A diary of the thought process behind my investment decisions
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.