7% yield at my buy-in price. 

True that their recent EPS is negative, however their 5-year EPS growth has been about 85%... i'm hoping they can continue their growth into profitability. 

worse case... if and when i do my next buy, perhaps i'll do a covered call with a collar strategy to lower my cost base and try and eliminate some downside risk...


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## humble_pie (Jun 7, 2009)

i've never held DAY but notice it's always well spoken of by analysts.

homerhomer's points are certainly valid; however what comes to mind is that many other canadian energy companies suffer from the same syndrome - low earnings, dividends too high & not supported by earnings and/or declining dividends since the era when they were energy trusts.

the stock answer is that these companies are surviving but paying their dividends out of cash flow. Daylight says they are gradually using up but still have big tax losses on the books to carry forward for several more years. These losses would be artificially depressing earnings imho.

other positive thoughts from a quick birds-eye view: competent & experienced management plus close narrow focus upon highly prolific districts in NE bc & NW alberta - contrast this latter with talisman which is imho too spread out over the planet.

if i owned DAY, which alas i don't, i don't believe i would bother to collar (puts in these times are far more expensive than calls.) The dividend is good. I'd just wait patiently.


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## Toronto.gal (Jan 8, 2010)

humble_pie said:


> contrast this latter with talisman which is imho too spread out over the planet.


I just checked the price for TLM, $14.65, wow, I didn't realize it had tumbled so much as I sold it in the $20's some months ago. 

Thanks for reminding me that I made a great decision having sold TLM & ECA; the latter too has been so battered. Had not followed these 2 since I sold, but perhaps is a good time to make my way back in slowly but surely as they are at almost 52 week low. 

I never did follow DAY, but I will look into it as I'm intrigued now.


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## Homerhomer (Oct 18, 2010)

humble_pie said:


> homerhomer's points are certainly valid; however what comes to mind is that many other canadian energy companies suffer from the same syndrome - low earnings, dividends too high & not supported by earnings and/or declining dividends since the era when they were energy trusts.
> 
> the stock answer is that these companies are surviving but paying their dividends out of cash flow. Daylight says they are gradually using up but still have big tax losses on the books to carry forward for several more years. These losses would be artificially depressing earnings imho.
> 
> .


Yes, I realize that, however unlike other companies in similar situation, let's use our darling CPG as example where dividends steadily increasing or at least maintained, or other companies which cut their distributions once upon conversion (which is quite understandible due to differences in structure between corporation and trusts), DAY is cutting distributions every single year since 2006, perhaps indicating that not only the earnings but the cash flow as well can't support the payouts.

Just my 2 cents.


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## Potato (Apr 3, 2009)

Homerhomer said:


> DAY is cutting distributions every single year since 2006,


Well, it's not every single year, but they have cut back a lot on their dist. But that makes sense since their production is composed of a lot of natural gas, and their payout tracked natural gas prices pretty decently:

As prices ran up in 2005, they raised the dist in 2005, and again in 2006. Prices pulled back in 2006 and stayed "low" (we'd see in 2010 just how low low could be) through 2007, so they cut the dist twice in 2007. In 2008, nat gas prices ran up again, and again they raised the dist... but then prices came crashing back down in late 2008 to find new lows in 2009, and the dist was cut again in 2009. Then they converted from a trust and cut it again, and it hasn't changed since conversion.

So where do you think energy prices are going? I can't remember what their hedging book looks like, but it's likely that if natural gas stays this low for much longer another cut may be in store. On the other hand, if natural gas increases in price, a dividend increase could follow a few months afterwards.


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## humble_pie (Jun 7, 2009)

cpg is a good example since, although 100% a light sweet oil play with no gas, there are certain rough similarities to day in the profile that regularly come up for similar criticism.

one is dilution caused by dripped dividends. Another is earnings that appear insufficient to pay the dividend, although cash flow is locked in via extensive hedging program. Debt increases as time passes but assets increase more or less at the same pace. In recent years, cpg financing has been accompanied by significant acquisitions.

i've held cpg since it was a trust; started in my rrsp but all shares are now in non-registered. Dividend has never changed. Steady as an elephant's heartbeat. Twenty-three pennies, ta-dum, ta-dum. I sell call options, too; but not puts since the holding is already a bit excessive.

looking out over the energy field - for those who believe the world can yet be saved - there are some fine bargains. Whoever heard of cnq around $35. Not in years.


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## londoncalling (Sep 17, 2011)

I have held a position in this stock for a while mainly because of the dividend which has been tied to the price of natural gas. According to this report the dividend yield will not be cut... Take it for what it's worth. I believe that if gas ever does climb the stock will also take off. If not then macro events will continue to keep it at this level. Just my opinion.


http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3661460


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## Betzy (Feb 7, 2011)

Another 52 week low for DAY, figures just after i buy 100 shares
Guess I'll enjoy those juicy 7%dividends only for now...


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## bigpun87 (Aug 17, 2011)

hit hard today!!


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## jamesbe (May 8, 2010)

Everything was hit hard though 

Energy will come up ... eventually it always does.


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## gibor365 (Apr 1, 2011)

What happened with DAY last several days? Whay it hit so hard? I couldn't find any news....


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## daddybigbucks (Jan 30, 2011)

gibor said:


> What happened with DAY last several days? Whay it hit so hard? I couldn't find any news....


I think all high yielders are getting hit. 
I compared DAY with my beloved SPB and their fall is almost in sync, yet they are two completely different companies.

i think this is a big correction for all high yielders that are paying out over 50% AOCF. With no back support and the lingering recession, people are getting out.

Maybe the new low will stay for a while. I sold a few shares and will hopefully buy again in a few months to try and hedge this downward spiral.


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## Homerhomer (Oct 18, 2010)

Investors are anticipating another dividend cut, it's a dog with flees.


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## gibor365 (Apr 1, 2011)

daddybigbucks said:


> Maybe the new low will stay for a while. I sold a few shares and will hopefully buy again in a few months to try and hedge this downward spiral.


[email protected] it's going lower and lower....even today ... I was thinking 2-3 days ago to seel DAY and buy HEE instead , but I was so much down on this one that decided not to sell... again bad decision, HEE was soaring today ...


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## jamesbe (May 8, 2010)

Lost 35% in a month, eeks


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## ddkay (Nov 20, 2010)

Wow what's going on here, are investors pricing in a dividend cut or a bankruptcy??


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## bigpun87 (Aug 17, 2011)

i dropped DAY today...today was supposed to be a big rally for oil companies and DAY had almost no gains.. granted they are primarily natural gas, but they should have benefited more than they did..


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## Sherlock (Apr 18, 2010)

Yes buy high and sell low, that's smart...


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## jamesbe (May 8, 2010)

^ LOL

I only put a grand on it, so I'll wait it out.


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## al42 (Mar 5, 2011)

I knew that I should have bought more at those low prices. 
Oh well.

Press release from Marketwire
Daylight Energy Ltd. to be Acquired by Sinopec International Petroleum Exploration and Production Corporation

Sunday, October 09, 2011

CALGARY, ALBERTA--(Marketwire - Oct. 9, 2011) - Daylight Energy Ltd. ("Daylight" or the "Corporation") (TSXAY) is pleased to announce that it has entered into an agreement (the "Arrangement Agreement") with Sinopec International Petroleum Exploration and Production Corporation ("SIPC") for the purchase of all of the issued and outstanding common shares of the Corporation (the "Common Shares") at a cash price of C$10.08 per Common Share, for total cash consideration of approximately C$2.2 billion. The transaction is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). The consideration offered for the Common Shares pursuant to the Arrangement represents a 43.6% premium over the 60-day weighted average trading price of the Common Shares on the Toronto Stock Exchange up to and including October 7, 2011. SIPC is a wholly owned subsidiary of China Petrochemical Corporation ("Sinopec Group") and undertakes overseas investments and operations in the upstream oil and gas sector. Sinopec Group is China's largest producer and supplier of oil products and major petrochemical products.

http://www.theglobeandmail.com/glob...20111009&archive=ccnm&slug=201110090734604001


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## gibor365 (Apr 1, 2011)

al42 said:


> I knew that I should have bought more at those low prices.
> Oh well.
> 
> Press release from Marketwire
> ...


I hold DAY...can anyone please to explain me how it's gonna affect me? and what I should do? 

Also how nwxt statement will affect stock?
_"The previously announced $0.05 per Common Share dividend payable to holders of record on September 30, 2011 will be paid on October 17, 2011, but under the Arrangement Agreement Daylight has agreed to suspend future dividends."_


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## londoncalling (Sep 17, 2011)

If/when the deal goes through you will get $10.08 a share.

Until the deal is completed you will no longer receive anymore dividends aside from the Sept div paid in Oct.

For me it means a small profit of 4.91% after divs as my ACB was at 9.75/share


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## gibor365 (Apr 1, 2011)

londoncalling said:


> If/when the deal goes through you will get $10.08 a share.
> 
> Until the deal is completed you will no longer receive anymore dividends aside from the Sept div paid in Oct.
> 
> For me it means a small profit of 4.91% after divs as my ACB was at 9.75/share


Couple of newbie questions:
1. When deal is expected?
2. When deal is done, all my chares will be automatically sold? 
3. Will trading continue until deal is done?


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## Eder (Feb 16, 2011)

Grats to all the bottom feeders that are rewarded here. My thoughts are to sell on Tuesday...I don't think there's upside and lots of downside.


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## gibor365 (Apr 1, 2011)

Eder said:


> Grats to all the bottom feeders that are rewarded here. My thoughts are to sell on Tuesday...I don't think there's upside and lots of downside.


Can you explain whay to sell on Tuesday, if you are promissed to get 10.08 per share? 
I never held company that was sold and have no idea what is the impact...


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## Betzy (Feb 7, 2011)

What the hay? Sell on Tuesday? Bottom feeders?? I resent that, I bought after researching and watching this for six months. Makes no sense to me to sell before i find out what are my options and the process of something like this...


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## Abha (Jun 26, 2011)

Betzy said:


> What the hay? Sell on Tuesday? Bottom feeders?? I resent that, I bought after researching and watching this for six months. Makes no sense to me to sell before i find out what are my options and the process of something like this...


Read the terms of the offer. If there's no penalty for the buyer withdrawing I'd sell right away and take your instant profit. If there is a guarantee (like HP and their super expensive purchase of Autonomy) then just wait it out.


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## daddybigbucks (Jan 30, 2011)

Betzy said:


> What the hay? Sell on Tuesday? Bottom feeders?? I resent that, I bought after researching and watching this for six months. Makes no sense to me to sell before i find out what are my options and the process of something like this...


congrats there Betzy.
you doubled up in a couple weeks.
that doesnt happen too often.

kicking myself for not buying. i sold out about a year or so ago at 10.50


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## al42 (Mar 5, 2011)

Abha said:


> Read the terms of the offer. If there's no penalty for the buyer withdrawing I'd sell right away and take your instant profit. If there is a guarantee (like HP and their super expensive purchase of Autonomy) then just wait it out.


The break up penalty is 100 million.

The Arrangement Agreement contains a reciprocal non-completion fee of C$100 million,
which is payable by either party in certain circumstances if the Arrangement is not
completed.

I for one am setting my sell price @ $11.50 just to punish the shorts that have held on this long. They deserve to be punished hard for all the damage they have done and are still doing in the markets. Hopefully others will see it the same way.


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## Eder (Feb 16, 2011)

Betzy said:


> What the hay? Sell on Tuesday? Bottom feeders?? I resent that, I bought after researching and watching this for six months. Makes no sense to me to sell before i find out what are my options and the process of something like this...


Sorry...my reference to bottom feeder was a compliment. 
I'll sell Tuesday since I believe in the long run it's better to take the money and run rather than stick around for a few more points at the risk of the deal getting pooched.


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## humble_pie (Jun 7, 2009)

"a few more points" could only appear if a rival offer appears, which is unlikely since sinopec has offered all cash at such a flabbergasting price. Who's going to beat that.

the greater risk then becomes evaporation of the deal ... a 100 million breakup penalty is far too rich imho, probably applies only in exceptional circumstances ... (suggestion) holders of day should read the fine print of the offer for themselves, not depend here on 3rd hand opinions ...

re any call options anyone may be holding long ... if these were atm when purchased they've now become 100-delta options & have close-to-doubled (yay) & will henceforward trade dollar-for-dollar with the stock (yay) ... don't even think of exercising these, takeovers are not situations where investor can sit around waiting 3 days for assignment to be carried out in slow motion ... long calls are to be sold, the only question is timing ...

call options will float w the stock & even minutes ahead of new rumours long call holders are going to see the option BAs adjusting ... bref long call holders should hover over their options paying strict attention minute-by-minute & should probably sell the calls as a first step in any decision to dispose of the holding.

congratulations to the winners here. Long energy players who don't hold DAY can also rejoice since this is a distinctly bullish development


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## w0nger (Mar 15, 2010)

w00t


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## gibor365 (Apr 1, 2011)

I'm more and more confused....

Should I expect tomorrow price for DAY will be $10.08? (price of agreement)

Betzy, what you gonna do with DAY?

P.S. My book value was pretty high, so for $10.08 I will book just small profit.

The DAY buyer is not on TSX, so I must sell at some point?


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## humble_pie (Jun 7, 2009)

in less than 19 hours a starry-eyed cmf forum is going to see options that have quintupled since friday. Sextoopled, septoopled, octoopled, even.

woo hoo.


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## jamesbe (May 8, 2010)

Now I wish I had bought more, only bought a grand at $7.00. Still made out well I suppose!!


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## humble_pie (Jun 7, 2009)

gibor if day trades below sinopec's offer price tomorrow, it'll be because mr market sees probs with the deal. Most likely to do with review by canadian investment review agency, possibility they might scupper the deal.

on the other hand if day trades above, it'll be because veteran M & A players detect a competing (higher) offer is coming.

if CIRA approves the deal you will probably have no choice but to tender to the offer. If sinopec gets 66.666% tendered (they will) they can force a majoriity. If they get 88% tendered (they will) they can force all the rest, ie force the 100% ownership which they are seeking.

your broker's reorg dept will send you a notice telling you what to do if you wish to tender.
. 
at all times prior to tendering, you will have the option to sell into the public market. Once you've tendered, it's difficult to change one's mind, although there are new regulations (i believe) that make it possible to un-tender, ie cancel one's tender.

what i would do is make no decision until after markets open tomorrow am. The trading price trajectory tomorrow will tell the story, not remarks from anonymous message boards.


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## humble_pie (Jun 7, 2009)

sinopec must be counting on a future LNG deepwater port at kitimat bc for export to asia. Here's a wrapup piece with excellent updates:

http://www.theglobeandmail.com/repo...zero-in-the-race-to-fuel-asia/article2195213/

green light signal: some 1st nations over whose lands a pipeline to feed a kitimat LNG terminal would have to pass are saying they'd approve a gas pipeline but not an oil pipeline ... something to do with perception that gas leaks are less toxic than oil leaks.


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## Potato (Apr 3, 2009)

gibor said:


> Should I expect tomorrow price for DAY will be $10.08? (price of agreement)


Well, in the US pink sheets version of DAY (DAYYF, which is trading today), the price is hovering around $9.95-10.08 (after factoring in the currency exchange), so that's a good indicator of what tomorrow will likely bring on the Toronto exchange. If there were a lot of shorts, there could be a short squeeze, which may send the price higher than $10.08. 

Myself, I'll be busy most of the day, so if a short squeeze doesn't materialize by about 10am, I'll likely just take anything over about $9.95, and let the arbs play with the rest.


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## jamesbe (May 8, 2010)

So if I set a sell price tomorrow in the $10 range and I sell. Will I still get the dividends on oct 17th?

Is there any reason to hold onto them? At $10.08 I made $459 in a month, woot.


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## gibor365 (Apr 1, 2011)

jamesbe said:


> So if I set a sell price tomorrow in the $10 range and I sell. Will I still get the dividends on oct 17th?
> 
> Is there any reason to hold onto them? At $10.08 I made $459 in a month, woot.


Yes, you will get dividends.

I think to set sell price for 50% of the shares at 10.06-10.07 and wait with rest...


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## Betzy (Feb 7, 2011)

So if i understand we just wait and see what the stock does and sell if it hits our 10.08 or more?
I am still confused, going to call broker this eve or tomorrow am...
I bought 1000 shares at 6.89 sept 15th and the call option(10 contracts) for strike price at $5.00 until jan 21 2012. If this goes well, am I looking at a possible 8k in profit???


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## londoncalling (Sep 17, 2011)

http://www.investopedia.com/ask/answers/06/optionsbuyout.asp#axzz1aQM9lrxv

a little info on what may happen with your options


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## Betzy (Feb 7, 2011)

Thanks London, that did help, I just talked to broker and they basically say to watch both the option and the stock and see what they do with market open. Tomorrow will be a little more interesting than usual


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## humble_pie (Jun 7, 2009)

_If this goes well, am I looking at a possible 8k in profit??? _

yes, more or less 

when markets open, calculate the spread between $5 (strike of your call) & market bid for the stock. This will be the intrinsic value of your option (you did learn about all this at option seminar i hope.)

then eyeball the BA for your call. The option bid should be close to intrinsic value, might even be slightly below (this will be regrettable.)

if bid for this call option is crazy above intrinsic value it will be indicating that somebody is anticipating a higher competitive offer for DAY.

if you are a player who thinks no higher offer will appear, then those are the kind of delusional option twits to whom you might want to sell your calls.

note that intrinsic value of your $5 call is *not* $5.08, it is instead the diff between 5 & the bid for the stk. It will fluctuate around 5.08, but at this stage it's too early to tell how well the buyout offer is going to fly.


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## gibor365 (Apr 1, 2011)

Hmmm...strange, TSX was closed today, but TWD already updated price on DAY to $9.6
On other hand I cannot place Sell on limit above 10, getting error "Your limit price is too far off the current market price."


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## jamesbe (May 8, 2010)

Bid is $9.66 on Questrade as well this morning


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## humble_pie (Jun 7, 2009)

folks are eager to sell this am, dumping stk & options right & left.

i would suppose thru fear that ottawa won't allow a foreign takeover of this size. Ottawa nixed the potash sale. And the US has in recent past refused to sell strategic energy reserves to china.

re the jan 5 calls, holders dumped at 4.60. If the deal were to go through intrinsic value would be .48 higher, so seller(s) sacrificed a lot in what looks like a bit of a panic.


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## jamesbe (May 8, 2010)

Interesting.... I set my sell price for $10.06 this morning. I'll see how it goes today. Gov are slow and not in session...


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## humble_pie (Jun 7, 2009)

why not set price higher. Stk should creep up as the nervous nellies dump & depart.


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## jamesbe (May 8, 2010)

It seems pretty stuck at $9.68...


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## humble_pie (Jun 7, 2009)

i don't mean one would necessarily succeed today, it'll take a while to wash out all the nellies.

i thought i saw buying pressure in the call options ... that will tell you what kind of speculators are lurking.


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## gibor365 (Apr 1, 2011)

humble_pie said:


> why not set price higher. Stk should creep up as the nervous nellies dump & depart.


If I understand correct, to go higher than 10.08 , some rumors should start that there is another (higher) bid for DAY, is it correct?


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## Betzy (Feb 7, 2011)

humble_pie said:


> i don't mean one would necessarily succeed today, it'll take a while to wash out all the nellies.
> 
> i thought i saw buying pressure in the call options ... that will tell you what kind of speculators are lurking.


Kinda what i was thinking too HP, no rush here, broker said it would be Late dec or jan before deal went through. I see a lot of "nellies"too, I am not willing to sacrifice the .48 in the option and the stock value.
What are your thoughts on if Ottawa will let it go through?
Seems kinda of smaller potatoes than POT? No pun intended


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## HaroldCrump (Jun 10, 2009)

This is excellent news for the holders of DAY that held faith through the recent downturn.

I wonder, however, looking at the YTD chart whether there may have been some form of manipulation going on by the acquirer, directly or indirectly.
The stock was trading well above the buy-out offer price barely 6 months ago.
Since then, it began a steady and relentless decline and lost > 60% of its value within 3 - 4 months.
And now it gets bought out for an apparent 100% premium to current valuation.
I can't believe this isn't raising any eyebrows.

This also happens to be yet-another-chinese-company taking over yet-another-Canadian-company


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## humble_pie (Jun 7, 2009)

another speedy pass thru jan & apr calls & the sizing volume - meaning no of contracts bid & no of contracts offered - is hugely with the bidders.

ie there are a lot of speculators waiting to pick off the nervous option nellies.

but our betzy knows better ! she's not selling ... yet.


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## humble_pie (Jun 7, 2009)

how will ottawa react to big sinopec offer ?

previous chinese energy deals have been partnerships & partial ownerships only.

day's 100% takeout - if it goes through - is a first in north america.

http://www.nationalpost.com/news/Sinopec+deal+expected+raise/5530200/story.html


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## w0nger (Mar 15, 2010)

i sold half my holdings and will wait until january for the other half... or sell the rest at 11.5 if it ever gets there


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## Sherlock (Apr 18, 2010)

Woohoo! Finally some luck...

So how do I get my 10.08? It's only trading at 9.64. I assume I need to wait for Questrade to send me an email with instructions? Or do I just wait and I'll automatically get 10.08 per share?


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## Betzy (Feb 7, 2011)

97.1 Million shares traded today, how many were sold and how many were buy How does one find that out?
Nope not sold yet for me, gonna hold out for the extra $1,600


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## HaroldCrump (Jun 10, 2009)

Betzy said:


> how many were sold and how many were buy How does one find that out?


Eh?


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## Betzy (Feb 7, 2011)

I think i found my answer, newbie again. The volume chart gave an indication, a lot of purchased shares early in the day and a lot sold at day's end.
I am on the road for a week so might have to set a sell price and leave and see what happens...


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## humble_pie (Jun 7, 2009)

betzy let's hope your shares will be among shares sold but never god forbid among shares bought.

btw can you not find some way to stay in touch w the broker & their quote/order systems, this is not the time to embark upon a severe trappist monk silent order fasting prayer retreat while leaving them calls unattended.


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## gibor365 (Apr 1, 2011)

w0nger said:


> i sold half my holdings and will wait until january for the other half... or sell the rest at 11.5 if it ever gets there


I was planning to sell half of my shares at $10's, but it never got there....


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## londoncalling (Sep 17, 2011)

In a situation like this, unless you have already reaped a big profit is to hurry up and ... wait. This deal if it happens, which it should will be a couple of months.


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## Eder (Feb 16, 2011)

How is it I'm the only one that sold today in case the deal falls thru? The down side is 10x the upside no?


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## blin10 (Jun 27, 2011)

Eder said:


> How is it I'm the only one that sold today in case the deal falls thru? The down side is 10x the upside no?


I sold as well, rather put money to work somewhere else instead of wait it out for extra 40 cents and a possibility deal being rejected... but I can see how this can be a good strategy, load up 10k shares and make $4g's if the deal goes through


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## humble_pie (Jun 7, 2009)

there are legitimate arguments for selling now & there are legitimate arguments for holding out imho.

that " _I can see how this can be a good strategy, load up 10k shares and make $4g's if the deal goes through "_ is a valid strategy is evidenced by the large number of would-be call option buyers massed at the bid but not getting anywhere since nobody is selling to them.

what they're hoping to do is exercise any calls they might obtain for a total cost noticeably south of 10.08 & then tender to the bid after ottawa pronounces its blessing.


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## jamesbe (May 8, 2010)

I only have 150 shares I think I'm just going to sell off today at $9.65 or something. It's not going to make much difference for the 40 cents. And if the deal doesn't go through I lose so, why risk it? 

If you are confident it will go through though, there could be some cash to be made here.

EDIT: Gone at $9.68 which was the open price yesterday.


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## Betzy (Feb 7, 2011)

I just made $900 ish with a PBN call so I am going to sit and watch this one for a while, nervous but calm, if that makes any sense...


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## Toronto.gal (Jan 8, 2010)

jamesbe said:


> And if the deal doesn't go through I lose so, why risk it?


I'm reminded that last February, ECA announced a $5 billion joint venture with a PetroChina's subsidiary, but 4 months later, the deal fell through. ECA shares were almost $35 back then, now it's barely above $20.


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## Toronto.gal (Jan 8, 2010)

Betzy said:


> I just made $900 ish with a PBN call...


The options workshop really worked for you! 

Like hp says, nothing like experience [I'm reading the Bull Spreads section of Lawrence G. McMillan's book, fantastic Bible; 1000 pages].

Congratulations to those that bought DAY at the 52 week low & anyone else that profited from this potential deal!


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## Sherlock (Apr 18, 2010)

Is there any possibility at all that shareholders might vote against the takeover? Does that ever happen?


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## humble_pie (Jun 7, 2009)

t.gal why did the ECA deal fall through ? was that ottawa's nix or did deal just break down ? please do refresh us ...

note to sherlock: theoretically speaking shareholders always have to approve a major reorg like buyout, merger, etc.

in reality all that counts is the majority shareholder position. Once they have been won over (to the reorg) the minority retail shareholders must follow. In case they refuse, as i've mentioned there are regulations in place that permit a suitor who obtains certain percentages of the tender to force the remainder !

in the case of day you'll note the directors have already approved & recommended the buyout. This means 1) day is closely held & 2) those controlling shareholders have already agreed to sell.

so the shareholders' vote will be pro forma & it'll follow upon the decision of the major shareholder(s).

exceptions to this scenario are companies such as bce or cnr that are widely held in the public hand. There is no clear majority shareholder, so any aspiring takeover artist has a much more difficult if not impossible job securing approval.

takeovers are so much fun.


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## Toronto.gal (Jan 8, 2010)

humble_pie said:


> 1.t.gal why did the ECA deal fall through ? was that ottawa's nix or did deal just break down ? please do refresh us ...
> 
> 2. takeovers are so much fun.


1. "refresh you"? LOL. 

Thankfully I had sold those shares [& TLM] before all that and so I was not following the stock closely, but I recall the deal was supposed to be a *joint* venture, hence there needed to be an *'operations agreement'* between the 2, but they never arrived at an agreement that pleased both parties, hmmm, I guess Chinese are hard to please. 

Is now good time to get ECA/TLM shares back. 

2. Yes! My first experience had been when BHP wanted to get POT, but thank goodness those Ozzies in the Land Down Under failed. Don't get me wrong, I love Australians.


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## blin10 (Jun 27, 2011)

i think these smaller companies are easier on approval vs potash, eca, etc... I remember I was holding oil company HTE few years back and they got bought out too, and I was reading so many people were against that sell but it still went through... i actually bought back few k shares lol, hoping to make 1k if it goes through, imo it should


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## Sherlock (Apr 18, 2010)

I just sold at 9.68. I'm not gonna wait till january for an extra $80 and risk the deal falling through. I'm happy with my profit.


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## gibor365 (Apr 1, 2011)

humble_pie said:


> t.gal why did the ECA deal fall through ? was that ottawa's nix or did deal just break down ? .


Maybe i mistaken , but ECA deal just broke down w/o any Ottawa ban... Deal with DAY is closed and all analysts I read/heard are telling that there is no reason it will be banned.... and i very hope it won't be banned.

P.S. I still hold DAY want to sell when it pass $10 mark.... anyone else didn't sell?


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## londoncalling (Sep 17, 2011)

I'm still holding for awhile yet. The reason being is that I am confident the deal will be made and that the price will rise when the gov't gives it the green light. Let's hope it doesn't come back to haunt me on the off chance that the deal doesn't pan out...


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## lister (Apr 3, 2009)

I've been in that situation twice before with HTE and ELE. I sold ahead of the buyout date. With HTE the difference was negligible and for ELE I think I sold it at higher than the buying price. In either case I was 100% guaranteed the sale and I also got money in hand faster for other stocks I had my eye on.


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## al42 (Mar 5, 2011)

londoncalling said:


> I'm still holding for awhile yet. The reason being is that I am confident the deal will be made and that the price will rise when the gov't gives it the green light. Let's hope it doesn't come back to haunt me on the off chance that the deal doesn't pan out...



Yup,still holding. Might consider selling if it gets above the 1o dollar mak but not below.


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## Betzy (Feb 7, 2011)

Still holding here too, both shares and options


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## Betzy (Feb 7, 2011)

Still Holding, up 15+ cents...


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## humble_pie (Jun 7, 2009)

you're probably past the nervous threshold, from now on depends upon what argo calls the gummint decision.

do you see those call bids massed for the jan 5s & 6s & also for the april 5s & 6s. These are being bid only at the natural or less. What's interesting - last time i looked - is that 1 or 2 of the offers are low, ie close to the natural. I certainly could be wrong, but what this is telling me is that many folks want to buy for a total price (cost of op + cost of exercise) that will still be significantly less than the 10.08 that the deal will theoretically fetch if it goes through ... ie many folks believe the deal will go through.

so if i were long any itm calls in day i'd be keeping an eye on the sizing of those call options, ie the huge discrepancies between no of contracts bid vs no of contracts offered ... if substantial numbers of offers were to appear i'd be concerned, but as things are, all is calm ...


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## jambo411 (Apr 6, 2009)

Been following this for a while. Bought in May 2010 at $9.68 and DRIPed the whole time. Bought again in Dec 2010 and then Sep 27 of this year(I just got off night hsift and it seemed like a good idea). I won't make much but at least I am in the black. Nice to win one once in a while. May sell if the price is right, I just received the last of my DRIP shares yesterday.


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## gibor365 (Apr 1, 2011)

jambo411 said:


> Been following this for a while. Bought in May 2010 at $9.68 and DRIPed the whole time. Bought again in Dec 2010 and then Sep 27 of this year(I just got off night hsift and it seemed like a good idea). I won't make much but at least I am in the black. Nice to win one once in a while. May sell if the price is right, I just received the last of my DRIP shares yesterday.


I still didn't get my DRIPs...maybe tomorrow... what price are you planning to sell? I was palnning to sell half when it reaches 9.9+ and wait with other half until end


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## al42 (Mar 5, 2011)

Strange..Insider buying and a fairly large chunk. Does someone know something we don't know?

http://www.tmxmoney.com/HttpControl...ge=en&Submit=Submit&QuerySymbol=day&x=40&y=15


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## jambo411 (Apr 6, 2009)

Gibor I plan to sell above 9.9.


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## gibor365 (Apr 1, 2011)

jambo411 said:


> Gibor I plan to sell above 9.9.


so we have similar plans


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## Betzy (Feb 7, 2011)

So I would assume that the insider buy is a good thing, they wouldn't buy large amounts at this price is they knew the deal had issues??


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## londoncalling (Sep 17, 2011)

Betzy said:


> So I would assume that the insider buy is a good thing, they wouldn't buy large amounts at this price is they knew the deal had issues??


Safe assumption.


On another note. I have never owned a takeover target. If the deal does down through at 10.08 a share is there any incurred costs to the shareholder for processing fees, broker commissions etc?


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## al42 (Mar 5, 2011)

Filled today @$9.90. Not waiting anymore for a few more pennies.


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## AMABILE (Apr 3, 2009)

*Daylight*

I've got 1,000 shares....isn't $180.00 worth the wait?


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## al42 (Mar 5, 2011)

AMABILE said:


> I've got 1,000 shares....isn't $180.00 worth the wait?


Could be...I had a few more than 1000 shares and wanted the cash ready to deploy should something else pops up.


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## AMABILE (Apr 3, 2009)

*Daylight*

So why not wait for the cash until 
"something does pop up?"


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## humble_pie (Jun 7, 2009)

the same mismatch in sizing is persisting in the jan & april 5 & 6 calls (4 different calls). There are far more contracts bid than the few offered. This suggests that folks are hoping to buy calls & exercise for a total cost that will still be noticeably less than the 10.08 cash under the offer.

persistence of the aprils suggests to me that market thinks final closing, if it occurs, will drag well past january 2012 options expiration date.

somebody asked about fees, commissions, etc. There won't be any. If all goes well, just 10.08/sh neatly plopped into the account when the stock is removed. Shareholders will have to formally tender to the offer, though. Brokers will advise dates.


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## OppositeHouse (Jun 17, 2011)

Looks like a good short candidate to me. Trading below the offer price, maybe the market isnt sure? Due to the premium offered and the assest, it is highly unlikley a higher bid will come in. If the deal goes through not much lost, however the chinese could pull thier bid or the government may not approve, then the upside could be substantial.


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## humble_pie (Jun 7, 2009)

there you go.

bulls: sell stk now, liberate 9.91, buy 5 or 6$ calls at couple pennies higher than the natural, you'll tie up only 4.95 or 3.95 instead of the whole 9 yards, wait for gummint decision.

bears: short stk now, upside is likely set already, wait for gummint decision.

for anybody holding stk or options waiting for gd, even if this deal falls through remember she was highly courted & desirable once, will probably be sought out again.

meanwhile how come there's no discussion of which pols are on the foreign investment review committee, who's lobbying etc.


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## gibor365 (Apr 1, 2011)

Humble.... just wondering .... if you'd hold DAY and your average price is about $9.9, what would you do?


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## fernandes90 (Oct 24, 2011)

First post and all, does anyone reccomend purchasing the stock now?


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## al42 (Mar 5, 2011)

AMABILE said:


> So why not wait for the cash until
> "something does pop up?"


Ya, you're right..could have waited but I don't see that much upside from here and it doesn't look like it will close before the end of the year or early 2012.
There are allot of beaten up oil and gas stocks to put the money into with more upside than the 18 cents for Day.


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## gibor365 (Apr 1, 2011)

Yesterday had limit set to sell 50% of DAY at $9.92 , it didn't reach 1 cent to my price and today is already down 0.5%  .... my usual "luck"


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## HaroldCrump (Jun 10, 2009)

gibor said:


> Yesterday had limit set to sell 50% of DAY at $9.92 , it didn't reach 1 cent to my price and today is already down 0.5% .... my usual "luck"


How many shares do you own that $0.01c. would have made a material difference to your decision to sell?
You could have sold at market price to end the misery.


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## gibor365 (Apr 1, 2011)

HaroldCrump said:


> How many shares do you own that $0.01c. would have made a material difference to your decision to sell?
> You could have sold at market price to end the misery.


It's not the point, i set this price at night time and found out closing price after market got closed. Unfortunately i have to work and not always have access to discount brokerage 
probably should've sell at market in the opening....


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## humble_pie (Jun 7, 2009)

gibor i don't believe it matters very much. Energy is down today, DAY is down a few pennies correspondingly.

if you take the DAY return from here to 10.08, assuming the deal goes through, it's not much more than a hisa would pay, if final approval drags on well into 2012 which looks to be the case. And there's more risk in the daylight deal than in a hisa, of course.

if i held, i'd consider the tax effects of selling. If i had gains in DAY i'd make sure i wanted to take those gains in 2011. But then, i'm one who always considers tax effects of each trade, a topic that i don't see much discussed in this forum (i'm even one who does some trades strictly for the tax effects.)

i certainly hope for your sake that energy recovers & daylight in particular recovers north of 9.90.


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## gibor365 (Apr 1, 2011)

humble_pie said:


> gibor i don't believe it matters very much. Energy is down today, DAY is down a few pennies correspondingly.


thank... I personally don't care about taxes as all my rquities in registered accounts or TFSA


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## AMABILE (Apr 3, 2009)

*Daylight*

Why is the price languishing at $9.85 ?

Who are the SELLERS at this price ?


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## gibor365 (Apr 1, 2011)

AMABILE said:


> Why is the price languishing at $9.85 ?
> 
> Who are the SELLERS at this price ?


probably those who is seeing better buying opportunities


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## blin10 (Jun 27, 2011)

bet all those big banks loading up for free money, loading up 100mill is a nice payout with minimum risk


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## gibor365 (Apr 1, 2011)

Week ago set price to sell half on DAY shares at $9.90. Today several times DAY touched 9.90, but my order wasn't filled...
Why it's happening? Who sells first?

P.S> Now checked 3.41pm
Buyer 007 bought 1,075,200 shares at 9.89... holy moly it's about 10mil transaction...


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## blin10 (Jun 27, 2011)

gibor said:


> Week ago set price to sell half on DAY shares at $9.90. Today several times DAY touched 9.90, but my order wasn't filled...
> Why it's happening? Who sells first?
> 
> P.S> Now checked 3.41pm
> Buyer 007 bought 1,075,200 shares at 9.89... holy moly it's about 10mil transaction...


yah must be big boys buying it, that's a $204k profit ... but they're risking like $5mill if the deal doesn't go through


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## gibor365 (Apr 1, 2011)

My sell order got triggered at 9.90, sold half of my DAY shares. The rest planning to keep until end ...or may be sell above $10.
Anyone is still keeping DAY?


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## Betzy (Feb 7, 2011)

Still holding, although this little jump to 9.92 might make me sell, for the $170 left in potential profit i might be better off taking cash and trading somewhere else...


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## londoncalling (Sep 17, 2011)

I put in an order to sell half my position today at 9.92. This trade is being done to free up some cash for other purchases. I am thinking either CCO,BNS or RY. Looks like it's gonna be an up day for the market so my buy might have to wait till next week. That may not be a bad thing as a lot can happen in Europe over a weekend.


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## Betzy (Feb 7, 2011)

Betzy said:


> Still holding, although this little jump to 9.92 might make me sell, for the $170 left in potential profit i might be better off taking cash and trading somewhere else...


Well i had a sell order for the option at 4.90 and it sold today.
Still holding stock, sell order at 9.95.


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## londoncalling (Sep 17, 2011)

Betzy said:


> Well i had a sell order for the option at 4.90 and it sold today.
> Still holding stock, sell order at 9.95.


I ended up selling 70% of my position at 9.92. Plan to hold the remaining 30% till the sale completion unless the market tanks and the price of DAY climbs to near the sale price.

I hope you got a decent return on your option


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## Betzy (Feb 7, 2011)

Bought option at $0.50 sold for $4.90 so 980% gain, yup happy with that.


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## gibor365 (Apr 1, 2011)

Today got huge book from DAY and voting sheet..... is anyone gonna vote?


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## Betzy (Feb 7, 2011)

Just this morning had my sell limit meet at $9.95 and now its up to $9.98 ces la vie...


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## Betzy (Feb 7, 2011)

Well, markets are in the craper and this one in still pretty strong at around $9.92-93 all day. Anyone still holding on for sale?? I cashed all out and reinvested in other equities.


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## gibor365 (Apr 1, 2011)

Betzy said:


> Well, markets are in the craper and this one in still pretty strong at around $9.92-93 all day. Anyone still holding on for sale?? I cashed all out and reinvested in other equities.


I still hold about 260 shares.... will sell in $10 range or wait until end


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## AMABILE (Apr 3, 2009)

I'll wait a little longer with my 1,000 shares also,
for around $9.98.......but when is the end ?


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## AMABILE (Apr 3, 2009)

Finally sold my 1,000 shares @ $9.95,
redeploying $5,000 elsewhere and
keeping $5,000 CASH til January for my TFSA.


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## gibor365 (Apr 1, 2011)

AMABILE said:


> Finally sold my 1,000 shares @ $9.95,
> redeploying $5,000 elsewhere and
> keeping $5,000 CASH til January for my TFSA.


Looks like I'm the last on this forum who still hold DAY  BTW yeasterday i vote for Sell to Chinese comp 

I'm waiting for $10 area


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## londoncalling (Sep 17, 2011)

gibor said:


> Looks like I'm the last on this forum who still hold DAY  BTW yeasterday i vote for Sell to Chinese comp
> 
> I'm waiting for $10 area


I still hold 1/3 of my position dumped the other 2/3s at 9.92. Will hold the rest till the sale so I have some cash to deploy in the new year. Don't need the cap gains so why bother selling with nothing to offset


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## blin10 (Jun 27, 2011)

im actually thinking of buying 10k more shares... this thing is pretty much guaranteed, i'd say 98%, why not make $2k


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## gibor365 (Apr 1, 2011)

blin10 said:


> im actually thinking of buying 10k more shares... this thing is pretty much guaranteed, i'd say 98%, why not make $2k


This is what many are doing... most likely (98%  ) you can get 1.3-1.6% for in couple of months


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## londoncalling (Sep 17, 2011)

Dumped the last 1/3 of my position at 9.95 as I decided not to have to carry that stock forward into next year. I also got to free up some cash for end of year bargains if they happen to be available. If not I'll deploy the $ come January. The lesson I learned was that I probably should have unloaded all of it at once as I didn't gain too much after the announcement was made especially with the suspension of the dividend. I gained even less by selling it in chunks. I was going to hold the final 1/3 till takeover was completed. I just got a little itchy to play with my portfolio.  I figured it wasn't gonna move much in the next while anyways so it would be better than tinkering with my other holdings. I did learn a bit more about investing as this was my first take over. All in all it ended not terribly as I did make a meager gain which is always better than no gain at all. Or worse a loss.  

Cheers!


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## blin10 (Jun 27, 2011)

looks like sale is 100% done now... congrats to the winners


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## londoncalling (Sep 17, 2011)

LOL at first glance it would appear as though I sold a few days early.  However, I deployed the same amount of funds into LNV yesterday and it is up 15 cents a share plus the ex div is on the 28th. I don't feel too bad when I look at it that way. Also my congrats to anyone who made out a profit on this stock.


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