If you are rich or even not, and have a few thousands at your disposal for investment activities, you might like to read the following because I have an easy trick to share on how to make easy money with no pain at all.
Here at myfirst50000.com, we really like when big fish eat small fish, meaning we like companies acquisition! My really first major one was TMX Group. As soon I read that the TSX was going to be acquire, back then it was supposed to be acquired by the London Exchange, well I jump on the occasion using my margin money of course. I got my hands on a few stocks at a great price. I hold, and when a deal was made, not with the London Exchange but with a corporation or banks and other gangster gangs, I hold and wait, and happily cash in the $$$.
Today, Loblaw announced that it will acquired Shoppers Drug Mart. Shareholders have vote in favor so its now just a matter of a few months before the deal come for real. According to this article, Loblaw will pay $61.54 per Shoppers Drug Mart shares. Shoppers Drug Mart closed today session at $58.88. Right now, if you invest let say in 100 shares of Shoppers at $58.88 (it could be possible to get shares at this price), well, you are GUARANTEE to make a quick and easy $266 very very easily.
Now, its better to do this with real cash because Loblaw takeover will only take in effect by the beginning of 2014. You can use margin cash, but you'll have to pay 4.25% interest. $6 000 at 4.25% make $21.25 per month in interest fees. Let say that the Loblaw takeover will happen in 5 months of now, this is how much you'll pay in interest: $21.25 X 5 = $106.25 and remember, you can declare this interest on you taxes because you are using debt to invest!
$266 made in the deal - $106.25 of interest fee - $9.99 in commission fee (for the purchase of the 100 stocks) = $149.76
You could make a clear $149.76 very, extremely easily.
Maybe you'll say that the profit made is too small, that it doesn't worth the trouble, etc. etc., but, no profit is never too small, especially in this rough economy. That $149.76 cover the cost of a ticket for Montreal-New Brunswick. MARVELOUS! Home sweet home, you are all mine.
Am I going to do this?
Well, it will all depend of the market opening.
Oh, and also, another great thing to consider is that Shoppers Drug Mart will pay dividend in the meantime, the next dividend date is September 26. Remember the 3 full business days BEFORE the 26 in order to be in for the dividend distribution.
To the profit of $149.76, you can easily add 2 dividend distribution of $28.50 each, for a total profit of $206.76.
Another big+ is that I guess Shoppers have a nice margin value. So your margin value and money left will just go up for the period you hold in Shoppers...
Ok, so if this is not brilliant, I will tell you my real name.