The Little Book That Beats the Market - Joel Greenblatt

[Rooster]

I just got a good MOS price on both books, lol.

[npg]

That's the idea :)

[petekoch]

Re: Your signature.

I believe it was Bertrand Russell who once said 'The majority of men would rather die than think'.

But Alfred E.'s quote is good, too.

[Rooster]

I read the "Little Book that Beats the Market" and "You Can Be a Stock Market Genius." In chapter 4 of Genius, Greenblatt describes the purchase of merger securities. When one company is purchased by another, sometimes, in addition to cash, securities make up the balance of the payoff to the owners of the company that is being purchased. Bonds, preferred stock, warrants, and rights are some examples of securities that can be used in addition to cash and stocks to pay off shareholders.

In a case study that begins on p. 147 regarding the buyout of Super Rite Foods in 1989, Greenblatt describes a deal where preferred stock and warrants were issued in addition to cash. Instead of purchasing shares in Super Rite before the merger, Greenblatt waited until after the merger and then purchased the preferred stock and warrants from previous owners of Super Rite.

My question is: How does one purchase these types of securities? Would I need to call my broker and ask about it? How much of a commission would there be? Has anyone here ever done this type of thing?

[Straddle]

Nice book to read, interesting/funny/briljant at some times. I haven't tried the magic formula yet, but I probably will use it in the near future.