September
9

Dropping Zi Corp. (ZICA) arbitrage play

Topics: trade ideas

In a normal environment, I would play the Zi Corp. (Nasdaq:ZICA) arbitrage trade out until the end.  Gun-to-head, I still believe that Nuance Communications (Nasdaq:NUAN) will boost its offer and close the deal.

That said, we are nowhere near a normal environment.  This turbulent market is no place for arbitrageurs.  Too many things can and do go wrong.  There is probably money to be made here, but I’m out.

Zi Corp. chart

DISCLOSURE: No position.

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Comments 2 Post Comment

2 Comments for

Dropping Zi Corp. (ZICA) arbitrage play

  • The Microcap Speculator — microcapspeculator.net | November 26th, 2008 at 4:41 pm

    [...] subscribing by RSS or by email.As markets intensified to the downside in early September, I wrote that this was no time to be an arbitrageur and scratched my own ZICA long.  Glad I [...]

  • billyg | December 2nd, 2008 at 2:17 pm

    great call. Let’s see if Nuance’s Ricci can pull this 1 off. I’m long NUAN.

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