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 did.
Today, Zi Corp.’s suitor, Nuance Communications (Nasdaq:NUAN), dropped its all-cash offer from $.80/share to $.40/share.
“We continue to believe that our all-cash offer is a compelling opportunity to [...]

Not every microcap chart is a complete disaster — just most.  Medical equipment company Fonar (Nasdaq:FONR), for example, just had a big bounce.  Sure, it was over $5 at the beginning of the year, and over $20 a few years back.  However, its up over 80% from its October low of $.66 and made the [...]

Only a few weeks ago, Zi Corp. (Nasdaq:ZICA) announced that a nameless “strategic partner” would make an investment at substantially above-market prices to thwart the takeover offer from Nuance Communications.
Suddenly, those plans are off the table.  Zi Corp. now says that it will go it alone because recent licensing deals with Nokia, Sony-Ericsson and others [...]

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 [...]