Moneygram International Incorporated (MGI)

[GreedyAgorist]

Western Union also up this week. How? When one company buys another, the buyer usually goes down (you know, because they are spending money). My classic example being when Kraft bought Cadbury. Kraft went down 1 or 2 points. Of course, we are still in the rumor phase, so maybe both tickers get a buy-on-the-rumor effect, with the drop in WU coming after they buy. Or maybe it does not, if the market thinks WU is making a good move to avoid becoming a dinosaur. Or...

Maybe traders think one or the other of these tickers are undervalued. If MGI is cheap at under 4, where it is now, and WU can pick it up inexpensively, that can help them dodge the sell-on-the-news effect. Although with it being up 15%, I am not betting on that. I will stick with playing options on MGI, as long as it lasts.

Then again, both Schwab and TDA up today, so what do I know? But I will be surprised if this gets back to last year's high of $6.70