I have exited my positions in ATLS and TRGP after Leon Cooperman appeared on CNBC to tell the world how much he liked Atlas Energy. I haven’t even watched the video above myself to be honest because I don’t give a fuck what Leon Cooperman thinks, but when the stocks pops as a result I’m happy to sell. When you compare the implied stub price of one week ago (left) with the picture today (right) you see that the market is suddenly valuing the stub a lot higher:
I think the current implied stub price is probably not very far removed from intrinsic value. Unfortunately my gains on this trade are limited because the merger spread between APL and NGLS increased. Making money on a merger arb while the spread increases is not bad though.
No positions anymore