Most of the time, when news of a certain company’s stock reaches you through mainstream media, it’s too late to act upon.
But there’s been a $15 billion merger announcement that is riddled with insider clues that could see you on the receiving end of a $14,594 payout.
It happened once before in 2016, and those who moved quickly saw payouts in excess of $9,000, but the one I’ve got for you today is even bigger…
This week’s big merger announcement, that could be paying you $14,594, is very similar to one which was announced back in May, 2016.
10 months ago, information technology services giant, Computer Sciences Corporation (CSC), announced that it will be acquiring Hewlett-Packard’s Enterprise Services unit (HPE).
This proved to be one of the biggest tech acquisitions of the year, and will be completed by the end of the month.
Anyone who purchased 100 shares of each company when they noticed these insider clues is looking at a payout of at least $9,000, but it could be much more when the time to exit that trade comes around.
And I’m sure those people who were able to act on the CSC/HPE merger are rubbing their hands together after the big tech merger announcement this week.
On Monday Intel (INTC) announced that it’ll be buying Israeli chipmaker Mobileye (MBLY), which specializes in chips for autonomous cars.
Intel will be spending around $15 billion on the innovative tech company, but the chart movement has set off some high-profit alarms.
Right from the beginning, we saw that MBLY stock jumped up 30% at the open on Monday, and it’s expected to rise even more as the specifics of the merger unfold.
I’m noticing some immediate comparisons between the movement of MBLY and HPE when it became known that each was being acquired.
On May 24th, the day CSC announced its plans for the acquisition, HPE Jumped 16%. It then continued up to reach heights of 57% in gains.
On that same day, CSC jumped 45%, and then went on to reach heights of 106% higher than the price of its stock before the buyout was announced.
The CSC/HPE deal was massive, even for the tech industry, but both companies have quite a long history, and have a well-established market value.
This is where the explosive profits of our new merger come along.
While Intel is well-established in the industry, Mobileye is an up-and-coming company, and their speculatively high value lies in the market that they’re focused on.
The autonomous car industry has barely scratched the surface of its full market value, and Intel’s acquisition of Mobileye should be extremely profitable for both companies—as it could be for you and I.
If you were to purchase 100 shares of both Intel and Mobileye at the right time, you could be looking at a $14,594 payout—assuming that these two companies maneuver through the deal in the most profitable way.
But that’s where the insider slip-up comes in. The fact that Mobileye shares jumped up 30% out the gate on Monday means that there’s a positive outlook from the insiders of the company.
A jump this big arises when people inside the company buy as many shares as they can in anticipation of an acquisition.
While you’re keeping a close eye on Intel and Mobileye, make sure you’re watching the prices of CSC and HPE as that deal is materialized within the next month.
