My usual investing style is buy-and-hold, but last week I made a purchase for the very short term - Vero Software. As I wrote here, Vero seemed on the verge of being acquired at what I thought almost certain to be a price higher than they were currently trading at.
Yesterday the announcement was made - and although it was marginally below the lower end of my expectations, it still gives me a 17% profit for what will be a holding period of ~2 months. Enough shareholders have already committed themselves to voting in favour that the deal looks done and dusted.
I was expecting the offer to come in at about 18-24p, but in the end the offer was made at 17.5p, 40% above their recent average of 12.5p. So I was slightly on the optimistic side, but left myself plenty of margin of safety by buying at 15p.
The purchase should be complete in mid-July, at which point I can collect my 17.5p per share.
I don't expect to do much trading of this sort, but when the opportunity presents itself I'm certainly not going to spurn it.
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