Still Long Biased

I don't believe the market has a lot of downside potential this week. The $12.5 billion cash  Petrohawk deal is expected to close this Friday. According to TrimTabs the closing of a deal is the equivalent of an inflow of 50% of the value of the deal. That equates to a $6.25 billion inflow. The reason this theoretically works is that managers put cash to work received from the closing of the deal. Have a good night.

1 comment:

Trim Tabs Liquidity Theory said...

[...] want to make a correction to my final post last night regarding the $12 billion cash Petrohawk deal that is expected to close this week. I [...]