Thursday, May 17, 2007

The Rumor Mill Operating At Full Tilt Today

It started out with a rumor that Norfolk Souther (NSC) was going to do a debt recapitalization and had put out invitations for a meeting on 6/6. I actually jumped on that one and booked a quick 15% gain, but jumped out. Bear Stearns now says the meeting is likely for a dividend increase.

Implied volatility has been rising on Jeffries (JEF) again. MassMutual has been the rumored buyer. I've been long on this one.

Monster (MNST) continues to be active with theflyonthewall.com noting "chatter" surrounding the name. The Optiondoggy site says there are three bidders. I am long MNST... what the heck.

Lexmark (LXK) surged as much as 7% on speculation is has received a $70 buyout off from China's Lenovo. Smith Barney, however, is saying that a bid is unlikely and maintains a Hold rating. Stock well off the high.

Pogo Producting (PPP) is mentioned again as getting closer to a deal to sell part or all of itself according to various reports on the web. Options trading is not overwhelming, but there is activity out to the $60 strike. I've been long here for a while.

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