How You Can Get Free Money From Acquisitions
At first, I thought something terrible must have happened.
But we were about to make a profit.
All I had to do was trust the process.
Back in 2019, I was tracking analyst recommendations for a financial publisher. When I came in that morning and did my daily check of the model portfolio numbers, one position jumped out.
It had fallen to $0 overnight.
When I took a second look at the position, I realized why: The company had been officially acquired. Effectively, those shares didn’t exist in our tracking system anymore.
Our analyst reminded us soon after: Trust the process. This is what we were hoping for.
He was right. When all was said and done, the combined position was up 20% in just a few months. Sticking to our process paid off.
We call these types of events special situations, and they’re a massive focus for us at American Investor Today because of their rare profit potential.
Think triple-digit gains — outpacing the market by eight or nine times.
So today, I want to break down exactly what happened back in 2019. When the time comes, we want you to have access to the same types of profits…
Take Advantage of These Opportunities When They Come Along
Acquisitions like the one I’m talking about don’t happen every day.
In November 2019, Bristol-Myers Squibb bought Celgene for $74 million. Since both were biotech titans, the combined company controlled the No. 1 pipeline of oncological and cardiovascular treatments in the world.
This was big.
When the deal closed, anyone who was invested in shares of Celgene got an equal number of Bristol-Myers shares in their account.
Even better, every Celgene share also paid out $50 in cash. And to top it off, investors got special “rights” with each share.
Now, this is where the complicated stuff comes in. We don’t need to get into the weeds of the math and the business requirements that Bristol-Myers and Celgene worked out.
But I can tell you that the “rights” that showed up in investors’ accounts were free money.
Bristol-Myers was essentially telling every Celgene investor that they would be paid a certain dollar amount if Bristol-Myers hit its targets to develop certain drugs.
Even better, Bristol-Myers said that investors could lock in profits whenever they wanted.
So, overnight, our regular old Celgene shares became Bristol-Myers Squibb shares with a $50-per-share dividend and free, rising shares as a cherry on top. It doesn’t get better than that.
Now, that was a lot of moving parts I just talked about.
Many people shy away from positions like this because they take a little bit of extra work to understand. In fact, they take some work to even see coming.
That’s why having an experienced investor at the helm is a lifesaver.
So I got excited when Charles Mizrahi told me about the webinar he’s launching next Thursday, November 19. He wants to show you exactly how he spots another type of special-situations trade a lot like this in the making. And how you can swoop in and buy at just the right time.
Even better, the webinar is free to all of our American Investor Today readers. But you have to reserve your seat today.
If you walk away from this with anything, I hope it’s that opportunities like this can be incredible for you and your portfolio.
This Week: More Ways to Profit
Once you sign up for the webinar, be sure to take a look at what our team revealed this week. They’ve been excited about some special situations elsewhere in the markets…
- Warren Buffett is an icon in the investing world. But not everyone knows why. We break down one of his most profitable trades and exactly how you can do the same.
- Chad Shoop is a genius when it comes to the stock market. But he started out baling hay in the summers at 15. Today, he shows us his journey to becoming an advocate for you, American investors.
- Meanwhile, 2021 could be the year of mergers and acquisitions. Businesses have slowed their growth since the pandemic started. But that’s about to change — including one $35 billion deal we’re excited about.
- One of the biggest trends of the past few decades has been Americans spending on their pets. Today, that trend has collided with another of our favorite trends: internet and e-commerce. Even better, we have one-click way for you to profit.
We hope you’ll take advantage of these opportunities. And we hope we’ll see you next Thursday, November 19, at Charles’ webinar. You won’t want to miss it!
Managing Editor, Winning Investor Daily