Comment by The_rationalist
7 years ago
HELP, I have a big question : The buyout will go to the shareholders, that is a deterministic ~30% net benefit. (the offer being ~30% > than the market cap) So WHY shouldn't us the readers of the news, buy shares right now, before the market react ?
And we can even imagine a Web crawler software that detect that entreprise X announce to buy entreprise Y && the offer being > to the market cap, then auto buy ?
It's already too late to buy "before the market reacts". This is public information now, so it will be priced into the market price once the stock market opens.
Yes but my question would be, not everyone will buy at market opening T+1, but more some hours after ? Is This still impossible because of bots ? Tomorow empiricism will answer me.
Because there is nowhere(?) you can trade those shares right now, and if those places do exist, the local price almost certainly already reflects this news. Tomorrow morning, the new information will also influence the opening auction, and retail trades haven't a mission of catching any of the action
You might find on Monday the price tends upwards slightly for most of the day, which seems typical of this kind of news, but really, all the value of this deal is captured by existing shareholders -- who is going to sell you their shares at a cut price?
The market has already reacted. The bot strategy you describe is widely implemented. This is not an original idea.
Still the price stock hasn't gone uploads.disquscdn.com but this must be because we need to wait for tomorow opening. Are there any of thèses bots on github ? Why don't they work, are the market already fully saturated with those bots ?