Biovail (BVF), which closed yesterday at 14.60, opened at 15.61. I remember it trading at 15.30 or so in premarket. I remembered way back when Chrysler merged with Daimler. That was some crazy, good action for traders. But being sleepy at 3 am Hawaii time, I put my head on a pillow and crashed out.
BVF closed just one cent off its high at 16.67, up 14.18% for the day and concluding its move to the aforementioned premium. It traded 26.7 million shares, well above its average of 1.8 million. Slightly remarkable considering the all-day fade for the rest of the market. I never felt comfortable with the idea of trading something I'd never heard of, not that it stops a lot of traders. I'm content, but it's worth noting that this stock moved more than 6% after it opened. A buy then with a trailing stop might have worked. Maybe not. Shares went from the 15.61 open to over 16.50 just 30 minutes after the open, then sold back down below 16 before making a gradual ascent to the close.
The ship has passed. Congrats to BVF traders.
BVF 1-day chart (5-minute bars)
Here's today's chart on American Italian Pasta Company (IAPC), which accepted a buyout from Raycorp with a 27% premium. Unlike BVF, though, there was no chance after the open to pickup shares for a quickie profit. It was already at 52.63, a 26% premium.
IAPC 1-day chart (5-minute bars)