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Re: hweb2 post# 163773

Thursday, 10/30/2014 11:51:47 AM

Thursday, October 30, 2014 11:51:47 AM

Post# of 173663
I think a long/short PDII($2)/DRAD($4.28) trade could be a winner here...


PDII's 78-year old founder John Dugan owns a 32% chunk of the stock and Heartland Advisors has a 19% block. I find it hard to believe DRAD would have put forward their takeover approach without having a soft commitments I hand from both those blocks that they would vote for a deal. If so, who cares if management says the company is not for sale, DRAD can put their bid up for shareholder vote and move ahead that way. Management has a paltry 7% of the stock and can't block anything, really.

I totally agree DRAD is overvalued, hence the short side of the trade...

Time flies like an arrow; fruit flies like a banana.

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