Friday, March 17, 2006
Thanks, Eliot, For the Shakedown
We've been hoping that Eliot Spitzer would provide us some more buying opportunities by baselessly shaking down some new company. We've made good money off of the AIG opportunity, but I missed the free money offered by Renaissance Re. We would have never considered H&R Block (HRB), except that Eliot's $30-60M shakedown attempts have failed so far, so now he's filed a big fat $250M suit. It's highly likely that he has nothing other than power (e.g. a factual basis for a winning case), since he hasn't won anything in court. HRB doesn't look so hot anyhow, and the Spitzer shakedown seems to have only provided a temporary $2 opportunity, but there will probably be some more coming. If he does manage to cause a nice gap, we may take it after looking into them more thoroughly. Thanks Eliot!
[Disclosure: Currently Long AIG and RNRPRC]
[Update 24Mar2006: The WSJ rips Spitzer apart.]
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12:44 PM
[Update 24Mar2006: The WSJ rips Spitzer apart.]
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