Wednesday, November 29, 2006

HD - Home Depot - Is It a Takeover Candidate?? LOL

Street Noise: CNBC reported earlier today that private equity may be eyeing home improvement retailing behemoth Home Depot. That seems doubtful, at least if you look at the options. Take the December 37-1/2 calls. The offer has been trading about 10-cents BELOW theoretical value. This again highlights the danger of chasing after takeover rumors. More than 7000 of the HD Dec37-1/2 calls traded today as speculators went a chasin'. Oh, well... it's only money - right?

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